Go Fashion shares rally 5% as Motilal Oswal initiates coverage with buy, sees 31% upside
ADVERTISEMENT The target price of Rs 1,127 indicates an upside potential of 31% from current levels.
Motilal Oswal described Go Fashion, which operates under the 'Go Colors' brand, as 'a pioneer and category leader in the women's bottom wear market, holding an 8% share of the organized market.' The brokerage added that the company has 'successfully established a direct-to-consumer (D2C) brand, offering a wide range of products through 776 exclusive brand outlets (EBOs) across 180 cities.'
The brokerage highlighted that 'bottom wear addresses functional, repeat-use needs and is less susceptible to fashion cycles compared to top wear,' enabling steady demand and operational stability. The segment, valued at Rs 135 billion in 2020, is the fastest-growing sub-category in the apparel market, with about 12% CAGR and relatively low organized retail penetration, estimated at about 38% by 2025.According to the brokerage, 'GOCOLORS's success stems from its exclusive focus on women's bottom-wear, a structurally underserved category, which enabled the company to build deep domain expertise, high product variety, and strong brand recall, and its early transition to the EBO model, which provided complete control over pricing, merchandising, and consumer experience.'
ADVERTISEMENT Between FY19 and FY25, the company delivered a 20% CAGR in revenue and profit, with EBOs contributing 73% of sales. Gross margins improved 350 basis points to 63.3% over the period, though EBITDA margins stayed flat at about 17% due to negative operating leverage in FY25.Still, Go Fashion generated Rs 3.3 billion in cash from operations and Rs 1.6 billion in free cash flow, maintaining an 18% return on capital.
ADVERTISEMENT Looking ahead, Motilal Oswal sees a 16% revenue CAGR through FY28, driven by 18% growth in EBO and online channels. It expects operating leverage to offset some pressure from raw material costs, expanding EBITDA margins to 18.2%.'We value the stock at 45x FY27E EPS to arrive at our TP of INR 1,127,' the note said, adding that the stock currently trades at 34x FY27E EPS after a recent correction.
ADVERTISEMENT
Go Fashion shares have declined 8% over the past year and are down 21% in the last six months. However, the stock has recovered 25% over the past three months and gained 4.3% in the last week.Technically, the stock is trading above six of its eight key simple moving averages, including the 5-day, 10-day, 20-day, 30-day, 50-day, and 100-day SMAs. It remains below the 150-day and 200-day SMAs. The Relative Strength Index (RSI) stands at 56.6, indicating the stock is neither overbought nor oversold. Meanwhile, the Moving Average Convergence Divergence (MACD) is at 18.7, above its centerline but below the signal line.
ADVERTISEMENT Also read | Why is it the perfect time to invest in Nifty 200 Momentum 30 Index?
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
(You can now subscribe to our ETMarkets WhatsApp channel)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India Today
7 minutes ago
- India Today
Stocks to watch on July 3: Nykaa, RVNL, Nestle, Yes Bank, Dmart, PNB
Stock markets remained volatile and closed slightly lower on Tuesday, continuing their recent pattern of consolidation. Investors are now watching company announcements for the April–June quarter results, while developments related to a possible trade deal between India and the United States are also being closely companies are expected to remain in focus on Wednesday due to key updates and financial E-Commerce Ventures, the parent of Nykaa, is likely to see movement as early investor Harindarpal Singh Banga, along with Indra Banga, plans to sell shares worth up to Rs 1,200 crore through a block deal. The transaction is expected to be executed Oswal Financial ServicesThe company has achieved a key milestone with its Asset Management Company (AMC) crossing Rs 1.5 lakh crore in Assets Under Management, reflecting strong investor Vikas Nigam Limited (RVNL)The company has appointed Chandan Kumar Verma as its new Chief Financial Officer (CFO), effective July 2. He previously served as Executive Director – Finance at airline confirmed a minor incident where a cosmetic window frame on one of its Bombardier Q400 aircraft became loose during a flight and was later found dislodged. SpiceJet stated the issue did not affect passenger safety or the aircraft's structural (Avenue Supermarts)The retail chain reported a 16% year-on-year rise in standalone revenue for the first quarter of FY26. Total revenue stood at Rs 15,932.12 crore, showing steady growth in consumer IndiaThe company has added a new Maggi Noodles production line at its Sanand plant in Gujarat. This expansion was done with an investment of Rs 105 crore to meet growing consumer BankPankaj Sharma has resigned from the role of Chief Strategy and Transformation Officer, effective July 2. He has stepped down to explore other opportunities outside the Housing FinanceThe Board has proposed raising up to Rs 10,000 crore through non-convertible debentures (NCDs) on a private placement basis. This plan will be presented at the upcoming Annual General company received a Show Cause Notice from the Central GST Commissionerate, Dehradun, for alleged short payment of GST worth Rs 265.25 crore. The notice relates to the financial years 2018–19 to 2020–21 and involves Universal Comfort Products, which merged with Voltas in National Bank (PNB)The bank reported a 11.6% rise in global business, reaching Rs 27.19 lakh crore. Domestic business increased to Rs 26.17 lakh crore, up 11.1%. Global deposits grew 12.8% to Rs 15.89 lakh crore, while domestic deposits rose 12.2% to Rs 15.37 lakh crore. Global advances were up 9.9% to Rs 11.31 lakh crore and domestic advances increased 9.7% to Rs 10.80 lakh BankThe bank posted a 10.2% rise in total business for Q1, which stood at Rs 13.44 lakh crore. Deposits grew 9.3% to Rs 7.44 lakh crore and gross advances increased 11.3% to Rs 6 lakh crore.- Ends advertisement
