Motilal Oswal rates Go Fashion India buy with ₹300 target
Motilal Oswal just gave Go Fashion India a "buy" call, setting a target price of ₹300.
Even though the company had a tricky second quarter this year (with revenue dipping 3% thanks to festive timing changes), they see near-term margin pressure, a debt-free balance sheet with ₹2.5b cash, and funding for the larger-store transition.
Go Fashion India EBITDA down 40%
Go Fashion's profits took a hit last quarter, with EBITDA down 40% due to pricier fabrics and bigger spending on branding.
Still, the company stands out for being debt-free and holding ₹2.5 billion in cash (about 20% of its market value), which helps it expand into bigger stores.
The plan? It will fund the larger-store transition.
Motilal Oswal is optimistic about Go Fashion's future because of the near-term margin pressure, a debt-free balance sheet, and ₹2.5b cash, which helps fund the larger-store transition.