Go Fashion Q1 Review - Great Quarter, Decent Internals, Good Investments: ICICI Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.We like the increased ad-spends in the quarter (4.9% of sales versus typical 2%) – these are good spends and we expect (good) brands to increase it in the near-term given most have under-invested for last two years; that said, only limited ones have the required headroom given the inflationary pressure. Go Fashions India Ltd.'s Q1 FY23 revenue print of Rs 1.65 billion (up 42% QoQ and 16% above Q3 FY22) was great. Higher growth in large format stores (gross margin dilutive; salience of 23.1% versus 17.6% QoQ) and sharp increase in other opex (mainly ad-spends) led to (reported) Ebitda margin print of 32.1% (Q3 FY22: 36.7%). We believe the brand has been able to create a replicable template of diverse product portfolio along with a highly efficient operating model of exclusive brand outlets. Going forward, there is comfort on (product-level) margins and continued thrust on EBO store addition. Further, there seems to continued success in new products outside of core products..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Go Fashion Q1 Review - Great Quarter, Decent Internals, Good Investments: ICICI Securities

Go Fashion Q1 Review - Great Quarter, Decent Internals, Good Investments: ICICI Securities

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