Stocks to buy: Go Fashion India Ltd | Boosting omnichannel expansions

The Go Colors brand, which sells women's bottom-wear clothing, is boosting omnichannel engagements for a seamless consumer experience, building on a technology-driven growth strategy to reach consumers in Tier-I to Tier-III cities, and realising its expansion plans for current and emerging markets, according to a statement issued after the opening of its 500th exclusive brand outlet in India. Our expert team recommends buying this stock with a target price of Rs. 1600. 

The following are some important catalysts for an uptick in the business: 
Go Fashion is one of India's largest Women Bottom Wear (WBW) brands, accounting for around 8% of the branded WBW market.

1)The WBW market in India is estimated to develop at a CAGR of 12.4% between 2020 and 25 to reach Rs243 billion by FY25. Over the same time period, branded WBW is predicted to develop at a faster CAGR of 20.5%, accounting for 47% of the entire WBW market. Go Fashion is expected to benefit from the formalisation of the branded WBW industry, which was formerly a highly fragmented space dominated by unorganised companies.

2) It has a large sourcing and manufacturing network of 81 suppliers and 49 job workers scattered over 11 states and Uts, and offers over 50 styles of WBW in over 150 colours.

3) The company operates 533 EBOs in 23 states and UTs, as well as 1597 LFs (Large Format stores) in 31 states and UTs. It also has a 99000 square foot warehouse in Tirupur, Tamil Nadu. It has design and development capabilities in-house.

4) The Company has acquired a new warehouse facility in Bhiwadi measuring 12,177 square feet, which will allow it to capture a larger market share in the rapidly rising Western region.

5) The company has aggressive expansion plans, with 30 EBO outlets opened in Q1FY23 and expects to add 120-130 locations each year in the medium term, with expanding footprints across geographies.

6) The company will contact customers through several channels and is developing a technology-driven growth plan. Online sales already account for 3.1% of total income, and this figure is expected to rise in the future years.