Motilal Oswal retains Buy on Go Fashion, sees 31% upside to Rs 450

Motilal Oswal has retained its Buy rating on Go Fashion (India), with a Rs 450 target price. The brokerage expects store productivity, customer acquisition and operating-efficiency measures to aid margin recovery, forecasting 9% revenue CAGR and 21% PAT CAGR over FY26–FY29E.

— Source publishedFri, 31 Jul, 2026, 16:17 IST·First seen Fri, 31 Jul, 2026, 16:35 IST·Source Financial Express · BrandWagon

What happened

Go Fashion (India) · Motilal Oswal retained its Buy rating on Indian apparel retailer Go Fashion, setting a Rs 450 target price and projecting 31% upside. The

Key facts

  • Go Fashion target price: Rs 450
  • Go Fashion implied upside: 31%
  • Go Fashion FY26-FY29E revenue CAGR: 9%
  • Go Fashion FY26-FY29E pre-Ind AS EBITDA CAGR: 20%
  • Go Fashion FY26-FY29E PAT CAGR: 21%
  • Go Fashion valuation: about 14x TTM pre-Ind AS EV/EBITDA

Why this matters

Go Fashion’s recovery thesis highlights the strategic value of scalable women’s apparel formats with room to lift unit economics and margins.

What to watch

  • Quarterly same-store sales growth and sales per square foot/store, particularly versus new-store contribution.
  • Store additions, closures, relocation activity and the time required for new outlets to reach mature productivity.
  • Gross-margin trend, markdown intensity, inventory days and inventory write-offs.
  • EBITDA margin and employee, rent and advertising costs as a percentage of sales.
  • Repeat-customer metrics, online contribution and customer-acquisition spending.
  • Management guidance on FY26-FY29 revenue growth, store network strategy and margin-recovery timing.
  • Consumer discretionary demand during festival, wedding and seasonal apparel periods.
  • Prioritize store-level productivity over aggressive outlet-count expansion, including closure or relocation of persistently underperforming stores.
  • Increase repeat purchases through CRM, loyalty offers, localized assortments and cross-selling across bottomwear, denims, leggings and adjacent categories.
  • Tighten inventory planning and replenishment to improve full-price sell-through, reduce markdown risk and release working capital.
  • Use omnichannel fulfillment and marketplace visibility selectively to acquire customers without materially diluting store economics.
  • Maintain cost discipline in rent negotiations, staffing, logistics and marketing so incremental revenue converts into operating leverage.