CAMPUS - Investment Analysis

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

📊 Investment Rating: 3.9

Campus Activewear Ltd. shows strong fundamentals and growth potential in the athleisure footwear segment, but its current valuation and technical indicators suggest a cautious approach for long-term investors. Here's a full breakdown

✅ Strengths for Long-Term Investment

High Profitability

ROCE: 31.8% — excellent capital efficiency

ROE: 29.3% — strong shareholder returns

Growth Momentum

EPS: ₹3.57 — improving earnings base

Qtr Profit Var: 1,347% — sharp rebound, though needs consistency

Reasonable PEG Ratio: 1.86 — suggests growth is somewhat aligned with valuation

Institutional Interest

DII and FII holdings increased — positive sentiment

Sector Leadership

Campus holds ~17% market share in India’s scaled sports & athleisure footwear market

1

⚠️ Risks & Valuation Concerns

High Valuation

P/E: 77.1 vs Industry PE of 42.9 — trading at a premium

Dividend Yield: 0.26% — not attractive for income investors

Debt Load

Debt-to-equity: 0.68 — moderate, but worth monitoring

Weak Technicals

RSI: 41.2 — nearing oversold territory

MACD: 0.35 — weak bullish signal

Price below 50 DMA and near 200 DMA — trend reversal possible

📈 Ideal Entry Price Zone

To reduce valuation risk, consider accumulating in the ₹250–₹265 range

This zone is near recent support levels and offers better margin of safety

RSI and MACD suggest weakness — wait for stabilization or reversal signals

🧭 Exit Strategy / Holding Period

If you're already holding the stock

Holding Period: 3–5 years to benefit from brand expansion and margin improvement

Exit Strategy

Partial Exit near ₹360–₹370 (52-week high) if valuation remains stretched

Hold if ROE stays above 25% and PEG drops below 1.5

Monitor quarterly PAT and EPS — any stagnation may warrant trimming

Would you like a peer comparison with other footwear or consumer discretionary stocks to benchmark Campus Activewear’s potential?

1

www.screener.in

Edit in a page