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CAMPUS - Fundamental Analysis: Financial Health & Valuation

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Rating: 3.9

Last Updated Time : 19 Mar 26, 07:10 pm

Fundamental Rating: 3.9

Stock Code CAMPUS Market Cap 7,003 Cr. Current Price 229 ₹ High / Low 304 ₹
Stock P/E 49.7 Book Value 26.0 ₹ Dividend Yield 0.44 % ROCE 20.1 %
ROE 17.2 % Face Value 5.00 ₹ DMA 50 255 ₹ DMA 200 266 ₹
Chg in FII Hold 0.16 % Chg in DII Hold -0.11 % PAT Qtr 63.7 Cr. PAT Prev Qtr 20.1 Cr.
RSI 27.7 MACD -8.78 Volume 2,31,885 Avg Vol 1Wk 2,21,797
Low price 210 ₹ High price 304 ₹ PEG Ratio 13.9 Debt to equity 0.48
52w Index 20.2 % Qtr Profit Var 37.0 % EPS 4.62 ₹ Industry PE 34.1

📊 Financials

  • Revenue Growth: PAT improved from 20.1 Cr. to 63.7 Cr., showing strong sequential growth
  • Profit Margins: EPS at 4.62 ₹, modest relative to valuation
  • Debt Ratios: Debt-to-Equity 0.48, moderate leverage
  • Cash Flows: Supported by consumer demand in footwear, but cyclical
  • Return Metrics: ROE 17.2%, ROCE 20.1% — decent efficiency

💹 Valuation

  • P/E Ratio: 49.7 (premium vs Industry PE 34.1)
  • P/B Ratio: ~8.8 (high, reflects market optimism)
  • PEG Ratio: 13.9 (suggests significant overvaluation relative to growth)
  • Intrinsic Value: Current price (229 ₹) below DMA 50 (255 ₹) & DMA 200 (266 ₹), showing technical weakness

🏢 Business Model & Competitive Advantage

  • Leading sports and casual footwear brand in India
  • Competitive advantage in brand recognition and distribution network
  • Strong demand in affordable footwear segment
  • Profitability metrics moderate compared to valuation

📈 Entry Zone Recommendation

  • Entry Zone: 220–235 ₹ (near support levels, RSI at 27.7 indicates oversold)
  • Long-Term Holding: Suitable for investors seeking consumer brand exposure, but caution due to stretched valuation

✅ Positive

  • Strong sequential PAT growth
  • FII holding increased (+0.16%)
  • Brand strength in footwear market
  • Moderate debt-to-equity ratio (0.48)

⚠️ Limitation

  • High P/E ratio compared to industry
  • PEG ratio suggests significant overvaluation
  • Stock trading below DMA 50 & 200, showing weakness

📉 Company Negative News

  • DII holding decreased (-0.11%)
  • Technical weakness with MACD negative (-8.78)

📈 Company Positive News

  • FII holding increased (+0.16%)
  • Quarterly PAT improved significantly

🏭 Industry

  • Footwear industry growing steadily with rising consumer demand
  • Industry PE at 34.1, Campus trades at a premium

🔎 Conclusion

Campus Activewear is a strong consumer brand with growing demand in the footwear segment. While profitability has improved, valuations are stretched with a P/E of 49.7 and PEG of 13.9. Entry around 220–235 ₹ may be considered, but long-term investors should be cautious due to premium valuation and technical weakness, while relying on brand-driven growth potential.

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