Mehabe score: 2 G Factor: 2 Piotski Score: 3 The stock has a rating SELL. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 2 and Piotski score of 3.
Description
Incorporated in 2010, Go Fashion Limited (GFIL) is one of the largest women’s bottom-wear brands in India. The company is engaged in the development, design, sourcing, marketing, and retailing of a range of women’s bottom-wear products under the brand, ‘Go Colors’. The company offers one of the widest portfolios of bottom-wear products among women’s apparel retailers in terms of colors and styles. As of May 31, 2021, Go Colors sold bottom-wear in over 50 styles in more than 120 colors. Site:GOCOLORS Main Symbol:GOCOLORS
Stock trades at 1016.0, below its 50dma 1082.9 and below its 200dma 1187.38. The stock remains bearish on technicals
The 52 week high is at 1341.00 and the 52week low is at 912.05
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– Stock is trading at 19.39 times its book value
– has low interest coverage ratio.
– has a low return on equity of 10.61% for last 3 years.
-Earnings include an other income of Rs.31.58 Cr.
Competition
– The industry trades at a mean P/E of 29.9x. Jindal Worldwide trades at the industry’s max P/E of 79.04x. GOCOLORS trades at a P/E of x
– Industry’s mean G-Factor is 2.3 while the mean Piotski score is 9.0. GOCOLORS has a G-Factor of 2 and Piotski scoreof 3.
– Average 1 month return for industry is 9.9%. The max 1- month return was given by Jindal Worldwide: a return of 31.09 %
Quarterly Results
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Company reported operating profit of Rs 52.0 cr for period ended Dec 2021 and operating profit margin at 36.6 % for same period.
The EPS for quarter ended Dec 2021 is Rs 4.39 compared to Rs 6.2 for previous quarter ended Sep 2021.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 251.0 cr for period ended Mar 2021 vis-vis sales of Rs 392.0 cr for the period ended Mar 2020, a fall of 56.2%. The 3 year sales cagr stood at 9.9%.
Operating margins shrank to 19.0% for period ended Mar 2021 vis-vis 33.0% for period ended Mar 2020, contraction of 1400.0 bps.
Net Profit reported at Rs -4.0 cr for period ended Mar 2021 vis-vis sales of Rs 53.0 cr for the period ended Mar 2020, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 90.0 cr for period ended Mar 2021 vis-vis Rs 57.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -1.0% compared to 11.0% over the last 3 Years. – The stock has given a return of % on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is -36% vis-vis a compounded sales growth of 10% over the last 3 Years. – The compounded profit growth on a TTM basis is -107% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
Conclusion
– – Stock is trading at 19.39 times its book value
– has low interest coverage ratio.
– has a low return on equity of 10.61% for last 3 years.
-Earnings include an other income of Rs.31.58 Cr.
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 1082.9 and is trading at 1016.0. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
