Campus Activewear Shares Drop Below IPO Price After Q2 Profit Falls 98%

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Campus Activewear sports shoes. (Source: Company website)

Shares of Campus Activewear Ltd. tumbled nearly 10% on Friday to it lowest level since listing after its second-quarter profit dropped, missing analysts' estimates.

The athleisure shoemaker's net profit fell 98% year-on-year to Rs 32 lakh in the September quarter, according to an exchange filing on Thursday. This compares to a Rs 26.4 crore consensus estimate of analysts tracked by Bloomberg.

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Campus Activewear Q2 FY24 Earnings Highlights (YoY)

  • Revenue down 22% at Rs 259 crore. (Bloomberg estimate: Rs 353.3 crore).

  • Ebitda down 43% at Rs 24.6 crore. (Bloomberg estimate: Rs 60.3 crore).

  • Margin at 9.5% vs 13.04% (Bloomberg estimate: 17.10%).

  • Profit down 98% to Rs 0.32 crore. (Bloomberg estimate: Rs 26.4 crore).

Campus Activewear's stock fell as much as 9.92% during the day to Rs 237.80 apiece, the lowest since its listing on May 9, 2022. It pared losses to trade 3.41% lower at Rs 255 apiece compared to a 0.2% decline in the benchmark NSE Nifty 50.

It has fallen 39.9% on a year-to-date basis. The total traded volume so far in the day stood at 20 times its 30-day average. The relative strength index was at 22.24.

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Five out of the seven analysts tracking Campus Activewear maintain a 'buy' rating on the stock, one recommends a 'hold' and another suggests a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 52%.

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