Earnings Release: Here's Why Analysts Cut Their Go Fashion (India) Limited (NSE:GOCOLORS) Price Target To ₹857

Shareholders might have noticed that Go Fashion (India) Limited (NSE:GOCOLORS) filed its second-quarter result this time last week. The early response was not positive, with shares down 6.4% to ₹599 in the past week. The result was positive overall - although revenues of ₹2.2b were in line with what the analysts predicted, Go Fashion (India) surprised by delivering a statutory profit of ₹4.04 per share, modestly greater than expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following the latest results, Go Fashion (India)'s eight analysts are now forecasting revenues of ₹9.03b in 2026. This would be a reasonable 4.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 6.2% to ₹17.36. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹9.31b and earnings per share (EPS) of ₹18.11 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

View our latest analysis for Go Fashion (India)

It'll come as no surprise then, to learn that the analysts have cut their price target 20% to ₹857. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Go Fashion (India) at ₹1,105 per share, while the most bearish prices it at ₹700. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Go Fashion (India) shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Go Fashion (India)'s revenue growth is expected to slow, with the forecast 8.6% annualised growth rate until the end of 2026 being well below the historical 12% p.a. growth over the last three years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 19% annually. 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 most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Go Fashion (India) going out to 2028, and you can see them free on our platform here.

We also provide an overview of the Go Fashion (India) Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.