Campus Activewear Limited

Consumer Cyclical — Footwear & Accessories · NSE

₹201.10+₹4.09 (+2.08%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

The 60-second version of Campus Activewear Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

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.

IndustryFootwear & Accessories

SectorConsumer Cyclical

Employees980

Annual revenue₹1,774 Cr

How does it make money?

Turns over ₹1,774 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation. Each of its 980 employees supports ₹1.81 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.81 Cr

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 20.7%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 16.6% against a peer median of 25.9% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE25.9%

What is the outlook?

7 analysts covering the stock expect revenue to grow about 12.8% and earnings to grow about 21.5% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+12.8%

Est. earnings growth+21.5%

Analysts7

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +20% while net margin moved +7% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+20%

Margin effect+7%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 41.0x is demanding — it needs sustained high growth to justify
✓ P/E is 43% below its own historical median of 71.7x — cheap by its own standards
✗ P/B of 6.78x is a steep premium to book

Quality vs. Valuation

Company Quality

65/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

56/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

41.0x

3Y Median

71.7x

40 monthly readings · mean 73.5x · range 41.0x–116.0x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 43% below its 3y median of 71.7x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 41% below the peer median of 69.2x.

vs. its own history

Cheap

71.7x median over 40 months · -43%

vs. sector peers

Cheap

69.2x median of 4 peers · -41%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

20.3x

PEG

4.76

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 30% over 3 years.
High return on capital employed
ROCE of 20.7% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.26x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 21.2% to 16.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 25.7% to 20.7% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 high

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.7% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Deleveraging frees up earnings
Debt is down 30% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 43% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 41% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹45 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Growth barely outpaces inflation
Revenue compounding at 6.1% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 21.2% to 16.6%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 16%✓ 17.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 5% a year✓ 6.1% CAGR
Latest reported year was 12.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹45 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 18%✓ 20.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 2 neutral · 2 weak

Market Cap

₹6,147 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

41.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

6.78x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹4.9

Profitable

Profitable on a per-share basis

ROE

16.6%

Strong

Strong capital efficiency

ROCE

20.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.26x

Low

Conservative leverage

Revenue Growth (YoY)

12.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

19.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.75%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹45 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

29.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

8.3%

Average

Average margins

Net Margin

8.5%

Average

Average bottom-line conversion

Current Ratio

2.37

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.13

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

205.4 / 214.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

38.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,484 Cr	₹1,448 Cr	₹1,593 Cr	₹1,774 Cr	+6.1%
EBITDA	₹255 Cr	₹216 Cr	₹259 Cr	₹315 Cr	+7.2%
EBITDA Margin	17.2%	14.9%	16.3%	17.7%	—
PAT (Net Profit)	₹117 Cr	₹89 Cr	₹121 Cr	₹150 Cr	+8.6%
EPS	₹3.84	₹2.93	₹3.97	₹4.91	+8.5%
ROE	21.2%	13.7%	16.0%	16.6%	—
ROCE	25.7%	17.5%	18.7%	20.7%	—
Total Debt	₹335 Cr	₹178 Cr	₹232 Cr	₹236 Cr	-11.0%
Free Cash Flow	₹58 Cr	₹219 Cr	₹176 Cr	₹45 Cr	-8.3%

🟢 Revenue has grown at 6.1% a year over 3 years.

🟢 EBITDA has grown at 7.2% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 17.7% over 3 years.

🟢 PAT (Net Profit) has grown at 8.6% a year over 3 years.

🟢 EPS has grown at 8.5% a year over 3 years.

🔴 ROE has fallen from 21.2% to 16.6% over 3 years (-4.7 pts).

🔴 ROCE has fallen from 25.7% to 20.7% over 3 years (-5.0 pts).

🟢 Total Debt has shrunk at 11.0% a year over 3 years.

🔴 Free Cash Flow has shrunk at 8.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,467 Cr

Total Liabilities

₹561 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹135 Cr

Capex

-₹90 Cr

Shareholding (proxy)

Institutional Holding

17.7%

Insider Holding

72.1%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

31 Jul 2026

Analyst Consensus

Recommendations

6 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹287.57

+43.0% vs CMP

Target Range

₹237 – ₹321

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

5 mixed1 general

Campus Activewear (NSEI:CAMPUS) Stock Forecast & Analyst Predictions

Simply Wall Street, 14 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

CAMPUS Share Price hits fresh 52-week low on price action

Univest, 25 Sept

Campus Activewear jumps 10% on strong Q4; brokerages eye up to 50% upside

Business Standard, 26 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Campus Activewear: Rs 588 crore quarter, strong margins — Is the opportunity still open?

The Indian Express, 23 AprResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Retail stocks to buy before Q2 results: Metro Brands, Campus Activewear, Vishal Mega Mart shares — Elara recommends

Livemint, 12 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Campus Activewear Reports 11.7% Q1 Volume Growth; Projects 17%-19% FY27 EBITDA Margins

Sahi, 07 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Growth · Profitability · Risk

WeakValuation

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