Motilal Oswal's research report on Campus Activewear
Campus Activewear (Campus) posted a revenue decline of 4% YoY (9% miss), due to weak performances of both the trade distribution channel (TD) and D2C online channel. Growth in open footwear was a silver lining in 1QFY25. Weak revenue led to 22%/19% YoY decline in EBITDA/PAT (21%/22% miss) for the quarter. We broadly maintain our estimates, factoring in 14%/38% revenue/PAT CAGR over FY24-26. The stock has corrected sharply; however, Campus’s strong market position, stabilization of D2C online/TD channels, and a long runway for growth should result in a market recovery in 2HFY25E. Reiterate BUY with a TP of INR335.
Outlook
We broadly retain our estimates, factoring in 14%/38% revenue/PAT CAGR over FY24-26. Reiterate BUY with a TP of INR335 (premised on 60x P/E on FY26E EPS).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
