Campus Activewear Reports Strong Profit Growth Amid Mixed Long-Term Outlook and Investor Caution

Campus Activewear has recently undergone an adjustment in evaluation, reflecting a nuanced view of its financial standing within the consumer durables sector. The company reported very positive financial performance for the quarter ending Q3 FY24-25, showcasing a significant growth in net profit of 224.97%. This achievement is underscored by a robust operating profit to interest ratio, which stands at 19.11 times, and net sales reaching Rs 514.80 crore.
Despite these positive indicators, the long-term growth trajectory appears less favorable, with net sales and operating profit growing at annual rates of 9.81% and 4.02%, respectively, over the past five years. Additionally, the stock is currently positioned within a bearish technical range, having generated negative returns since late February 2025.

Institutional investor participation has also seen a slight decline, with a 0.72% reduction in stakes over the previous quarter, indicating a cautious sentiment among larger investors. However, the company maintains high management efficiency, evidenced by a return on capital employed (ROCE) of 19.92% and a low debt to EBITDA ratio of 1.21 times, suggesting a strong capacity to manage its financial obligations.

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