Overview

• Motilal Oswal set a Rs 1,127 target price for Go Fashion, triggering a stock jump of over 5% on June 3, 2025.
• The broker models 16% revenue growth from FY25 to FY28 and anticipates 19% and 20% CAGRs in EBITDA and PAT, respectively.
• Go Fashion commands an 8% share of India’s organised women’s bottom-wear segment, which was valued at Rs 13,500 crore in 2020 with only 38% organised retail penetration.
• Gross margins may dip by 130 basis points from raw-material cost pass-through, but operating leverage could lift EBITDA margins by 135 basis points.
• Identified risks include heavy Reliance Retail dependence, potential retail weakness, rising competition and an 11.3% promoter share pledge.