Go Fashion (India) Limited Just Missed EPS By 18%: Here's What Analysts Think Will Happen Next

Go Fashion (India) Limited (NSE:GOCOLORS) last week reported its latest first-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It was not a great result overall. While revenues of ₹2.2b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 18% to hit ₹3.14 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following the latest results, Go Fashion (India)'s eight analysts are now forecasting revenues of ₹8.75b in 2027. This would be a modest 4.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 13% to ₹11.50. Before this earnings report, the analysts had been forecasting revenues of ₹8.75b and earnings per share (EPS) of ₹10.06 in 2027. Although the revenue estimates have not really changed, we can see there's been a nice gain to earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

See our latest analysis for Go Fashion (India)

The consensus price target rose 6.0% to ₹364, suggesting that higher earnings estimates flow through to the stock's valuation as well. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Go Fashion (India), with the most bullish analyst valuing it at ₹450 and the most bearish at ₹282 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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 2027 expected to display 6.0% growth on an annualised basis. This is compared to a historical growth rate of 16% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 17% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Go Fashion (India).

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Go Fashion (India) following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Go Fashion (India)'s revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Go Fashion (India) going out to 2029, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Go Fashion (India) (2 are concerning) you should be aware of.

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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.