Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
TCNS Clothing
to its discounted cash flow analysis.value.
The discounted cash flow value is simply looking at what the company is worth
today, based on estimates of how much money it is expected to make in the
future.
Discounted Cash Flow Calculation for BSE:541700 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
TCNS Clothing
is arrived at by discounting future cash flows to their present value using the 2 stage method. We use
analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
BSE:541700 DCF 1st Stage: Next 5 year cash flow forecast
= Present value of next 5 years cash flows +
Terminal Value
=
₹2,146.44 +
₹9,507.18
₹11,653.62
Equity Value per Share (INR)
= Total value / Shares Outstanding
= ₹11,653.62 /
61.32
₹192.41
BSE:541700 Discount to Share Price
Calculation
Result
Non-primary Listing Adjustment Factor
1 share in BSE:541700
represents 1.01249x
of
NSEI:TCNSBRANDS
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.01249x
Value per Share (Listing Adjusted, INR)
= Value per Share (INR) x Listing Adjustment Factor
=
₹
190.04
x
1.01249
₹192.41
Value per share (INR)
From above.
₹192.41
Current discount
Discount to share price of
₹781.70
= -1 x (₹781.70 - ₹192.41) / ₹192.41
-306.3%
Learn more about our DCF calculations in Simply Wall St’s
analysis model
.
The current share price of
TCNS Clothing
is above its future cash flow value.
Often investors are willing to pay a
premium
for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
TCNS Clothing's
earnings,
growth
and
assets
is considered below, and whether this is a fair price.
Price based on past earnings
Are
TCNS Clothing's earnings available for a low price, and how does
this compare to other companies in the same industry?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
it right!
12.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is
TCNS Clothing
expected to grow at an
attractive
rate?
TCNS Clothing's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
TCNS Clothing's earnings growth is positive but not above the India market average.
TCNS Clothing's revenue growth is expected to exceed the India market average.
TCNS Clothing's earnings are expected to grow by 12.6% yearly, however this is not considered high growth (20% yearly).
TCNS Clothing's revenue is expected to grow by 19.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
All data from TCNS Clothing Company Filings, last reported 1 month ago, and in
Trailing twelve months (TTM)
annual period rather than quarterly.
BSE:541700 Future Estimates Data
Date (Data in INR Millions)
EPS *
EPS High Estimate
EPS Low Estimate
Avg. No. Analysts
2021-03-31
25.45
26.20
24.70
2.00
2020-03-31
21.45
21.70
21.20
2.00
2019-03-31
21.15
21.30
21.00
2.00
BSE:541700 Past Financials Data
Date (Data in INR Millions)
EPS *
2018-12-31
19.15
2018-09-30
17.81
2018-06-30
16.97
2018-03-31
16.12
2017-03-31
2.67
2016-03-31
-8.09
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
TCNS Clothing is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
We assess
TCNS Clothing's future performance by looking at:
Is the annual earnings growth rate expected to beat the low risk savings rate, plus a
premium to keep pace with inflation?
Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
Is the annual earnings growth rate expected to be above 20%? (1 check)
Is the annual revenue growth rate expected to be above 20%? (1 check)
Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making
in the relevant year.
TCNS Clothing
has a total score of
3/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Below we compare
TCNS Clothing's growth in the last year to its industry (Luxury).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it
has maintained that growth in the year.
TCNS Clothing has delivered over 20% year on year earnings growth in the past 5 years.
TCNS Clothing's 1-year earnings growth exceeds its 5-year average (54.9% vs 41.5%)
TCNS Clothing's earnings growth has exceeded the IN Luxury industry average in the past year (54.9% vs 14.1%).
Earnings and Revenue History
TCNS Clothing's
revenue
and
profit
over the past 5 years is shown below, any years where they have experienced a
loss will show up in red.
All data from TCNS Clothing Company Filings, last reported 1 month ago, and in
Trailing twelve months (TTM)
annual period rather than quarterly.
BSE:541700 Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions)
Revenue
Net Income *
G+A Expenses
R&D Expenses
2018-12-31
9,567.19
1,205.32
3,105.01
2018-09-30
9,019.52
1,108.44
2,866.78
2018-06-30
8,702.20
1,044.71
2,687.93
2018-03-31
8,384.88
980.97
2,509.07
2017-03-31
7,009.35
157.97
2,705.27
2016-03-31
4,853.87
-414.96
2,391.19
2015-03-31
3,009.59
262.81
724.84
2014-03-31
1,695.90
87.50
418.52
2013-03-31
1,283.78
47.56
284.31
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
TCNS Clothing has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
TCNS Clothing used its assets more efficiently than the IN Luxury industry average last year based on Return on Assets.
