TCNS Clothing - Strong Recovery Expected In Festive Season: ICICI Direct

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Direct Report.TCNS Clothing Co. Ltd.’s revenue recovery has been sluggish with sales reaching 100% of pre-Covid levels versus other lifestyle retailers posting 120-140% recovery rate in Q1 FY23. It mainly caters to office, festive ethnic wear for women that was slow to pick up post economy re-opening versus other segments (western wear).We envisage a material improvement in operating metrics, going ahead, on the back of a gradual recovery in same-store sales growth (double digit growth) during festive season. Also, after muted store addition pace in the past two years, TCNS has embarked on an aggressive store addition with plan to open 100 plus stores in FY23 (54 stores added in FY20).Over the past two years, key agenda of TCNS was conserving balance sheet strength with a conservative approach on the working capital front (down 5% versus pre-Covid levels). This may have led to revenue loss but with robust cash on the books (Rs 150 crore), the company is now well geared up to accelerate its growth trajectory. .Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

TCNS Clothing - Strong Recovery Expected In Festive Season: ICICI Direct

TCNS Clothing - Strong Recovery Expected In Festive Season: ICICI Direct

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