Go Fashion Shares Jump After Motilal Oswal Initiates 'Buy'
Motilal Oswal has set a target price of Rs 1,127, indicating an upside potential of 31%.
Shares of Go Fashion (India) Ltd. rose over 5% on Tuesday after Motilal Oswal initiated coverage on the stock with a 'buy' rating.
Motilal Oswal has set a target price of Rs 1,127, indicating an upside potential of 31%. The company is well-positioned to capitalise on its leadership in the women’s bottom-wear segment and holds significant expansion potential beyond its current geographical footprint, the brokerage said.
It projects a 16% compound annual growth rate in revenue over financial year 2025–28E, despite an anticipated contraction of approximately 130 basis points in gross margins due to the pass-through of raw material cost benefits. However, Ebitda and profit are expected to register robust CAGRs of 19% and 20%, respectively, during the same period, supported by strong operational cash flows.
The operator of the Go Colors brand is a category leader in the women’s bottom wear market, with an 8% share in the organised segment. Bottom wear, being a functional and repeat-use category, is less exposed to fashion trends and enjoys year-round demand, noted the brokerage.
Valued at Rs 13,500 crore in 2020, it is the fastest-growing apparel sub-category, yet remains fragmented, with organised retail penetration expected at just 38% by 2025.
Go Colors' exclusive focus on women’s bottom wear—an underserved space—allowing for deep expertise, product variety, and strong brand recall. Its early adoption of the EBO model gave it control over pricing, merchandising, and customer experience, supporting scalable expansion across metro and tier 2/3 cities.
Reliance Retail exposure, weak retail sentiment, rising competition, and promoter pledge are some of the key risks noted by the brokerage.
Go Fashion Share Prices Advance
Shares of Go Fashion rose as much as 5.40% to Rs 905 apiece, the highest level since May 20. It pared gains to trade 4.23% higher at Rs 894.95 apiece, as of 9:17 a.m. This compares to a 0.03% advance in the NSE Nifty 50.
The stock has fallen 10.61% in the last 12 months and 5.29% year-to-date. Total traded volume so far in the day stood at 0.26 times its 30-day average. The relative strength index was at 50.03.
All eight analysts tracking the company maintain a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target implies an upside of 8%.
