Campus Activewear Q2 Review: Motilal Oswal Trims EPS Estimate For FY27-28 By ~6%, But Maintains 'Buy'

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Motilal Oswal Report

Campus Activewear Ltd.’s innovative designs, color combinations, and attractive price points make it a market leader in the fast-growing Sports and Athleisure (S&A) category.

The GST rate cut acts as a structural demand catalyst, improving affordability and fueling growth. Alongside expanding distribution and new sneaker-focused capacity, Campus is well poised to sustain double-digit revenue growth.

We trim our Ebitda estimates for FY27/28E by 1-2%, but higher leasehold expenses related to the new Pantnagar facility lead to ~6% cut in our EPS. 

We model an 11%/19%/23% CAGR in revenue/Ebitda/PAT over FY25-28E, with Ebitda margin improving to ~19% by FY28.

Our EPS cut was offset by the roll-forward of our estimates to Dec’27, leading to an unchanged target price of Rs 315.

Our target price is based on 45 times Dec’27E P/E; reiterate Buy.

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