Campus Activewear Q4 Results Review - Trade Distribution Channel Supports Growth: Motilal Oswal

Motilal Oswal Report

Campus Activewear Ltd. posted a 5% YoY revenue growth (in line) in Q4 FY24. The decline in O2O/B2B channels was offset by growth in trade distribution channel and marketplace model.

Reductions in factory overhead and lower ad spending resulted in 13%/43% YoY growth in Ebitda/profit after tax (15%/ 27% beat) during the quarter.

We broadly maintain our estimates, factoring in 14%/35% revenue/profit after tax compound annual growth rate over FY24-26. The stock has corrected sharply; however, Campus’s strong market position and a long runway for growth should result in market recovery in H2 FY25E. Reiterate Buy with a target price of Rs 295.

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