CAMPUS - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

🧠 How I’m Thinking About This

You’re asking for a full-spectrum fundamental analysis of Campus Activewear Ltd (CAMPUS), a leading athleisure and sports footwear brand in India. I’m evaluating its financial strength, valuation metrics, business model, and technical indicators to determine its long-term investment potential and ideal entry point.

📊 Core Financials Breakdown

Profitability & Growth

EPS: ₹3.86 — modest earnings base

PAT Qtr: ₹22.2 Cr vs ₹35.0 Cr — -12.5% QoQ, indicating margin pressure or seasonal softness

ROE: 17.2%, ROCE: 20.1% — solid return metrics for a consumer brand

Debt-to-equity: 0.31 — moderate leverage, manageable for retail expansion

Dividend & Cash Flow

Dividend Yield: 0.35% — minimal, reinvestment-focused

Cash flows are stable, supported by strong brand recall and retail footprint

💰 Valuation Indicators

Metric Value Interpretation

P/E Ratio 73.4 Overvalued vs industry PE of 49.5

P/B Ratio ~11.5 High premium to book value

PEG Ratio 20.6 Extremely overvalued relative to earnings growth

Intrinsic Value ~₹260–₹270 Trading slightly above fair value

Valuation is stretched, driven by brand premium and growth expectations, but not fully supported by earnings momentum.

👟 Business Model & Competitive Edge

Industry: Footwear & athleisure — brand-driven, discretionary

Moat

Largest sports footwear brand in India by volume

Strong omnichannel presence across Tier 1–3 cities

Focused product innovation and youth-centric branding

Catalysts

GST rate cut on footwear has boosted demand

1

DII holdings up (+0.67%) — rising domestic institutional confidence

Expansion into premium segments and international markets underway

Campus is well-positioned to benefit from India’s rising youth population and lifestyle shifts toward athleisure.

📉 Technical & Entry Zone

Current Price: ₹284

DMA 50/200: Trading slightly above both — mildly bullish

MACD: +2.54 — positive momentum

RSI: 65.3 — nearing overbought zone

📌 Suggested Entry Zone: ₹260–₹270

This range offers a better margin of safety and aligns with intrinsic value and technical support.

🕰️ Long-Term Holding Guidance

Hold if already invested, especially for brand strength and retail expansion

Buy on dips near ₹270 if bullish on discretionary consumption and youth fashion

2026 Target Price: ₹320–₹340 based on projected earnings and sector growth

2030 Forecast: ₹450+ if margins and volumes scale sustainably

⭐ Fundamental Rating

3.7

1

www.livemint.com

Edit in a page