Buy Go Fashion (India), target price Rs 1300: ICICI Securities

ICICI Securities has buy call on Go Fashion (India) with a target price of Rs 1300. The current market price of Go Fashion (India) is Rs 920.4. Time period given by analyst is one year when Go Fashion (India) Ltd. price can reach defined target.

Go Fashion (India) Ltd., incorporated in the year 2010, is a Small Cap company (having a market cap of Rs 4983.68 Crore) operating in Apparels sector.

Go Fashion (India) Ltd. key Products/Revenue Segments include Garments and Scrap for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-12-2021, the company reported a Standalone Total Income of Rs 145.22 Crore, up 23.96 % from last quarter Total Income of Rs 117.15 Crore and up 40.18 % from last year same quarter Total Income of Rs 103.59 Crore. Company reported net profit after tax of Rs 23.69 Crore in latest quarter.

Investment Rationale
The brokerage models revenue / EBITDA / PAT CAGR of 38% / 118% / 97% respectively over FY22-FY24E. It initiates coverage on the stock with a BUY rating and DCF-based target price of Rs1,300. Key risks: (1) risk of high share from Reliance Retail and (2) likely increased competition from new players entering the category.

Promoter/FII Holdings
Promoters held 52.79 per cent stake in the company as of 31-Dec-2021, while FIIs owned 11.35 per cent, DIIs 18.75 per cent.