Motilal Oswal issued a buy rating on Campus Activewear with a target price of Rs 290. The firm said it remains constructive on the company’s growth ambition, driven by volume and premiumization. Analysts expect strong revenue gains through FY29, noting that the current risk-reward for investors appears quite compelling today.
Motilal Oswal's research report on Campus Activewear We attended Campus Activewear (Campus) analyst meet and came away constructive on management's mid-teens organic growth ambition, underpinned by volume, premiumization, and expansion into newer categories such as performance footwear. Notably, management indicated its openness to inorganic opportunities (brand licensing/M&A) to strengthen its premium portfolio, marking an additional growth lever, although any such transaction would need to be ASP and margin accretive. Further, Campus remains confident of sustaining its YoY margin expansion, aided by an improving product mix and calibrated price hikes. which it does not intend to roll back even if RM prices moderate. We expect ~15%/18%/23% revenue/ EBITDA/PAT CAGR over FY26-29E, driven by equal contributions from volume and ASP growth. Outlook Our estimates do not factor in any inorganic expansion. After the recent sharp correction, the risk-reward appears compelling. We reiterate our BUY rating on Campus with a TP of INR290, premised on 35x Sep'28 EPS. For all recommendations report, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. Campus Activewear - 1210026 - moti