CAMPUS - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 20 Dec 25, 11:15 pm

Fundamental Rating: 3.4

📊 Core Financials

• Quarterly PAT declined from 22.2 Cr. to 20.1 Cr. (-9.5%), showing short-term earnings pressure.
• ROE at 17.2% and ROCE at 20.1% indicate decent profitability and efficiency.
• Debt-to-equity ratio of 0.48 shows moderate leverage, manageable but worth monitoring.
• Dividend yield at 0.39% provides minimal shareholder returns.

💹 Valuation Indicators

• P/E Ratio: 65.1 vs Industry PE of 37.6 → Overvalued compared to peers.
• P/B Ratio: Current Price / Book Value ≈ 10.1 → Expensive relative to assets.
• PEG Ratio: 18.2 → Indicates weak growth outlook relative to valuation.
• Intrinsic Value Zone: ₹230–₹250 (below DMA 200).

🏭 Business Model & Competitive Advantage

• Core operations in sports and athleisure footwear manufacturing and retail.
• Strong brand recognition in affordable sports footwear segment with wide distribution network.
• Competitive advantage lies in brand positioning, scale, and growing demand for athleisure in India.

📈 Entry Zone & Long-Term Guidance

• Entry Zone: Attractive accumulation between ₹230–₹250.
• Long-Term Holding: Suitable for investors betting on consumer lifestyle growth, but valuation risks remain high.

✅ Positive

• Strong ROCE (20.1%) and ROE (17.2%).
• Moderate debt-to-equity ratio (0.48).
• Growing demand for athleisure and sports footwear in India.
• Increase in DII holdings (+0.03%).

⚠️ Limitation

• High P/E ratio (65.1) compared to industry average.
• P/B ratio of 10.1 suggests expensive valuation relative to assets.
• PEG ratio of 18.2 indicates poor growth outlook relative to valuation.
• Dividend yield at 0.39% is negligible.

📉 Company Negative News

• Decline in quarterly PAT (20.1 Cr. vs 22.2 Cr.).
• Reduction in FII holdings (-0.68%).

📈 Company Positive News

• EPS at ₹4.05 shows stable earnings base.
• Increase in domestic institutional investor confidence (+0.03%).
• Strong brand presence in sports footwear market.

🌐 Industry

• Footwear and athleisure sector driven by rising consumer demand and lifestyle changes.
• Industry PE at 37.6 indicates moderate valuation compared to Campus’s premium.
• Sector outlook supported by urbanization, fitness trends, and growing middle-class consumption.

🔎 Conclusion

• Campus is financially stable with decent efficiency metrics but currently trades at a premium valuation.
• Best suited for long-term investors betting on lifestyle and athleisure growth.
• Accumulation recommended near ₹230–₹250 for favorable risk-reward balance.