CAMPUS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | CAMPUS | Market Cap | 7,246 Cr. | Current Price | 237 ₹ | High / Low | 304 ₹ |
| Stock P/E | 51.4 | Book Value | 26.0 ₹ | Dividend Yield | 0.42 % | ROCE | 20.1 % |
| ROE | 17.2 % | Face Value | 5.00 ₹ | DMA 50 | 244 ₹ | DMA 200 | 257 ₹ |
| Chg in FII Hold | -0.08 % | Chg in DII Hold | -0.11 % | PAT Qtr | 63.7 Cr. | PAT Prev Qtr | 20.1 Cr. |
| RSI | 44.4 | MACD | -2.54 | Volume | 1,87,552 | Avg Vol 1Wk | 1,44,156 |
| Low price | 215 ₹ | High price | 304 ₹ | PEG Ratio | 14.4 | Debt to equity | 0.48 |
| 52w Index | 24.5 % | Qtr Profit Var | 37.0 % | EPS | 4.62 ₹ | Industry PE | 39.4 |
📊 Financial Overview: Campus Activewear Ltd (CAMPUS) has a market cap of ₹7,246 Cr. Quarterly PAT rose to ₹63.7 Cr from ₹20.1 Cr, showing strong growth momentum. Debt-to-equity ratio is 0.48, indicating moderate leverage. ROCE at 20.1% and ROE at 17.2% highlight decent efficiency. Cash flows remain supported by strong demand in footwear and sportswear, though profitability is still stabilizing.
💹 Valuation Indicators: Current P/E of 51.4 is above the industry average of 39.4, suggesting overvaluation. P/B ratio is ~9.1 (237 ÷ 26.0), which is elevated. PEG ratio of 14.4 indicates expensive growth. Intrinsic value appears lower than current price, making the stock richly valued despite sector potential.
🏭 Business Model & Advantage: Campus operates in footwear and sportswear, with competitive advantages in brand recognition, affordable pricing, and wide distribution. Its focus on athleisure and youth-centric products supports growth. However, competition from Bata, Adidas, Puma, and Nike limits pricing flexibility.
📈 Entry Zone: A favorable entry zone would be around ₹220–230, closer to its recent low of ₹215. Current price of ₹237 is slightly above fair value, so accumulation is better on dips.
⏳ Long-Term Holding Guidance: Campus is structurally strong with brand appeal and growing demand in sportswear. Long-term investors may hold for exposure to India’s rising athleisure market, but fresh entry should be cautious given stretched valuations and high PEG ratio.
Positive
- 🌟 Strong ROCE (20.1%) and ROE (17.2%).
- 🌟 Quarterly PAT growth from ₹20.1 Cr to ₹63.7 Cr.
- 🌟 Expanding presence in athleisure and sportswear market.
Limitation
- ⚠️ High P/E (51.4) compared to industry average (39.4).
- ⚠️ Elevated P/B ratio (~9.1).
- ⚠️ PEG ratio of 14.4 indicates expensive growth.
Company Negative News
- 📉 FII holdings reduced by 0.08% and DII holdings by 0.11%.
- 📉 Technical weakness with RSI at 44.4 and MACD negative (-2.54).
Company Positive News
- 📈 Quarterly PAT surged significantly.
- 📈 Strong demand outlook in footwear and athleisure.
- 📈 Expanding distribution network across India.
Industry
- 🏭 Footwear and sportswear industry in India is expanding with rising youth demand.
- 🏭 Industry P/E at 39.4 shows moderate valuation compared to Campus’s premium.
- 🏭 Competition remains strong with global and domestic brands.
Conclusion
✅ Campus Activewear is a growing player in footwear and sportswear with strong brand appeal and rising demand. However, valuations are stretched and technical indicators show weakness. Suitable for long-term holding, with accumulation recommended around ₹220–230 levels.
For deeper insights, you could explore a peer comparison or a technical chart analysis to complement this fundamental view.