Campus Activewear Reports Flat Q2 FY24 Performance Amid Market Challenges

Campus Activewear, a midcap player in the consumer durables sector, has recently undergone an adjustment in its evaluation. This revision reflects a complex interplay of financial metrics and market dynamics. The company has reported flat financial performance for the second quarter of FY24, with net sales and profit after tax showing declines compared to the previous year. Specifically, net sales reached Rs 333.29 crore, down by 7.0%, while profit after tax fell to Rs 14.30 crore, a decrease of 31.4%.
Despite these challenges, Campus Activewear maintains a strong management efficiency, evidenced by a return on capital employed (ROCE) of 19.92%. The company also demonstrates a solid ability to service its debt, with a low debt-to-EBITDA ratio of 1.21 times. Additionally, the stock is currently positioned in a mildly bullish technical range, with indicators such as the Bollinger Band reflecting positive trends since early February 2025.

However, the company faces headwinds, including a decline in institutional investor participation, which has seen a reduction in their stake by 0.72% over the last quarter. This shift may indicate a cautious outlook among larger investors regarding the company's long-term growth prospects.

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