India.com
16 minutes ago
- India.com
Business Idea: Haryana-Based Husband And Wife Clock Rs 9 Lakh Revenue Per Month With Mushroom Cultivation Business
photoDetails english 2925761 Updated:Jul 03, 2025, 08:08 AM IST Haryana Couple Earns Rs 9 Lakh/Month With Mushroom Farming Biz 1 / 9 For Haryana-based Sonia Dahiya, patience and hard work have been the secret to success for her flourishing mushroom cultivation business. What started as a passion evolved into a thriving business, generating substantial income for the assistant professor. Together with her husband, she founded the Doctor Dahiya Farm that produces a monthly output of 9 to 10 tonnes of mushrooms. Located in Sonipat, Haryana, the mushroom farm clocks a monthly revenue of Rs 9 lakhs. Business Idea 2025: How mushroom business started? 2 / 9 Sonia Dahiya, an assistant professor at Deenbandhu Chhotu Ram University of Science and Technology, started her own mushroom farming business during the COVID-19 pandemic. With her academic experience in biotechnology, she and her husband Vijay Dahiya set up mushroom units after conducting extensive research and market study. In 2020, the couple established the Doctor Dahiya Mushroom Farm, showcasing their expertise in the field of mushroom farming. Business Idea 2025: Initial investment from savings 3 / 9 To set up the mushroom farm, Sonia and Vijay invested Rs 40 lakhs from their savings. They also received a state Horticulture Department subsidy. The entrepreneur couple first set up two mushroom growing rooms and later set up 5,600 mushroom bags in the rooms. Later, the couple set up a compost unit for Rs 20 lakhs. By 2022, the couple expanded their mushroom farming operations significantly by setting up two more growing rooms. Business Idea 2025: Initial challenges 4 / 9 During the establishment of the mushroom farm, several obstacles came up. The first was the lack of steady output flow of mushrooms from the two growing units they began with. Second, they were not getting the desired results from the compost they were purchasing from the market. To solve these issues, Sonia set up a compost unit and two more growing rooms. Mushrooms sold in Delhi and to direct customers 5 / 9 The farming entrepreneurs sell their mushrooms wholesale in Delhi's Azadpur Mandi. They also have numerous direct customers who purchase 50 kg of mushrooms daily. The couple caters to caterers, cooks, restaurants, dhabas and marriage banquet halls. Varieties of mushrooms sold 6 / 9 The Doctor Dahiya Mushroom Farm offers button mushrooms, exotic mushrooms like portobello, oyster and milky mushrooms. Orders have to be placed in advance for exotic mushrooms. Sonia does not heavily market the products. The direct customers come from word-of-mouth publicity who buy from her due to the quality and taste of the mushrooms. Mushroom training and consultancy workshops 7 / 9 Sonia and Vijay provide regular mushroom training and consultancy workshops to aspiring farming entrepreneurs and students. These programmes cover button mushroom farming aspects like spawn procurement, cultivation processes and compost methodology. Women employed in mushroom farm 8 / 9 Popularly known as the Mushroom Lady of Haryana, Sonia Dahiya is an advocate of women's financial independence and social status. She employs women in her mushroom business which generates stable employment for close to twenty women in the nearby village. Business Idea 2025: Starting mushroom business not too difficult 9 / 9 Sonia believes that the best course of action for a business is to get started right away. According to Sonia, starting a mushroom farming business is not too difficult and is a great option for anyone who does not want to work a full-time job.
Time of India
16 minutes ago
- Time of India
Moving Media Entertainment IPO to list today. GMP hovers at 22% over issue price
Moving Media Entertainment is all set to make its debut on the NSE SME platform on July 3 following a Rs 43.40 crore IPO that garnered substantial investor attention. The GMP ahead of listing stands at Rs 16 over the issue price of Rs 70, indicating a potential listing gain of over 22%. The company's IPO, which was open from June 26 to June 30, comprised a pure fresh issue of 62 lakh equity shares. The price was fixed at Rs 70 per share, with a minimum lot size of 2,000 shares. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like El precio de esto kit de alarma que arrasa en Capital Federal te sorprenderá Verisure Alarma Ver oferta Undo Gretex Corporate Services acted as the book-running lead manager for the issue, while Maashitla Securities was the registrar. Founded in 2022, Moving Media Entertainment is engaged in the rental of high-end film and television production equipment such as cameras, lenses, lighting gear, sound systems, and accessories. The company services a wide clientele, including leading production houses like Star India , Celebframe Entertainment, Colosceum Media, and Sunshine Pictures. Live Events Its competitive strength lies in owning its inventory—unlike many peers—offering the latest models from top-tier brands to advertising agencies, filmmakers, OTT platforms, and event companies. The company also provides customized rental solutions and a responsive logistics network across India. The company saw its revenue jump 59% to Rs 37.06 crore in FY25 from Rs 23.38 crore in FY24. Net profit for FY25 came in at Rs 10.4 crore, up marginally from Rs 10.09 crore in the previous year. Proceeds from the IPO will be used for investment in advanced camera solutions, debt repayment, and general corporate purposes. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
