Motilal Oswal has issued a buy recommendation for Go Fashion India with a target price of ₹450 in its research report dated June 19, 2026. According to the brokerage's analysis, the stock presents attractive valuations at 15x TTM pre-Ind AS EV/EBITDA despite trimming revenue estimates by 3-5% for FY27/28 to reflect slower recovery trends.
The company demonstrated sequential improvement in retail demand during Q1FY27, with same-store sales growth (SSSG) recovering gradually, albeit remaining negative. As reported by Motilal Oswal, management expects FY27 revenue growth to return to single digits, supported by improving footfalls and consumer sentiment. The company is undertaking a comprehensive network-led reset through store consolidation, merchandising upgrades, and targeted brand investments.
Early results from the network reset strategy are showing encouraging signs, with larger-format stores delivering 10-20% higher customer acquisition than the legacy network. According to Motilal Oswal's interaction with management on June 18, 2026, the transition remains execution-intensive but management expects demand migration to larger formats to improve throughput, productivity, and unit economics over time.
The company's product diversification continues to reduce dependence on leggings, with newer categories now contributing more than 60% of the portfolio. As reported by Motilal Oswal, this broadens the addressable market and creates additional growth levers beyond the core category. The diversification strategy is part of the company's comprehensive approach to market expansion and revenue diversification.
Despite trimming revenue estimates, Motilal Oswal maintains its buy rating based on improving demand, network optimization, and margin recovery providing a credible path to earnings recovery. The brokerage's target price of ₹450 is based on 15x pre-Ind AS FY28 EV/EBITDA valuation methodology, reflecting confidence in the company's strategic initiatives and operational improvements.
