Motilal Oswal's research report on Go Fashion India
Go Fashion reported yet another muted quarter with revenue growth of 7%. A strong pickup in LFS (up 18% YoY) was offset by persistent weakness in same-store sales (-4%). Margin pressure persisted as pre-Ind AS EBITDA margin fell ~130bp YoY to 14.3%. EBITDA declined 1% YoY to INR320m due to negative operating leverage. Overall, FY26 had a weak start, with 1H revenue/EBITDA/PAT performance standing at +4%/flat/-10%. We bake in 6%/4%/4% growth in 2H.
Outlook
Valuations remain reasonable at ~32x 1-year forward earnings, though a sustainable turnaround in SSSG is key to re-rating. We maintain our BUY rating with a TP of INR750, based on 30x Dec’27E EPS.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