TCNS Clothing has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
We assess
TCNS Clothing's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
Luxury
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
TCNS Clothing
has a total score of
6/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).
The boxes below represent the relative size of what makes up
TCNS Clothing's finances.
The net worth of a company is the difference between its assets and liabilities.
Net Worth
TCNS Clothing is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
TCNS Clothing's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of
TCNS Clothing's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is covered by short term assets, assets are 2813.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
We assess
TCNS Clothing's financial health by checking for:
Are short term assets greater than short term liabilities? (1 check)
Are short term assets greater than long term liabilities? (1 check)
Has the debt to equity ratio increased in the past 5 years? (1 check)
Is the debt to equity ratio over 40%? (1 check)
Is the debt covered by operating cash flow? (1 check)
Are earnings greater than 5x the interest on debt (if company pays interest
at all)? (1 check)
TCNS Clothing
has a total score of
6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
0%
Current annual income from
TCNS Clothing
dividends.
Estimated to be
0.23%
next year.
If you bought
₹2,000 of
TCNS Clothing
shares you are expected to receive
₹0
in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you
can get in a
savings account?
It is up there with the
best dividend paying companies?
Unable to evaluate TCNS Clothing's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
Unable to evaluate TCNS Clothing's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.
We also check to see if the dividend has increased in the past 10 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
CEO
AnantDaga
AGE
41
TENURE AS CEO
8.9 years
CEO Bio
Mr. Anant Kumar Daga serves as the Managing Director of TCNS Clothing Co. Limited and has been its Director since September 7, 2016. Mr. Daga holds a bachelor’s degree in commerce from the University of Calcutta and a post-graduate diploma in management from Indian Institute of Management, Ahmedabad. He joined TCNS Clothing as the Chief Executive Officer with effect from March 16, 2010. Prior to that, has worked with Reebok, India as director (sales) and with ICICI bank. He also features in the Economic Times’ 40 under 40 list of India’s hottest business leaders for 2017 and has been awarded the “Brand Professional of the Year Award” at the CMAI Apex Awards 2017.
CEO Compensation
Insufficient data for Anant to compare compensation growth.
Insufficient data for Anant to establish whether their remuneration is reasonable compared to companies of similar size in India.
Management Team Tenure
Average tenure and age of the
TCNS Clothing
management team in years:
1.8
Average Tenure
43.5
Average Age
The average tenure for the TCNS Clothing management team is less than 2 years, this suggests a new team.
Management Team
Onkar Pasricha
TITLE
Founder & Chairman
AGE
67
Anant Daga
TITLE
MD & Director
AGE
41
TENURE
8.9 yrs
Venkatesh Tarakkad
TITLE
Chief Financial Officer
AGE
46
TENURE
1.8 yrs
Piyush Asija
TITLE
Company Secretary & Compliance Officer
AGE
33
TENURE
1.2 yrs
Board of Directors Tenure
Average tenure and age of the
TCNS Clothing
board of directors in years:
1.2
Average Tenure
63
Average Age
The average tenure for the TCNS Clothing board of directors is less than 3 years, this suggests a new board.
TCNS Clothing Co. Limited designs, manufactures, markets, and retails women’s branded apparel. Its product portfolio includes top-wear, bottom-wear, drapes, combination-sets, and accessories that caters to various Indian woman, including every-day wear, casual wear, work wear, and occasion wear. As of March 31, 2018, the company sold its products under the W and Aurelia brands through 281 and 183 exclusive brand outlets, as well as Wishful brand through 1 exclusive brand outlet; through 1,469 large format stores; 1,522 multi-brand outlets; and online channels comprising online retailers and its Websites. It also sells its products through six exclusive brand outlets in Nepal, Mauritius, and Sri Lanka. TCNS Clothing Co. Limited was founded in 1972 and is based in New Delhi, India.
TCNS Clothing Co. Limited
W-House, 119,
Neelagagan towers,
New Delhi,
Delhi, 110030,
India
Listings
Exchange Symbol
Ticker Symbol
Security
Exchange
Country
Currency
Listed on
NSEI
TCNSBRANDS
Equity Shares
National Stock Exchange of India
IN
INR
30. Jul 2018
BSE
541700
Equity Shares
Mumbai Stock Exchange
IN
INR
30. Jul 2018
Number of employees
Current staff
3,086
TCNS Clothing
employees.
Industry
Apparel, Accessories and Luxury Goods
Consumer Durables
Company Analysis and Financial Data Status
Area
Date (UTC time)
Company Analysis updated:
2019/02/22 13:09
End of day share price update:
2019/02/22 00:00
Last estimates confirmation:
2019/02/12
Last earnings filing:
2019/02/08
Last earnings reported:
2018/12/31
Last annual earnings reported:
2018/03/31
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.