Go Fashion Q3 Results Review - Continued Improvement In Cash Flows; Maintaining A Buy: Anand Rathi

Anand Rathi Report

Go Fashion India Ltd.'s Q3 revenue was in line with our estimates, but the Ebitda margin was ~260 basis points above ARe, due to a better gross margin. A further decline in the inventory led to better cashflows, with pre-Ind AS operating cash flow of Rs 1,044 million (Rs 5 million in 9M FY23).

Cash reserves grew to ~Rs 2 billion (Rs 1.7 billion at end-H1). We lower our FY24e-26e revenue/Ebitda ~6.4%/7.1% on average, on the continued demand slowdown.

We are positive on Go Fashion as it maintains its growth trajectory with strong operational efficiencies.

We retain our 'Buy', at a 12-month target price of Rs 1,499, 22 times FY26e enterprise value/Ebitda (earlier Rs 1,607, 22 times FY26e enterprise value/Ebitda).

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.