Campus Activewear Limited (CAMPUS.NS) Bundle
Dive into Campus Activewear's fiscal story where topline momentum-revenue up to ₹1,593.0 crore in FY25 (+10% YoY) on 24.9 million pairs sold (volume +12.3% YoY) meets improving unit economics as ASPs hover around ₹639 per pair (FY25) while Q1 FY26 shows an ASP uptick to ₹671; profitability strengthened with EBITDA at ₹258.2 crore (FY25, margin 16.1%) and PAT at ₹121.2 crore (margin 7.5%), supported by a net-debt-free balance sheet after repaying ₹156 crore and lower finance costs (₹18.79 crore in FY25), even as valuation multiples remain rich-P/E at 68.0x, P/BV 10.7x and market cap at ₹84.3 billion-while operational cash flows (CFO ~₹2,000 million), tighter working capital (DSO 36 days, DIO 89 days) and a ROCE of 21.98% underpin expansion plans (296 EBOs today with a 3‑year target of 500 stores and land acquisition plans of ₹74.75 crore), set against risks including interest expense variability, raw material swings and competitive pressure; read on for the detailed breakdown of metrics, liquidity, valuation and the growth levers that investors must weigh.
Campus Activewear Limited (CAMPUS.NS) - Revenue Analysis
Campus Activewear delivered notable top-line momentum in FY25 and early FY26, driven by expanded distribution, higher volumes and a shifting product mix that lifted margins despite a marginal dip in full-year ASP.- FY25 revenue from operations: ₹1,593.0 crore - up 10.0% year-on-year, led by a stronger distribution push.
- Sales volume (FY25): 24.9 million pairs - up 12.3% year-on-year.
- Average Selling Price (ASP): ₹639 per pair in FY25, down from ₹652 in FY24 (slight ASP compression).
- Q1 FY26 revenue: ₹343.3 crore - up 1.2% year-on-year; Q1 FY26 ASP: ₹671 per pair (reflecting a richer mix in the quarter).
- Net-debt-free status achieved in FY24 after repaying borrowings of ₹156 crore.
- Gross margin (Q1 FY26): 55.4%, improved by 210 basis points year-on-year due to richer product mix and operational efficiencies.
| Metric | FY24 | FY25 | Q1 FY26 |
|---|---|---|---|
| Revenue (₹ crore) | 1,448.2 (implied) | 1,593.0 | 343.3 |
| Revenue YoY Growth | - | +10.0% | +1.2% (Q1 YoY) |
| Sales Volume (million pairs) | 22.2 (implied) | 24.9 | - |
| Volume Growth YoY | - | +12.3% | - |
| ASP (₹/pair) | 652 | 639 | 671 |
| Gross Margin | - | - | 55.4% |
| Gross Margin change (YoY) | - | - | +210 bps |
| Net Debt Status | Net-debt-free (FY24) | Net-debt-free | Net-debt-free |
- Volume-led growth (+12.3% in FY25) was the primary driver of revenue expansion, offsetting a modest full-year ASP decline (from ₹652 to ₹639).
- Quarterly ASP of ₹671 in Q1 FY26 suggests successful up-selling/richer mix on a quarterly basis, supporting higher gross margins (55.4% in Q1 FY26).
- Achieving net-debt-free status (repayment of ₹156 crore) improves financial flexibility for distribution expansion and working-capital support.
Campus Activewear Limited (CAMPUS.NS) - Profitability Metrics
Campus Activewear's recent financials show expanding operating profitability alongside mid-single-digit net margins. Key reported figures reveal robust EBITDA growth in FY25 and improving EPS on a trailing twelve‑month basis.
- FY25 EBITDA: ₹258.2 crore (YoY growth 19.9%); EBITDA margin 16.1%.
- FY25 PAT: ₹121.2 crore (YoY growth 35.5%); PAT margin 7.5%.
- Q1 FY26 EBITDA: ₹55.4 crore; EBITDA margin 15.9%.
- Q1 FY26 PAT: ₹22.2 crore; PAT margin 6.4%.
- Reported net profit behavior: net profit margin fluctuates around mid-single digits with a reported PAT of ₹35.03 crore in a referenced period and an EBIT margin of ~13.13%.
- Trailing twelve‑month (TTM) EPS: ₹4.0 vs prior-year EPS ₹2.9.
| Metric | FY25 | Q1 FY26 | TTM / Other |
|---|---|---|---|
| EBITDA (₹ crore) | 258.2 | 55.4 | - |
| EBITDA Margin | 16.1% | 15.9% | ~13.13% (reported EBIT margin) |
| PAT (₹ crore) | 121.2 | 22.2 | 35.03 (referenced period) |
| PAT Margin | 7.5% | 6.4% | Mid-single digits (fluctuating) |
| EPS (₹) | - | - | TTM: 4.0 (prior year: 2.9) |
| YoY EBITDA Growth | 19.9% | - | - |
| YoY PAT Growth | 35.5% | - | - |
For additional context on ownership and investor activity that can affect valuation and forward profitability expectations, see: Exploring Campus Activewear Limited Investor Profile: Who's Buying and Why?
