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CAMPUS - Fundamental Analysis: Financial Health & Valuation

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Rating: 3.4

Last Updated Time : 04 May 26, 11:57 am

Fundamental Rating: 3.4

Stock Code CAMPUS Market Cap 7,584 Cr. Current Price 248 ₹ High / Low 304 ₹
Stock P/E 53.8 Book Value 26.0 ₹ Dividend Yield 0.40 % ROCE 20.1 %
ROE 17.2 % Face Value 5.00 ₹ DMA 50 246 ₹ DMA 200 259 ₹
Chg in FII Hold -0.08 % Chg in DII Hold -0.11 % PAT Qtr 63.7 Cr. PAT Prev Qtr 20.1 Cr.
RSI 53.3 MACD 3.05 Volume 1,12,747 Avg Vol 1Wk 1,34,648
Low price 215 ₹ High price 304 ₹ PEG Ratio 15.1 Debt to equity 0.48
52w Index 36.9 % Qtr Profit Var 37.0 % EPS 4.62 ₹ Industry PE 35.2

📊 Campus Activewear Ltd (CAMPUS) shows moderate fundamentals with ROCE at 20.1% and ROE at 17.2%, reflecting decent efficiency. Debt-to-equity at 0.48 is manageable, but EPS of 4.62 ₹ is weak relative to valuations. Quarterly PAT rose sharply (63.7 Cr. vs 20.1 Cr.), showing strong earnings momentum, though sustainability remains uncertain. Valuations are stretched with a P/E of 53.8 vs industry average of 35.2, and PEG ratio of 15.1 indicates expensive growth. Dividend yield of 0.40% is negligible. Overall, CAMPUS benefits from strong brand presence in the footwear segment, but valuation risks and weak institutional flows limit upside potential.

💡 Entry Zone: 240–245 ₹ (near 50 DMA support).

📈 Long-Term Holding Guidance: Suitable for cautious investors. Accumulate gradually near support zones and hold for 18–24 months, while monitoring earnings growth and valuation compression.

✅ Positive

  • ROCE (20.1%) and ROE (17.2%) highlight moderate efficiency.
  • Quarterly PAT growth (63.7 Cr. vs 20.1 Cr.) shows strong rebound.
  • Stock trading near 50 DMA (246 ₹), showing short-term support.

⚠️ Limitation

  • High P/E (53.8) vs industry average (35.2).
  • PEG ratio of 15.1 indicates expensive growth.
  • EPS of 4.62 ₹ is weak relative to market cap.
  • Dividend yield of 0.40% offers negligible income support.
  • Institutional holdings declined (FII -0.08%, DII -0.11%).

📉 Company Negative News

  • Decline in institutional holdings (FII and DII).
  • Valuation concerns due to stretched P/E and PEG ratios.

📈 Company Positive News

  • Quarterly PAT surged significantly, showing strong earnings momentum.
  • MACD (3.05) and RSI (53.3) indicate neutral-to-positive momentum.

🏭 Industry

  • Footwear and apparel sector benefits from rising consumer demand and urban lifestyle trends.
  • Industry P/E at 35.2 highlights moderate valuations compared to CAMPUS’s premium.

🔎 Conclusion

⚖️ CAMPUS is a moderately strong company with decent efficiency and strong quarterly profit growth, but stretched valuations and weak institutional flows limit upside. Entry near 240–245 ₹ offers a favorable risk-reward setup. Best suited for cautious long-term investors willing to accumulate gradually and hold for 18–24 months, with profit booking near 260–265 ₹ if resistance levels are tested.

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