CAMPUS - Fundamental Analysis: Financial Health & Valuation

📈 Positive

• ROCE of 20.1% and ROE of 17.2% — healthy return ratios for a consumer brand.
• Debt-to-equity ratio of 0.31 — moderate leverage, indicating financial discipline.
• Trading near DMA 50 and DMA 200 — suggests technical support and consolidation zone.
• MACD positive at 1.86 and RSI at 52.4 — neutral to slightly bullish technical indicators.
• Stock up 53.8% over the past year — reflects investor interest and brand momentum.

⚠️ Limitation

• P/E ratio of 72.1 vs industry average of 42.2 — significantly overvalued.
• PEG ratio of 20.2 — valuation far exceeds earnings growth expectations.
• Book Value of ₹24.8 vs current price of ₹279 — high P/B ratio.
• Dividend yield of 0.36% — modest for income-seeking investors.
• FII holding declined by 0.68% — reflects foreign investor caution.
• Volume below average — may indicate short-term market disinterest.

📉 Company Negative News

• Q2 PAT dropped to ₹22.2 Cr from ₹35.0 Cr — a 12.5% sequential decline.
• FII outflows and high valuation metrics raise concerns about near-term upside potential.

📢 Company Positive News

• Strong brand presence in the affordable sportswear and athleisure segment.
• Stock trading near key moving averages — potential for technical rebound.
• Steady DII interest with a 0.03% increase in holdings.

🏭 Industry

• Footwear and athleisure sector benefits from rising health consciousness and urban lifestyle trends.
• Industry P/E of 42.2 — Campus trades at a premium, reflecting growth expectations.
• Sector faces margin pressure due to raw material costs and competitive pricing.

🧾 Conclusion

• Business Model: Leading domestic sports and casual footwear brand targeting value-conscious urban youth.
• Competitive Advantage: Strong distribution network, brand recall, and focus on affordable athleisure.
• Entry Zone: ₹260–₹275 — near DMA support and consolidation range.
• Long-Term Holding: Suitable for growth-oriented investors with a 3–5 year horizon and appetite for consumer discretionary exposure.