Consumer Analyst / Channel Surveillance Specialist, Trudence Capital Advisors

Pranav Bhavsar

Consumer Analyst / Channel Surveillance Specialist

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

Equity Bottom-Up

<ul>
<li>In this Insight, we highlight industry and company-specific developments based on the annual reports of various companies related to the apparel industry.</li>
<li>The industry has encountered challenges, primarily due to a slowdown in demand and rising inflation. Most companies are now hoping for a turnaround.</li>
<li>Companies in Focus <a href="https://www.smartkarma.com/entities/aditya-birla-fashion-and-retail-ltd" target="_blank" data-smartkarma-citation="entities:19048:1" rel="noopener">Aditya Birla Fashion and Retail Ltd (ABFRL IN)</a>, <a href="https://www.smartkarma.com/entities/arvind-fashions" target="_blank" data-smartkarma-citation="entities:28960:1" rel="noopener">Arvind Fashions (ARVINDFA IN)</a>, <a href="https://www.smartkarma.com/entities/vedant-fashions-limited" target="_blank" data-smartkarma-citation="entities:34260:1" rel="noopener">Vedant Fashions (MANYAVAR IN)</a>, <a href="https://www.smartkarma.com/entities/go-fashion-india-private-limited" target="_blank" data-smartkarma-citation="entities:36625:1" rel="noopener">Go Fashion India (GOCOLORS IN)</a> and <a href="https://www.smartkarma.com/entities/credo-brands-marketing-limited" target="_blank" data-smartkarma-citation="entities:40400:1" rel="noopener">Credo Brands Marketing (CREDO IN)</a>.  </li>
</ul>


In this Insight, we highlight industry and company-specific developments based on the annual reports of various companies related to the apparel industry.
The industry has encountered challenges, primarily due to a slowdown in demand and rising inflation. Most companies are now hoping for a turnaround.
Companies in Focus Aditya Birla Fashion and Retail Ltd (ABFRL IN), Arvind Fashions (ARVINDFA IN), Vedant Fashions (MANYAVAR IN), Go Fashion India (GOCOLORS IN) and Credo Brands Marketing (CREDO IN).  


Namaste India 🙏 | Catching up with Fashion

External broker reports(aggregated public sources), Emkay Global Financial Services Limited

Emkay

External broker reports(aggregated public sources)

Emkay Global Financial Services Limited

Emkay Global Financial Services Ltd. is a leader in the financial services sector, actively creating wealth for our clients for over two decades. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>Go Fashion We hosted GOCOLORS (GO) for an Asia roadshow.</li><li>GO remains confident of delivering medium-term revenue CAGR of &gt;20%, with SSG recovery also helping EBITDA margin get back to the 20-21% range (vs 18% in FY24).</li><li>GO is already witnessing a SSG revival in Q2TD (vs flat SSG over the past 5 quarters) and remains hopeful of ending H2 on an even stronger note (~5%).</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Go Fashion We hosted GOCOLORS (GO) for an Asia roadshow.GO remains confident of delivering medium-term revenue CAGR of &gt;20%, with SSG recovery also helping EBITDA margin get back to the 20-21% range (vs 18% in FY24).GO is already witnessing a SSG revival in Q2TD (vs flat SSG over the past 5 quarters) and remains hopeful of ending H2 on an even stronger note (~5%).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Go Fashion - SSG Revival and Improved Cash Flows to Drive Re-Rating; Reiterate BUY

<ul><li>We visited multiple Go Colors (GO) stores across Mumbai to validate our thesis around the bottom-wear category and its TAM.</li><li>Our conviction on category relevance got strengthened when we saw customers walking in with their tops to find their perfect color match.</li><li>GO’s expanding portfolio (&gt;50 styles) enables a strong cross/up-selling opportunity and TAM expansion with focus on Active/Denims/Girls/Plus categories, reflecting in healthy units per bill of ~2.3. We were pleasantly surprised with the kind of traction GO receives in both premium locations (Lokhandwala/Linking Road) and mass hubs (Borivali/ Dadar), suggesting that its consumers are across income brackets.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We visited multiple Go Colors (GO) stores across Mumbai to validate our thesis around the bottom-wear category and its TAM.Our conviction on category relevance got strengthened when we saw customers walking in with their tops to find their perfect color match.GO’s expanding portfolio (&gt;50 styles) enables a strong cross/up-selling opportunity and TAM expansion with focus on Active/Denims/Girls/Plus categories, reflecting in healthy units per bill of ~2.3. We were pleasantly surprised with the kind of traction GO receives in both premium locations (Lokhandwala/Linking Road) and mass hubs (Borivali/ Dadar), suggesting that its consumers are across income brackets.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Go Fashion - SSG Turnaround in Sight; Other Concerns Exaggerated; BUY

