Stock to buy for long-term: Anand Rathi sees 45% upside in fashion stock after Q3 results 2025

Brokerage firm Anand Rathi, in its new report, suggested Go Fashion (India) stock to buy for long term. The brokerage firm has given the target price of ₹1,295, with an upside potential up to 45 per cent.

“We retain our Buy, at a lower 12-mth TP of Rs.1,295, 18x FY27e EV/EBITDA. The core product range, higher gross margin and return ratios make it a good long-term investment,” the brokerage firm said in its report.

Go Fashion (India) Limited, a women’s bottomwear brand in India engaged in the development, design, sourcing, marketing and retailing a range of women’s bottom-wear products under the brand, ‘Go Colors’ announced its unaudited Financial Results for the quarter and nine months ended 31st December 2024, on January 25.

Go Fashion Q3 results highlights

The fashion company posted a 6 per cent rise in its profit after tax (PAT) to ₹74 crore. Meanwhile, revenue from operations saw a significant growth of 11 per cent to ₹643 crore. EBITDA for the December quarter grew by 9 per cent to ₹206 crore.

“We at Go Colors continue to out-perform expectations and despite the soft demand environment we have continued to maintain our growth trajectory. Revenue from operations during 9M FY25 grew by 11% to Rs. 643 crores, and EBITDA grew by 9% to Rs. 206 cr," said Gautam Saraogi, CEO, Go Fashion (India) Limited.

“Go Fashion’s standalone Q3 6.2/3.3/3.9% y/y growth in sales/EBITDA/ PAT was anaemic but decent in the context of the weak demand situation. SSSG/SCSG was flat/4.8%. The gross margin rose 264bps y/y to 64.1%, led largely by low-cost inventory (but also by the favourable product mix and higher EBO sales). Higher expenses, though, squeezed the EBITDA margin 91bps y/y,” the brokerage firm said.

The fashion company added a net of 61 new stores, bringing the total store count to 775 stores. For the full year FY25, the company plans to do a total of 80-90 net additions. Going forward it plans to add between 120 - 150 stores per year.