Campus Activewear
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Campus Activewear is strategically transitioning towards a premium-focused, direct-to-consumer model, which is expected to drive mid-teen revenue growth and enhance margins over the next few years. Management's emphasis on 'sneakerisation' and 'casualisation' of its product portfolio, alongside a robust pipeline of over 250 new SKUs annually, positions the company to capture the growing mid-premium footwear segment. Despite facing competitive pressures and macroeconomic challenges, including inflationary impacts on margins, the company's focus on operational efficiency and premium product tiers is likely to support its financial outlook. Vista's forecast anticipates a gradual recovery in margins, with expectations of reaching 18% by FY28, aligning with the company's strategic initiatives. The current valuation reflects fair alignment with intrinsic value, with an expected upside of approximately 10.6%. Over the next 12-24 months, key opportunities include expanding into the Southern Indian market and scaling the athleisure line, while watchpoints include competitive intensity and commodity price fluctuations that could impact profitability
Why We Like This Stock
- Management's focus on premiumization and a strong product innovation pipeline supports mid-teen revenue growth
- The transition to a D2C model and increased in-house manufacturing are expected to enhance operational efficiency and margins
- Expansion into new markets and product categories positions the company for long-term growth
Things To Watch Out For
- Competitive pressures from global incumbents may challenge market share and pricing power
- Inflationary pressures on raw materials and wages could impact margins in the near term
- Geopolitical uncertainties and macroeconomic volatility pose risks to operational stability
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,448 | 1,593 | 1,774 | 1,751 | 1,852 |
| Profit Before Tax (Cr.) | 120 | 164 | 202 | 192 | 208 |
| PBT Margin | 8.3% | 10.3% | 11.4% | 11.0% | 11.2% |
| Net Profit (Cr.) | 82 | 118 | 150 | 142 | 154 |
| Earnings Per Share | 2.7 | 3.8 | 4.9 | 4.7 | 5.0 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| ICICI Securities | ▲ Buy | 277 | 21-Aug-2026 |
| Motilal Oswal | ▲ Buy | 310 | 07-Aug-2026 |
| Elara Capital | ▲ Buy | 355 | 26-May-2026 |
| Kotak Securities | ▲ Buy | 310 | 26-May-2026 |
Company Overview
Show Company Profile
Campus Activewear Limited engages in the design, manufacture, marketing, and distribution of sports and athleisure footwear, apparels, and backpacks for men, women, and children in India and internationally. It offers general-purpose sports shoes for fitness, exercising, walking, and light sports activities; and sneakers, sandals, slippers and open footwear across men's, women's and kids under the CAMPUS brand name. The company distributes its products through e-commerce platforms, distributors, and retail networks, comprising exclusive brand outlets and multi-brand outlets, as well as wholesale nework. Campus Activewear Limited was founded in 2005 and is based in Gurugram, India.