Analysts Have Been Trimming Their Go Fashion (India) Limited (NSE:GOCOLORS) Price Target After Its Latest Report

There's been a notable change in appetite for Go Fashion (India) Limited (NSE:GOCOLORS) shares in the week since its quarterly report, with the stock down 11% to ₹866. It was a credible result overall, with revenues of ₹2.1b and statutory earnings per share of ₹4.50 both in line with analyst estimates, showing that Go Fashion (India) is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Go Fashion (India) after the latest results.

Check out our latest analysis for Go Fashion (India)

Following the latest results, Go Fashion (India)'s eight analysts are now forecasting revenues of ₹10.1b in 2026. This would be a huge 21% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 39% to ₹22.36. Before this earnings report, the analysts had been forecasting revenues of ₹10.5b and earnings per share (EPS) of ₹24.32 in 2026. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

It'll come as no surprise then, to learn that the analysts have cut their price target 5.8% to ₹1,237. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Go Fashion (India) analyst has a price target of ₹1,490 per share, while the most pessimistic values it at ₹1,000. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Go Fashion (India)'s revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 16% growth on an annualised basis. This is compared to a historical growth rate of 23% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 22% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Go Fashion (India).

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Go Fashion (India). On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Go Fashion (India)'s future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Go Fashion (India) analysts - going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Go Fashion (India)'s Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.