Buy Go Fashion India; target of Rs 750: Motilal Oswal

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.