Go Fashion (India) limited is one of the largest women's bottom-wear brand in India, with a market share of approximately 8% in the branded women's bottom-wear market in Fiscal 2020. 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. They are engaged in the development, design, sourcing, marketing and retailing a range of women's bottom-wear products under the brand, 'Go Colors'. Company 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. They were 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. Go Fashion offered one of the widest portfolios of bottom-wear products among women's apparel retailers in India in terms of colours and styles, 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, athleisure, denims, plus sizes and girlswear making the portfolio 'universal' and for every occasion. As of September 30, 2021, they sold bottom-wear in over 50 styles in more than 120 colours. They design the products to cater to women across all age groups and girls and fits that are suitable to various body types and physiques. The Company has 459 exclusive brand outlets - EBOs (including 12 kiosks operated on a 'company owned and company operated' ('COCO') model and 11 franchise stores) that are spread across 23 states and union territories in India, as of September 30, 2021. Company's cluster-based approach to opening and operating EBOs allows them to pursue the COCO model which results in better operational control and greater store profitability. Company's experience, retailing through EBOs creates better brand recall. Company's large format stores (LFSs) have grown from 925 LFSs, as of March 31, 2019 to 1,419 LFSs, as of March 31, 2020 and further increased to 1,267 LFSs, as of March 31, 2021 while as of September 30, 2021 they operated in 1,270 such stores. In addition, they sell company's products through their website and online marketplaces and through multi-brand outlets ('MBOs'). Company's in-house design and merchandising team designs and develops bottom-wear products across categories and the manufacturing network undertaken through 73 suppliers and 42 job- workers spread across 11 states and union territories, as of September 30, 2021. As per financial performance, Go Fashion (India) Limited has posted total income/net profits of Rs 290.97 Cr / Rs 30.94 Cr (FY19), Rs 396.84 Cr / Rs 52.63 Cr (FY20), Rs 282.25 Cr / Rs (3.54) Cr (FY21) and Rs 40.29 Cr / Rs (18.99) Cr (Q1 F22). So company has posted good growth till pandemic started, but still not able to reach pre-covid level sales. They have posted an average EPS of Rs. 4.01 and average RoNW of 7.76% for last 3 fiscals. Issue is priced at a P/BV of 13.65 as per NAV of 50.56 on 30.06.21. As Company is making losses, so there is no measure to check, if it is fairly price or not. As per RHP, Comparison between listed peers are shown in above table. On BRLM's front, three lead manager is associated with this IPO, and have handled around 56 IPO in last three fiscals. From last ten IPOs, three is opened below issue price and remaining are opened above issue on the day of listing. As of now, six are trading below issue price and other are trading above issue price. ( As on 12.11.21) As per financials, Go fashion Limited has shown sales growth till the pandemic started, RoNW is (1.25)%. Company is in branded garment segment, specifically women's bottom wear and has very aggressive expansion plan. This sector is expected to grow at good rate and its highly competitive segment with local and branded players. Performance of BRLM is poor. So, we are giving NEUTRAL rating to this IPO.
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