CAMPUS - Investment Analysis: Buy Signal or Bull Trap?
Back to ListInvestment Rating: 3.2
| Stock Code | CAMPUS | Market Cap | 8,297 Cr. | Current Price | 271 ₹ | High / Low | 304 ₹ |
| Stock P/E | 58.8 | Book Value | 26.0 ₹ | Dividend Yield | 0.37 % | ROCE | 20.1 % |
| ROE | 17.2 % | Face Value | 5.00 ₹ | DMA 50 | 261 ₹ | DMA 200 | 269 ₹ |
| Chg in FII Hold | 0.16 % | Chg in DII Hold | -0.11 % | PAT Qtr | 63.7 Cr. | PAT Prev Qtr | 20.1 Cr. |
| RSI | 63.2 | MACD | 1.34 | Volume | 4,26,420 | Avg Vol 1Wk | 11,06,759 |
| Low price | 210 ₹ | High price | 304 ₹ | PEG Ratio | 16.5 | Debt to equity | 0.48 |
| 52w Index | 65.0 % | Qtr Profit Var | 37.0 % | EPS | 4.62 ₹ | Industry PE | 38.7 |
🔍 Analysis: Campus Activewear shows moderate fundamentals. ROE at 17.2% and ROCE at 20.1% indicate decent efficiency, supported by EPS of 4.62 ₹. Debt-to-equity at 0.48 is manageable, but the stock trades at a high P/E of 58.8 compared to the industry average of 38.7, suggesting stretched valuations. Dividend yield is modest at 0.37%. PEG ratio of 16.5 signals significant overvaluation relative to growth. Quarterly PAT improved (63.7 Cr vs 20.1 Cr), showing operational recovery. Current price (271 ₹) is above DMA supports (50 DMA at 261 ₹, 200 DMA at 269 ₹), reflecting short-term strength but limited upside compared to its 52-week high (304 ₹). RSI at 63.2 indicates the stock is nearing overbought territory.
💡 Entry Zone: Ideal entry would be in the 240–260 ₹ range, aligning with DMA supports and offering margin of safety. Deeper accumulation possible near 210–220 ₹ (52-week low) for long-term investors.
📈 Exit / Holding Strategy: If already holding, maintain position for 1–2 years given moderate ROE/ROCE. Consider partial exit near 300–310 ₹ resistance if valuations stretch further without earnings growth. Long-term holding is not advisable unless PEG ratio improves and profitability strengthens.
🌟 Positive
- ROCE (20.1%) and ROE (17.2%) show decent efficiency
- Quarterly PAT improved significantly (63.7 Cr vs 20.1 Cr)
- EPS at 4.62 ₹ supports earnings visibility
- FII holdings increased (+0.16%)
⚠️ Limitation
- High P/E (58.8 vs industry 38.7)
- PEG ratio (16.5) signals overvaluation
- Dividend yield modest (0.37%)
- Stock nearing overbought zone (RSI 63.2)
- DII holdings reduced (-0.11%)
📉 Company Negative News
- Valuation stretched compared to industry peers
- Institutional domestic investors trimmed stake
📈 Company Positive News
- Strong quarterly profit recovery
- FII stake increased, showing foreign confidence
- Stock trading above DMA supports, reflecting near-term strength
🏭 Industry
- Industry PE at 38.7, lower than Campus’s valuation
- Sportswear and footwear sector benefits from rising consumer demand and lifestyle trends
✅ Conclusion
Campus Activewear is a moderate candidate for short-to-medium term investment. Efficiency metrics are decent, but high P/E and PEG ratio limit long-term attractiveness. Ideal entry is near 240–260 ₹ for margin of safety. Existing holders should maintain for 1–2 years, with partial exit near 300–310 ₹ resistance unless fundamentals improve significantly.