🟨 At a Glance
Go Fashion (India) Ltd, the OG of women’s bottomwear retail in India, is a stylish business with a not-so-stylish stock return lately. While sales are growing and margins are thicc, valuations and debt are trying to sneak into the dressing room.
1. 🪝 Introduction with Hook
Once upon a time, there was a company selling leggings at 51x P/E — and people still bought it. That company is Go Fashion.
But now, while fashion is seasonal, margins aren’t supposed to be — and yet Go Colors somehow manages to maintain both.
2. 👜 WTF Do They Even Do?
- India’s first brand exclusively focused on women’s bottom-wear
- 50+ styles, 120+ colors, and apparently no cap on price tags
- Products sold via:
- 680+ Exclusive Brand Outlets (EBOs)
- 2,000+ Large Format Stores (LFS: Shoppers Stop, Reliance Trends)
- Website and marketplaces (Myntra, Flipkart, Amazon)
- Strong SKU count, premium pricing, brand-led retail model
💥 USP: Bottomwear-only strategy, zero competition in its niche, and now expanding internationally (Dubai debut).
3. 💰 Financials – Profit Growth, Margins, ROE, ROCE
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Sales | ₹665 Cr | ₹763 Cr | ₹848 Cr |
| Net Profit | ₹83 Cr | ₹83 Cr | ₹94 Cr |
| OPM | 32% | 32% | 32% |
| ROE | 15.3% | 15.3% | 17.3% |
| ROCE | 18% | 16% | 14.9% |
➡️ Growth is there. Margins are elite. But profits are walking not running.
4. 💸 Valuation – Is It Cheap, Meh, or Crack?
| Metric | Value |
|---|---|
| Price | ₹899 |
| Market Cap | ₹4,852 Cr |
| P/E | 51.9x |
| P/B | 6.96x |
| EV/EBITDA | ~26x |
📉 Fair Value Range = ₹720 – ₹820
Based on 40–45x sustainable EPS of ₹17–₹18. Currently, it’s strutting the ramp in Louis Vuitton valuation — but it ain’t no Trent.
5. 🧵 What’s Cooking – News, Triggers, Drama
- 🛍️ First international store in Dubai with Apparel Group (Q1 FY26)
- 🏪 Consistent store additions (40–50 EBOs per year)
- 💼 Hiring ex-Lenskart and Zivame folks for omni-channel push
- 🤐 No dividend yet — still in growth mode
- 🎯 Focus: deeper Tier 2-3 penetration + D2C growth
The triggers are real. Execution is slow-cooked.
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Item | FY25 |
|---|---|
| Equity | ₹54 Cr |
| Reserves | ₹643 Cr |
| Borrowings | ₹507 Cr |
| Total Liabilities | ₹1,280 Cr |
| Fixed Assets + CWIP | ₹571 Cr |
⚠️ Debt is up 5x from FY20 levels. Capital expenditure is heavy — and it’s showing in balance sheet bloat.
7. 💸 Cash Flow – Sab Number Game Hai
| FY | CFO | FCF | Capex |
|---|---|---|---|
| FY23 | ₹104 Cr | ~₹20 Cr | ₹84 Cr |
| FY24 | ₹219 Cr | ~₹146 Cr | ₹73 Cr |
| FY25 | ₹199 Cr | ~₹123 Cr | ₹76 Cr |
Strong operating cash flows, but everything is getting reinvested. FCF positive though — we love that.
8. 📊 Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROE | 17.3% |
| ROCE | 14.9% |
| OPM | 32% |
| Debt/Equity | 0.93 |
| Inventory Days | 326 |
| Cash Conversion Cycle | 328 days |
🔥 OPM is 🔥 but working capital is a red flag. Inventory turns slower than a Zara sale queue.
9. 📉 P&L Breakdown – Show Me the Money
- Revenue: ₹848 Cr
- EBITDA: ₹268 Cr
- Net Profit: ₹94 Cr
- EPS: ₹17.31
- Other Income: ₹25 Cr (a nice kicker)
- Interest Cost: ₹46 Cr 😬 (higher than Flipkart discounts)
Gross numbers great. Net numbers a little thin, thanks to debt + depreciation.
10. 🛍️ Peer Comparison – Who Else Is in the Game?
| Peer | P/E | ROCE | OPM | Comment |
|---|---|---|---|---|
| Trent | 153x | 30.7% | 16.5% | King of Valuations |
| Vedant Fashions | 50x | 26.6% | 46.3% | Ultra-margin |
| Go Fashion | 51.9x | 14.9% | 32% | Good, but expensive |
| Arvind Fashions | 177x | 6.3% | 13% | LOL no |
In bottomwear, Go Colors has no real competition. But Trent and Manyavar are eating shelf space in festive seasons.
11. 🧾 Misc – Shareholding, Promoters, Liquidity
| Group | Holding (%) |
|---|---|
| Promoter | 52.78% |
| FIIs | 11.70% |
| DIIs | 33.26% |
| Public | 2.25% |
Institutional heavyweights love it. But public float is tighter than their jeggings. That’s good for price, bad for liquidity.
12. 📦 Fair Value Range – ₹720 to ₹820
Based on:
- FY26E EPS = ₹18
- Reasonable multiple = 40–45x
- EV/EBITDA ~20–22x support zone
Current Price ₹899 = little rich, a bit runway-ready. But not worth tripping over unless international expansion or festive demand explodes.
13. 🧠 EduInvesting Verdict™
👖 India’s most profitable leggings company is a cash machine with a fashion problem – it’s overvalued.
✅ Great margins
✅ Solid store growth
✅ Strong brand recall
🚩 Inventory cycle + rising debt
🚩 Too rich vs peers like Vedant, too niche vs Trent
Conclusion:
Go Colors looks good in the mirror but check the price tag before swiping your card 🛍️
✍️ Written by Prashant | 📅 July 4, 2025
Tags: Go Colors, Go Fashion, Bottomwear Market, Women Apparel, Smallcap Retail, Indian Fashion Brands, Go Fashion Analysis, Valuation, Growth Stocks, EduInvesting