Campus Activewear Limited (CAMPUS.NS) - Debt vs. Equity Structure
- Net-debt-free status achieved in FY24 after repaying ₹156 crore in borrowings.
- Finance costs reduced to ₹18.79 crore in FY25 from ₹23.20 crore in FY24, reflecting lower interest burden.
- Market capitalization: ₹84.3 billion.
| Metric | Value |
|---|---|
| Share price (current) | ₹262.60 |
| P/E (TTM) | 68.0x |
| Implied TTM EPS (₹) | ₹3.86 (≈ 262.6 / 68.0) |
| P/BV | 10.7x |
| Implied Book Value per Share (₹) | ₹24.53 (≈ 262.6 / 10.7) |
| P/CF (end-of-year operating CF) | 45.6x |
| Implied Operating Cash Flow per Share (₹) | ₹5.76 (≈ 262.6 / 45.6) |
| Net debt | Net-debt-free (FY24) |
| Borrowings repaid (FY24) | ₹156 crore |
| Finance costs | ₹23.20 crore (FY24) → ₹18.79 crore (FY25) |
| Market capitalization | ₹84.3 billion |
- Implication for capital structure: equity-heavy financing reflected in high P/BV (10.7x) and elevated market capitalization relative to book equity, consistent with net-debt-free balance sheet.
- Valuation signals: steep P/E (68.0x) and P/CF (45.6x) indicate market pricing based on growth expectations rather than current earnings/cash generation.
- Interest burden trend: lower finance costs in FY25 reduce fixed-charge pressure and improve margin flexibility.
Campus Activewear Limited (CAMPUS.NS) - Liquidity and Solvency
Campus Activewear's liquidity and solvency profile in FY25 shows operational cash generation alongside continued investment and deleveraging efforts. Key cash flow and working capital metrics indicate improving collections and inventory turnover, while net cash remains marginally negative.- Cash Flow from Operating Activities (CFO) - FY25: ₹2,000 million (YoY: positive; reported as year-on-year basis)
- Cash Flow from Investing Activities (CFI) - FY25: ₹-2,000 million (improvement of 107.5% YoY)
- Cash Flow from Financing Activities (CFF) - FY25: ₹-847 million (improvement of 56% YoY)
- Net Cash Flow - FY25: ₹-41 million (vs ₹-25 million in FY24)
- Days Sales Outstanding (DSO) - FY25: 36 days (improved from 44 days in FY24)
- Days Inventory Outstanding (DIO) - FY25: 89 days (improved from 107 days in FY24)
| Metric | FY25 | FY24 | YoY Change |
|---|---|---|---|
| Cash Flow from Operations (CFO) | ₹2,000 million | - | Reported YoY improvement |
| Cash Flow from Investing (CFI) | ₹-2,000 million | - | +107.5% |
| Cash Flow from Financing (CFF) | ₹-847 million | - | +56% |
| Net Cash Flow | ₹-41 million | ₹-25 million | Worsened by ₹-16 million |
| Days Sales Outstanding (DSO) | 36 days | 44 days | Improved by 8 days |
| Days Inventory Outstanding (DIO) | 89 days | 107 days | Improved by 18 days |
- Liquidity interpretation: Positive CFO of ₹2,000 million supports near-term operations and working capital needs despite a slight negative net cash position (₹-41 million).
- Working capital dynamics: DSO down to 36 days and DIO down to 89 days reflect faster collections and improved inventory management, which reduce cash conversion cycle pressure.
- Investment and financing: CFI at ₹-2,000 million (large but improved) suggests continued capex or strategic investments, while CFF at ₹-847 million (improved) indicates reduced external financing or deleveraging actions.
Campus Activewear Limited (CAMPUS.NS) - Valuation Analysis
Campus Activewear's recent operating and profitability metrics show improving earnings and capital efficiency alongside rich market multiples, suggesting investor expectations for sustained growth.- Trailing twelve-month EPS: ₹4.0 (up from ₹2.9 a year ago)
- Current market price: ₹262.6
- Market capitalization: ₹84.3 billion
| Metric | Value | Comment |
|---|---|---|
| EPS (TTM) | ₹4.0 | Improved from ₹2.9 last year |
| P/E (price / earnings) | 68.0x | Based on current price ₹262.6 and TTM EPS |
| P/BV (price / book value) | 10.7x | Reflects high valuation vs. book equity |
| P/CF (price / operating cash flow) | 45.6x | Based on end-of-year operating cash flow |
| Market Capitalization | ₹84.3 billion | Equity market value |
| ROCE (FY25) | 21.98% | Improved from 19.20% in FY24 |
- High P/E (68x) signals growth expectations; relative to EPS improvement (₹4.0) suggests investors are pricing future expansion rather than current earnings alone.
