Go Fashion (India) Limited Fundamental Analysis
Go Fashion (India) Limited (GOCOLORS.NS) shows weak financial fundamentals with a PE ratio of 34.18, profit margin of 7.06%, and ROE of 8.37%. The company generates $8.2B in annual revenue with strong year-over-year growth of 11.19%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze GOCOLORS.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakGOCOLORS.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateGOCOLORS.NS shows balanced valuation metrics.
Growth Score
ExcellentGOCOLORS.NS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentGOCOLORS.NS maintains a strong and stable balance sheet.
Profitability Score
WeakGOCOLORS.NS struggles to sustain strong margins.
Key Financial Metrics
Is GOCOLORS.NS Expensive or Cheap?
P/E Ratio
GOCOLORS.NS trades at 34.18 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, GOCOLORS.NS's PEG of -0.93 indicates potential undervaluation.
Price to Book
The market values Go Fashion (India) Limited at 2.93 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.30 times EBITDA. This is generally considered low.
How Well Does GOCOLORS.NS Make Money?
Net Profit Margin
For every $100 in sales, Go Fashion (India) Limited keeps $7.06 as profit after all expenses.
Operating Margin
Core operations generate 12.22 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.37 in profit for every $100 of shareholder equity.
ROA
Go Fashion (India) Limited generates $4.57 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Go Fashion (India) Limited produces operating cash flow of $931.63M, showing steady but balanced cash generation.
Free Cash Flow
Go Fashion (India) Limited produces free cash flow of $739.53M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $14.06 in free cash annually.
FCF Yield
GOCOLORS.NS converts 3.81% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
34.18
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.93
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.93
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.36
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.77
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.42
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How GOCOLORS.NS Stacks Against Its Sector Peers
| Metric | GOCOLORS.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 34.18 | 24.18 | Worse (Expensive) |
| ROE | 8.37% | 1179.00% | Weak |
| Net Margin | 7.06% | 2624.00% | Weak |
| Debt/Equity | 0.77 | 0.71 | Neutral |
| Current Ratio | 3.42 | 2.83 | Strong Liquidity |
| ROA | 4.57% | -8089.00% (disorted) | Weak |
GOCOLORS.NS outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Go Fashion (India) Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
109.83%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
71.66%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
235.73%
Industry Style: Cyclical, Growth, Discretionary
High Growth