CAMPUS - Investment Analysis: Buy Signal or Bull Trap?

Last Updated Time : 20 Dec 25, 07:05 am

Investment Rating: 2.9

📊 Campus Activewear shows moderate fundamentals with decent ROE (17.2%) and ROCE (20.1%), but valuations are stretched with a high P/E (65.1 vs industry 37.6) and an extremely high PEG ratio (18.2), indicating overvaluation relative to growth. The ideal entry price zone would be between ₹240 – ₹260, closer to its recent low and below DMA levels, offering margin of safety. If already holding, investors should adopt a cautious medium-term horizon (2–3 years), with partial profit booking near ₹310–₹320 and re-entry closer to support zones.

✅ Positive

• 📈 ROCE (20.1%) and ROE (17.2%) reflect moderate capital efficiency
• 💰 Dividend yield of 0.39% provides some income support
• 📊 Quarterly PAT growth of 40.4% shows operational improvement
• 📉 RSI at 33.4 indicates oversold zone, potential accumulation opportunity

⚠️ Limitation

• 📌 High P/E (65.1) compared to industry PE (37.6)
• 📌 PEG ratio of 18.2 signals severe overvaluation relative to growth
• 📌 Debt-to-equity ratio of 0.48 indicates moderate leverage
• 📌 Book value of ₹26 is far below current price, showing weak intrinsic support

📉 Company Negative News

• FII holding reduced by -0.68%, showing cautious foreign sentiment
• Quarterly PAT declined slightly from ₹22.2 Cr. to ₹20.1 Cr.

📈 Company Positive News

• DII holding increased slightly (+0.03%), reflecting domestic confidence
• Strong trading volumes above weekly average, showing investor interest
• Stock trading at 42.1% of 52-week range, offering accumulation potential

🏭 Industry

• Industry PE at 37.6, lower than Campus’s valuation
• Sportswear and footwear sector expected to benefit from rising consumer demand and lifestyle trends

🔎 Conclusion

Campus Activewear is a speculative candidate with moderate fundamentals but stretched valuations and weak intrinsic support. Ideal entry is closer to ₹240–₹260 for safety. Current holders should adopt a medium-term holding strategy, booking profits near ₹310–₹320, while avoiding aggressive long-term accumulation until ROE/ROCE improve and valuation multiples normalize.

Would you like me to extend this with a peer benchmarking overlay comparing Campus against Bata India, Relaxo Footwears, and Adidas India to highlight relative valuation, profitability, and growth strength?