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Go Fashion (India) Limited 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. It is among the few apparel companies in India to have identified the market opportunity in women’s bottom-wear and have acted as a ‘category creator’ for bottom-wear. It was the first company to launch a brand exclusively dedicated to women’s bottom-wear category and have leveraged this advantage to create a direct-to-consumer brand with a diversified and differentiated product portfolio of premium quality products at competitive prices. Company’s bottom-wear products, which include churidars, leggings, dhotis, harem pants, patiala, palazzos, culottes, pants, trousers and jeggings, are sold across multiple categories such as ethnic wear, western wear, fusion wear, atleisure, denims, plus sizes and girls wear making their portfolio ‘universal’ and for every occasion.

* The women’s apparel market is estimated to be approximately 36% of the total apparel market while the women’s bottom-wear market contributed 8.3% of women’s apparel market in Fiscal 2020

* The women’s clothing market in India has evolved in the past decade from the traditional one-piece apparel to a two-piece and mix-and-match apparel, with bottom-wear becoming an essential category.

* Company serve its customers primarily through its extensive network of 459 EBOs (Exclusive Brand Outlets) that are spread across 23 states and union territories in India, as of September 30, 2021.

* Company have its in-house design and merchandising team designs and develops bottom-wear products across categories with their deep understanding of consumers’ requirements.

Financials and Outlook:

The company has mixed set on financials over the last three years where the company's revenue grew in FY20 and fell back in the year FY21. However, the fall in revenue can be due to COVID-19. Profit also turned negative in a recent year where the company reported a loss of Rs (3.53) cr in FY21 VS a profit of Rs 52.63 cr in FY20. Go Colors has a strong brand value but has fluctuating revenues and the company moved into losses in FY21 but as the number of working women is increasing along with the evolving fashion trend it is expected that the company has strong growth momentum. The company has a mixed bag of financials and IPO is arriving at a P/BV of 13.65 based on its NAV of Rs. 50.56 as of Q1FY22, which seems to be attractively priced for the investors. Thus we assign a "SUBSCRIBE" rating for listing gain and long term.

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