Go Fashion (India) Limited

Consumer Cyclical — Apparel Retail · NSE

₹275.35−₹2.25 (−0.81%)

DalalBaazaar Score

53 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, falling profits.

In simple words: Reasonable but unspectacular business quality, with modest growth. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of Go Fashion (India) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Go Fashion (India) Limited engages in designing, developing, sourcing, marketing, and retailing of women's and girl's bottom-wear products under the Go Colors brand in India.

IndustryApparel Retail

SectorConsumer Cyclical

Employees4,771

Annual revenue₹836 Cr

How does it make money?

Turns over ₹836 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹31 left at the operating level before interest, tax and depreciation. Each of its 4,771 employees supports ₹17.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹17.5 lakh

Who are its competitors?

The closest listed comparisons in its industry are TRENT LTD, TITAN COMPANY LIMITED, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 11.4% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE25.9%

What is the outlook?

7 analysts covering the stock expect revenue to grow about 8.0% and earnings to grow about 4.6% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+8.0%

Est. earnings growth+4.6%

Analysts7

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +26% while net margin moved -43% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+26%

Margin effect-43%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

• Revenue CAGR of 8.0% is steady
✗ Profit has declined at 10.6% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows
✗ Latest-year revenue growth of 0.0% is below the longer-term trend — momentum is fading
✗ Profit fell 23.8% in the latest year

Quality vs. Valuation

Company Quality

49/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

80/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

27.6x

3Y Median

55.6x

40 monthly readings · mean 51.9x · range 14.4x–90.4x

Sector Median

69.9x

median of 3 sector peers

🟢Current valuation is approximately 50% below its 3y median of 55.6x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 61% below the peer median of 69.9x.

vs. its own history

Cheap

55.6x median over 40 months · -50%

vs. sector peers

Cheap

69.9x median of 3 peers · -61%

vs. generic bands

Fair

15x–35x

EV/EBITDA

7.5x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Cash generation is improving
Free cash flow is up 83% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 15.9% to 8.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 17.1% to 11.4% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 1 high · 3 watch

🔴Debt has risen sharplyFinancial
Total debt is up 57% over 3 years, from ₹339 Cr to ₹532 Cr.
🟡Profit is decliningFinancial
Net profit is down 29% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 2.8 points over 3 years.
🟡Receivables growing faster than salesFinancial
Receivables up 46% against revenue up 26% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 50% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 61% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 34.2% to 31.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 46% against revenue up 26%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 15.9% to 8.6%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 29%✓ 31.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Interest cover stays above 3x✗ 2.6x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 6% a year✓ 8.0% CAGR
Latest reported year was 0.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹126 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

6 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 8 neutral · 1 weak

Market Cap

₹1,448 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

27.6x

Fair

Fairly valued against the generic band

P/B Ratio

2.14x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹9.99

Profitable

Profitable on a per-share basis

ROE

8.6%

Moderate

Moderate capital efficiency

ROCE

11.4%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.77x

Moderate

Moderate leverage

Revenue Growth (YoY)

0.0%

Modest

Modest growth

Profit Growth (YoY)

-23.8%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹126 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

21.7x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

11.8%

Average

Average margins

Net Margin

6.4%

Average

Average bottom-line conversion

Current Ratio

3.42

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.20

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

299.7 / 317.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

20.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹663 Cr	₹762 Cr	₹847 Cr	₹836 Cr	+8.0%
EBITDA	₹227 Cr	₹261 Cr	₹294 Cr	₹263 Cr	+5.0%
EBITDA Margin	34.2%	34.3%	34.7%	31.4%	—
PAT (Net Profit)	₹83 Cr	₹83 Cr	₹93 Cr	₹59 Cr	-10.6%
EPS	₹15.33	₹15.32	₹17.31	₹10.97	-10.6%
ROE	15.9%	13.7%	13.4%	8.6%	—
ROCE	17.1%	14.9%	15.1%	11.4%	—
Total Debt	₹339 Cr	₹469 Cr	₹507 Cr	₹532 Cr	+16.2%
Free Cash Flow	₹69 Cr	₹175 Cr	₹159 Cr	₹126 Cr	+22.3%

🟢 Revenue has grown at 8.0% a year over 3 years.

🟢 EBITDA has grown at 5.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 34.2% to 31.4% over 3 years (-2.8 pts).

🔴 PAT (Net Profit) has shrunk at 10.6% a year over 3 years.

🔴 EPS has shrunk at 10.6% a year over 3 years.

🔴 ROE has fallen from 15.9% to 8.6% over 3 years (-7.3 pts).

🔴 ROCE has fallen from 17.1% to 11.4% over 3 years (-5.7 pts).

🔴 Total Debt has grown at 16.2% a year over 3 years.

🟢 Free Cash Flow has grown at 22.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,296 Cr

Total Liabilities

₹605 Cr

Cash & Equivalents

₹13 Cr

Operating Cash Flow

₹165 Cr

Capex

-₹39 Cr

Shareholding (proxy)

Institutional Holding

28.6%

Insider Holding

58.0%

Analyst Consensus

Recommendations

4 Buy · 2 Hold · 1 Sell

Target Price (Mean)

₹341.57

+24.0% vs CMP

Target Range

₹282 – ₹403

Peer Comparison

Company	P/E	ROE
TRENT LTD	87.2x	25.9%
TITAN COMPANY LIMITED	68.5x	36.7%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 positive3 mixed2 general

Go Fashion (India) (NSEI:GOCOLORS) Stock Forecast & Analyst Predictions

Simply Wall Street, 14 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Go Fashion (India) vs Nifty 50: Share Price Performance Compared

Univest, 25 Sept

Buy Go Fashion India; target of Rs 340: Motilal Oswal

Moneycontrol.com, 04 May

Go Fashion Stock Market Today: Shares Jump 10% Ahead Of Q3 Results & Buyback

Samco, 27 JanCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Go Fashion (India) Share Price Target 2027, 2028 and 2030: Long Term Analyst Forecast

Univest, 07 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Go Fashion (India) Limited Just Missed EPS By 18%: Here's What Analysts Think Will Happen Next

Simply Wall Street, 03 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Valuation · Risk

WeakGrowth · Profitability

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Interest cover stays above 3x · see Key things to watch ↑