Campus Activewear delivered a strong 16% revenue growth, driven by strong traction in the premium segment (sneaker sales up 2x YoY, ASAP up by Rs 50 or 8% YoY).
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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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