Campus Activewear Zooms 7% After Robust Performance in Q4FY24

Campus Activewear (CAL), India’s largest omnichannel sports and athleisure footwear brand is buzzing on the bourses amid a sell-off in the market. CAL is amongst a few established national brands enjoying a 17% market share in the Indian branded sports and athleisure footwear industry which is predominated by international brands.

The share price of Campus Activewear climbed over 7% on Wednesday marking its highest single-day gain in the last 12 months and with this, the stock has marked a fresh 3-month high. The total traded volume on NSE was more than 28 lakh shares which is the highest since May 09.

So, what is the reason the stock is buzzing?

The main reason for the buzz in the stock is its financial performance as it made a strong comeback in H2FY24 with a vigoured focus on trade distribution and new launches. The company was successful in grabbing customers’ minds and wallet shares from its prudent investment in the brand for its R&D-enabled products.

Campus Active Financial Performance Q4FY24 vs Q4FY23

Profit after tax registered a growth of 42.6% YoY to Rs 32.7 crore, revenue also improved to Rs 363.9 crore and EBITDA margin improved to 18.30%.

Furthermore, the company repaid its borrowing of Rs 156 crore in FY24, thereby achieving net-debt-free status during FY24. Additionally, the company has made significant improvement in their working capital days from 108 days in FY23 to 79 days in FY24 led by lower inventory and conscious trimming of receivable days.

Key achievements by the company in FY24

• 22.2 mn pairs sold in FY24
• 44% revenue contribution from Direct-to-Consumer channels during FY24
• 300+ designs launched during FY24
• Average Selling Price (ASP) Rs 652 vs Rs 631 per pair up by 3.4% YoY

Stock’s Performance

The stock has turned positive on a YTD basis after Wednesday’s move, in May the stock delivered a double-digit gain.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.