Motilal Oswal Targets Rs 340 for Go Fashion India
Motilal Oswal Maintains BUY Rating on Go Fashion India
In its latest research report, Motilal Oswal has provided an update on Go Fashion India, citing a reset year in FY26 marked by a decline in revenue of approximately 1% and a significant dip in EBITDA of around 32%. These numbers are attributed to weak same-store sales growth (SSSG) and negative operating leverage.
In response to these challenges, the company's management has initiated a series of measures aimed at improving its operational efficiency. This includes the aggressive closure of underperforming stores, with a total of 54 outlets shut down in FY26. Furthermore, the company is also focusing on optimizing its store formats and enhancing merchandising strategies to boost productivity.
| Metric | FY26 |
|---|---|
| Revenue Decline | ~1% |
| EBITDA Decline | ~32% |
| Store Closures | 54 |
Despite near-term pressures, Motilal Oswal remains optimistic about the stock's prospects. The company's valuation, currently trading at around 25 times trailing twelve months (TTM) earnings, and its strong balance sheet, with cash reserves accounting for approximately 10% of its market capitalization, provide significant downside support. Based on these factors, Motilal Oswal has reaffirmed its BUY rating on Go Fashion India with a target price of INR340.
Investor Takeaway
Investors should consider buying Go Fashion India with a target price of INR340.
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