News

Emkay Global Financial's research report on Go Fashion

GO’s Q4 EBITDA was 7-10% better than estimates, largely led by higher growth in the LFS channel and better gross-margin on higher credit note. Revenue grew ~13%, led by 24% growth in LFS while EBO grew 11% (SSG: 2.1%). EBO SSG was driven by gain in realizations (flat volume). Despite the beat, our EBITDA/TP estimates are cut by ~5% on muted demand trends (flat SSG in Apr25) and management commentary of stable EBITDA margin. After a huge round of store optimization (pruned ~6% network in FY25), store additions are expected to inch up, with outlook of 30/120 openings in Q1/FY26. Notably, GO also shared plans to pilot core/functional products in women top-wear/men’s t-shirts categories, in 25 of its larger stores (1,500-2,000sqft). GO expects the new categories too to follow the core principles of high throughput, strong margins, and quick paybacks.

Outlook

We maintain a conservative stance for now and will keenly watch this space. Valuations at 40x/35x FY26/27E EPS are reasonable and growth rebound offers re-rating potential. We maintain BUY and cut our TP by 5% to Rs950 (25x Mar-27 EBITDA).

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.

Go Fashion - 02052025 - emkay

Discover the latest Business News, Budget 2025 News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Stock Market Holiday Jammu Kashmir News Live Tim Cook Delhi Rain Heatwave in India Odisha 10th Result 2025 WB Madhyamik Result SSLC Result 2025 Kolkata News IPL Points Table 2025

Business Markets Stocks India News City News Economy Mutual Funds Personal Finance IPO News Startups

Home Currencies Commodities Pre-Market IPO Global Market Bonds

Home Loans up to 50 Lakhs Credit Cards Lifetime Free Finance TrackerNew Fixed Deposits Fixed Deposit Comparison Fixed Income

Home MC 30 Top Ranked Funds ETFs Mutual Fund Screener

Income Tax Calculator EMI Calculator Retirement Planning Gratuity Calculator

Stock Markets

News18 Firstpost CNBC TV18 News18 Hindi Cricketnext Overdrive Topper Learning

About Us Contact Us Advisory Alert Advertise with Us SupportDisclaimer Privacy Policy Cookie Policy Terms & Conditions Financial Terms (Glossary) Sitemap Investors

You are already a Moneycontrol Pro user.