- P/BV of 10.7x indicates the stock trades well above its book equity-premium likely driven by brand, distribution reach and margin profile.
- P/CF at 45.6x shows market assigns a steep multiple to cash generation; requires scrutiny of sustainability of operating cash flows and capex needs.
- ROCE rising to 21.98% in FY25 (from 19.20% FY24) supports operational quality and efficient capital use, partially justifying premium multiples.
Campus Activewear Limited (CAMPUS.NS) Risk Factors
Campus Activewear's financial profile shows strengths in brand positioning and distribution, but several tangible risks require close monitoring by investors. Below are the key areas of concern, supported by quantifiable indicators and their likely investor impact.- Rising interest expenses: The latest quarterly disclosures indicate a material increase in finance costs versus prior periods, which compresses net margins and reduces free cash flow available for growth or dividends.
- Sustainability of non-operating income: The company's earnings mix has recently included meaningful non-operating gains (e.g., one-off investment income/other income). Reliance on these items to meet earnings expectations can lead to volatility when they are not repeated.
- Competitive footwear market: Campus operates in a crowded domestic and international market with established incumbents and fast-moving new entrants, placing pressure on pricing, marketing spend, and share gains.
- Raw material price volatility: Inputs such as rubber, EVA, synthetic textiles, and freight can swing costs; adverse movements directly erode gross margins unless offset by pricing or productivity.
- Shifts in consumer preferences: Changes toward athleisure trends, premiumization or brand switching can affect volumes and average selling price (ASP).
- Macroeconomic downturns: Reduced consumer discretionary spending during slowdowns can materially depress sales and inventory turnover.
| Risk | Recent Indicator | Quantitative Impact |
|---|---|---|
| Interest expense spike | Quarterly finance costs increased notably vs. prior year | Higher interest reduces PAT margin by several percentage points; interest cover ratio declines, raising refinancing risk |
| Non-operating income dependence | Significant share of last reported quarterly profits from other income | Core operating EBITDA growth needed to sustain EPS once non-op items normalize |
| Competitive pressures | Multiple domestic & international players expanding price/promotional activity | Requires higher marketing/S&M spend; margin dilution risk 100-300 bps depending on response |
| Raw material volatility | Input cost swings (rubber, polymers, logistics) | Gross margin swings of 1-4 percentage points observed historically in footwear peers |
| Consumer preference shifts | Trend-driven demand for new styles/technologies | Inventory obsolescence risk; markdowns can compress GM and elevate working capital |
| Economic slowdown | Lower discretionary spend periods in India/global markets | Revenue declines and slower inventory turns; stress on cash flow and leverage metrics |
- Key ratios to watch: interest coverage (EBIT/finance costs), operating EBITDA margin, gross margin trend, inventory days, and cash conversion cycle-deterioration in these metrics signals elevated risk.
- Scenario sensitivity: A sustained 2-3 percentage-point drop in gross margin combined with a doubling of finance costs could reduce free cash flow materially and lead to upward pressure on leverage ratios.
Campus Activewear Limited (CAMPUS.NS) Growth Opportunities
Campus Activewear is pursuing an aggressive expansion and product-play strategy focused on scaling retail footprint, upgrading manufacturing capacity and accelerating omni-channel penetration.- Retail expansion: total Exclusive Brand Outlets (EBOs) now 296 following the launch of 30 new stores pan‑India; plan to resume EBO expansion next year targeting 70-75 new stores annually with an ambition to reach ~500 stores in three years.
- Manufacturing scale-up: proposed acquisition of land & building in Uttarakhand for ₹74.75 crore to increase fabricating/assembly capacity and shorten lead times.
- Product and portfolio: launched 50+ new value‑for‑money styles across men's, women's and children's categories to deepen range and drive premiumization in select segments.
- Geographic and channel focus: priority on Western and Southern India, coupled with omni‑channel growth (EBOs + digital marketplace + wholesale) to improve penetration and customer lifetime value.
| Metric | Current | Near‑term Target (Next 12-18 months) | 3‑Year Target |
|---|---|---|---|
| Total EBOs | 296 | 366-371 (add 70-75 stores) | 500 |
| Recent store launches | 30 new stores (latest tranche) | 70-75 stores planned annually | - |
| New product styles | 50+ value‑for‑money styles launched | Incremental seasonal drops across categories | Broader premium & diversified SKUs |
| Manufacturing investment | Planned land & building acquisition | ₹74.75 crore (Uttarakhand) | Capacity sufficient to support 500 stores |
- Omni‑channel leverage: accelerating e‑commerce integration with retail and wholesale to lift ASPs and margin profile.
- Premiumization: targeted upgrade of product mix to shift sales toward higher‑margin items without losing value segment share.
- Regional deepening: store density strategy in Western & Southern India to capture higher urban wallet and seasonal demand.
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