Campus Activewear
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Campus Activewear's management has articulated a clear strategy focused on premiumization and network expansion, which is expected to drive mid-teen revenue growth despite recent margin pressures. The company's shift towards higher-margin categories, such as sneakers, and the implementation of an SoR model for franchise stores are pivotal in enhancing inventory control and pricing strategies. Vista's financial outlook reflects a cautious yet optimistic view, projecting moderate revenue growth and a target EBITDA margin of 17% to 19%. The anticipated expansion of production capacity and the launch of new SKUs are expected to bolster market share, particularly in the women's and children's segments. However, the competitive landscape and potential supply chain disruptions remain significant watchpoints. Overall, while the macroeconomic environment in India is supportive, inflationary pressures and geopolitical uncertainties could pose challenges. Over the next 12-24 months, Campus Activewear is well-positioned to leverage its strategic initiatives, although it must navigate the complexities of a dynamic market environment
Why We Like This Stock
- Management's focus on premiumization and product diversification is expected to drive mid-teen revenue growth
- Expansion of production capacity and the launch of new SKUs will enhance market positioning and support profitability
- The transition to an SoR model for franchise stores will improve inventory control and pricing strategies
Things To Watch Out For
- Margin pressures from raw material costs and wage inflation could impact profitability in the near term
- The competitive landscape in the Indian footwear market poses risks to market share and pricing power
- Potential supply chain disruptions due to reliance on domestic raw materials may affect operational efficiency
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,448 | 1,593 | 1,774 | 1,756 | 1,921 |
| Profit Before Tax (Cr.) | 120 | 164 | 202 | 205 | 224 |
| PBT Margin | 8.3% | 10.3% | 1138.7% | 11.7% | 11.7% |
| Net Profit (Cr.) | 82 | 118 | 150 | 152 | 166 |
| Earnings Per Share | 2.7 | 3.8 | 4.9 | 5.0 | 5.4 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Elara Capital | ▲ Buy | 355 | 26-May-2026 |
| Kotak Securities | ▲ Buy | 310 | 26-May-2026 |
| Motilal Oswal | ▲ Buy | 310 | 07-Aug-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 casual foowear, sandals, and slippers 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.