Buy Go Fashion India; target of Rs 465: Motilal Oswal

Buy

Motilal Oswal's research report on Go Fashion India

Go Fashion reported another weak quarter as 3QFY26 revenue declined 9% YoY, largely due to operational disruption at a key LFS partner. LFS revenue plunged 36% YoY, while EBO revenue declined ~2% amid persistent footfall pressure and a 4.5% fall in same-store sales. Operating deleverage materially impacted profitability, with pre-Ind AS EBITDA/PAT declining 57%/71% YoY, owing to limited cost absorption.

Outlook

Valuations at ~30x TTM earnings appear reasonable, but a durable SSSG recovery remains the key catalyst for earnings visibility. We maintain our BUY rating with a TP of INR465, based on 23x 1-yr fwd earnings.

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