Motilal Oswal's research report on Campus Activewear
Campus Activewear (Campus) delivered 29% YoY revenue growth (8% beat) on a lower base, driven by 36% YoY volume growth. However, EBITDA (13% miss) and PAT (23% miss) were weaker as margin was impacted by higher discounts in retail meet/online channel, non-BIS inventory liquidation, and higher advertisement spends ahead of festive sales. Despite weaker margins in 1HFY25 (~13.4%), management expects FY25 margins to be higher than FY24 levels (14.6%), fueled by operating leverage benefits with strong sales momentum in 2H.
Outlook
We cut our FY25-26 revenue estimates by 2-3% and PAT estimates by 6-8%. We build in a CAGR of 13%/21/34% in revenue/EBITDA/PAT over FY24-27. We reiterate our BUY rating with a TP of INR360 based on 55x Dec’26 P/E.
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.
