Go Fashion (India) Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Shareholders of Go Fashion (India) Limited (NSE:GOCOLORS) will be pleased this week, given that the stock price is up 11% to ₹1,159 following its latest quarterly results. Revenues were ₹2.2b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of ₹5.30 were also better than expected, beating analyst predictions by 16%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Go Fashion (India)

After the latest results, the seven analysts covering Go Fashion (India) are now predicting revenues of ₹8.99b in 2025. If met, this would reflect a solid 13% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 22% to ₹19.30. In the lead-up to this report, the analysts had been modelling revenues of ₹8.98b and earnings per share (EPS) of ₹19.19 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of ₹1,298, suggesting that the company has met expectations in its recent result. 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. There are some variant perceptions on Go Fashion (India), with the most bullish analyst valuing it at ₹1,377 and the most bearish at ₹1,200 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. 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 2025 expected to display 18% growth on an annualised basis. This is compared to a historical growth rate of 29% over the past three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 20% annually. Factoring in the forecast slowdown in growth, it looks like Go Fashion (India) is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Go Fashion (India). Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Go Fashion (India) going out to 2027, and you can see them free on our platform here..

Even so, be aware that Go Fashion (India) is showing 1 warning sign in our investment analysis , you should know about...

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com