CAMPUS - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.5

Campus Activewear has stylish returns and a nimble business model—but valuation wrinkles suggest a measured approach before jumping in. Let's lace up and run through the fundamentals

👟 Core Financial Highlights

EPS: ₹3.57 — modest earnings, appropriate for consumer discretionary segment.

PAT Qtr YoY Var: +1,347% — massive surge; however, prior base was likely abnormally low.

ROE: 29.3% | ROCE: 31.8% — excellent capital efficiency metrics; leaders in the segment.

Debt-to-Equity: 0.68 — manageable but worth monitoring for a retail-heavy business.

Dividend Yield: 0.26% — token payout, inline with reinvestment priorities.

📊 Valuation Snapshot

P/E: 77.1 vs Industry PE: 42.9 — significant premium, suggests growth is richly priced.

P/B Ratio unavailable due to missing book value—can't gauge asset backing precisely.

PEG Ratio: 1.86 — signals growth is healthy, but valuation is stretched.

Intrinsic Value Estimate: ₹240–₹260 — current price is above comfort zone, possibly overvalued unless momentum picks up.

🛍️ Business Model & Moat

Segment: Sportswear & athleisure, focused on affordable branded footwear.

Strengths

First-mover advantage in mass-premium Indian sneaker space.

Strong distribution footprint and brand recognition in Tier 2–4 towns.

Digital & D2C strategy complements offline presence.

Risks

Intense competition from global and domestic players.

Fashion cycle volatility and inventory management.

Valuation premium leaves little room for earnings disappointment.

📉 Technical & Sentiment Snapshot

RSI: 41.2 — approaching oversold zone, watch for reversal cues.

MACD: +0.35 — mild bullish crossover, though unconvincing.

Volume higher than 1-week average — signs of accumulation or volatility.

🎯 Suggested Entry Zone

₹240–₹260: Better risk-reward balance near estimated intrinsic zone.

Avoid chasing unless quarterly results or demand outlook beat expectations.

🧭 Long-Term Holding Outlook

May reward 3–5 year holders who

Believe in India's branded apparel shift and rising discretionary spends.

Back Campus to scale via new SKUs and wider channel penetration.

Anticipate sustained growth via brand equity and lifestyle positioning.

If you'd like to stack Campus against other players like Relaxo or Bata India, I can whip up a side-by-side to highlight brand strategy, financial fit, and runway ahead. Ready when you are. 🏃📈🩰

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