<ul>
<li>As we progress in earnings season in line with our previous Playbook, this one focuses on select consumer names. </li>
<li>Names discussed include <a href="https://www.smartkarma.com/entities/titan-co-ltd" target="_blank" data-smartkarma-citation="entities:12630:1" rel="noopener">Titan Co Ltd (TTAN IN)</a>, <a href="https://www.smartkarma.com/entities/vedant-fashions-limited" target="_blank" data-smartkarma-citation="entities:34260:1" rel="noopener">Vedant Fashions (MANYAVAR IN)</a> , <a href="https://www.smartkarma.com/entities/go-fashion-india-private-limited" target="_blank" data-smartkarma-citation="entities:36625:1" rel="noopener">Go Fashion India (GOCOLORS IN)</a> &amp; <a href="https://www.smartkarma.com/entities/shoppers-stop-ltd" target="_blank" data-smartkarma-citation="entities:12804:1" rel="noopener">Shoppers Stop (SHOP IN)</a>.  </li>
<li>Most names expect a soft Q1, and SHOP is targeting the most aggressive expansion.</li>
</ul>


As we progress in earnings season in line with our previous Playbook, this one focuses on select consumer names. 
Names discussed include Titan Co Ltd (TTAN IN), Vedant Fashions (MANYAVAR IN) , Go Fashion India (GOCOLORS IN) &amp; Shoppers Stop (SHOP IN).  
Most names expect a soft Q1, and SHOP is targeting the most aggressive expansion.


Earnings Playbook | Shoppers Stop (SHOP IN) | Target of Quadrupling Network

<ul><li>Emkay Global Financial's research report onGo Fashion GO’s Q4 print was weak, albeit results were largely in line and outperformance (vs. peers) continued with 15% topline growth.</li><li>SSG was low at +1%/0% in Q4/FY24 and GO is targeting 2-3% SSG for Q1</li><li>. Given the muted macros, FY24 has been a year of WC optimization, as GO generated Rs1.1bn operating cash vs. cash-breakeven in FY23, which addresses a key concern.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Emkay Global Financial's research report onGo Fashion GO’s Q4 print was weak, albeit results were largely in line and outperformance (vs. peers) continued with 15% topline growth.SSG was low at +1%/0% in Q4/FY24 and GO is targeting 2-3% SSG for Q1. Given the muted macros, FY24 has been a year of WC optimization, as GO generated Rs1.1bn operating cash vs. cash-breakeven in FY23, which addresses a key concern.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Go Fashion - Weak Trends, but Outperformance Endures; Maintain BUY

India

Go Fashion (India) Limited is a leading Indian women's bottom wear brand, operating under the brand name 'Go Colors'. The company designs, develops, sources, markets, and retails a wide range of women's bottom wear products, including churidars, leggings, palazzos, culottes, pants, trousers, and jeggings, catering to ethnic, western, fusion, and athleisure segments. Go Fashion was founded in 2010 and is headquartered in Chennai, Tamil Nadu, India.

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Go Fashion (GOCOLORS IN)

Namaste India 🙏 | Catching up with Fashion

Exploring the challenges and growth projections of the Indian apparel industry, with companies like Aditya Birla Fashion and Retail Ltd and Arvind...

Pranav Bhavsar

Go Fashion - SSG Revival and Improved Cash Flows to Drive Re-Rating; Reiterate BUY

GO remains confident of delivering medium-term revenue CAGR of >20%, with SSG recovery also helping EBITDA margin get back to the 20-21% range (vs...

Emkay

Go Fashion - SSG Turnaround in Sight; Other Concerns Exaggerated; BUY

We visited multiple Go Colors (GO) stores across Mumbai to validate our thesis around the bottom-wear category and its TAM.

Emkay

Earnings Playbook | Shoppers Stop (SHOP IN) | Target of Quadrupling Network

We focus on select consumer names in the earnings season. Most names expect a soft Q1, with Shoppers Stop targeting aggressive expansion.

Pranav Bhavsar

Go Fashion - Weak Trends, but Outperformance Endures; Maintain BUY

Emkay Global Financial's research report onGo Fashion GO’s Q4 print was weak, albeit results were largely in line and outperformance (vs. peers)...

Emkay

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Namaste India 🙏 | Catching up with Fashion

​Exploring the challenges and growth projections of the Indian apparel industry, with companies like Aditya Birla Fashion and Retail Ltd and Arvind...

Pranav Bhavsar

Go Fashion - SSG Revival and Improved Cash Flows to Drive Re-Rating; Reiterate BUY

GO remains confident of delivering medium-term revenue CAGR of >20%, with SSG recovery also helping EBITDA margin get back to the 20-21% range (vs...

Emkay

Go Fashion - SSG Turnaround in Sight; Other Concerns Exaggerated; BUY

We visited multiple Go Colors (GO) stores across Mumbai to validate our thesis around the bottom-wear category and its TAM.

Emkay

Earnings Playbook | Shoppers Stop (SHOP IN) | Target of Quadrupling Network

We focus on select consumer names in the earnings season. Most names expect a soft Q1, with Shoppers Stop targeting aggressive expansion.

Pranav Bhavsar

Go Fashion - Weak Trends, but Outperformance Endures; Maintain BUY

Emkay Global Financial's research report onGo Fashion GO’s Q4 print was weak, albeit results were largely in line and outperformance (vs. peers)...

Emkay

Exploring the challenges and growth projections of the Indian apparel industry, with companies like Aditya Birla Fashion and Retail Ltd and Arvind...