Campus Activewear Gains 8.34%: Four Key Factors Driving the Weekly Rally

2 February 2026: Intraday Surge Signals Renewed Momentum

Campus Activewear Ltd opened the week with a robust performance, surging 7.75% to close at ₹272.45 on 2 February 2026. The stock reached an intraday high of ₹267 earlier in the session, marking a 7.18% intraday gain. This rally was particularly notable as it occurred despite the Sensex declining 1.03% to 35,814.09 on the same day, highlighting the stock’s relative strength.

The price advance was supported by the stock trading above its 5-day, 20-day, and 50-day moving averages, signalling short- to medium-term technical strength. This marked the continuation of a three-day gain streak, with the stock appreciating 6.74% over that period. The strong intraday momentum suggested renewed investor interest and a potential shift in sentiment within the footwear sector.

3 February 2026: Quarterly Results Drive Positive Sentiment

On 3 February, Campus Activewear announced a strong quarterly turnaround for Q3 FY26, reporting record net sales of ₹588.61 crores and a PBDIT of ₹110.26 crores. The operating profit margin expanded to 18.73%, the highest on record for the company, reflecting improved operational efficiency and margin expansion amid competitive pressures.

Net profit after tax rose to ₹63.68 crores, with earnings per share reaching ₹2.08, marking the company’s best quarterly EPS to date. These results reversed a previously negative financial trend, with the company’s financial trend score improving from -16 to +12. However, challenges remained, including a decline in return on capital employed to 16.12% and a slower debtor turnover ratio of 9.92 times, indicating potential working capital pressures.

The stock responded positively, closing at ₹270.05, down slightly from the previous day’s close but still reflecting strong intraday volatility with a high of ₹281.05. This price action underscored the market’s recognition of the improved fundamentals despite some operational concerns.

3 February 2026: Mixed Technical Signals Amid Momentum Shift

Alongside the quarterly results, technical analysis on 3 February revealed a complex picture. The stock’s price momentum shifted from strongly bearish to mildly bearish, reflecting cautious optimism tempered by persistent downside risks. The Moving Average Convergence Divergence (MACD) indicator remained bearish on weekly and monthly timeframes, while the Relative Strength Index (RSI) showed neutral readings, indicating balanced momentum.

Bollinger Bands presented a divergence with bullish weekly signals but mildly bearish monthly indications, suggesting short-term strength but longer-term caution. Daily moving averages hovered near key levels, reinforcing a tentative stance. Additional indicators such as the Know Sure Thing (KST) oscillator and Dow Theory analysis showed conflicting signals, with some mildly bullish weekly signs offset by bearish monthly trends.

On-Balance Volume (OBV) readings were mildly bearish weekly and neutral monthly, indicating volume patterns did not strongly support a sustained rally. The stock’s Mojo Score improved to 48.0, upgrading the grade from Strong Sell to Sell, reflecting a modest improvement in fundamentals but advising continued caution.

4 and 5 February 2026: Price Consolidation and Minor Fluctuations

On 4 February, Campus Activewear’s stock price edged up 0.93% to ₹272.55, supported by low volume of 17,791 shares. The Sensex also rose modestly by 0.37%, closing at 36,890.21. The following day, 5 February, saw a slight decline of 1.08% to ₹269.60 on thin volume of 10,870 shares, while the Sensex fell 0.53% to 36,695.11. These movements reflected a period of consolidation following the earlier volatility and strong quarterly news.

6 February 2026: Week Closes on a Positive Note

Campus Activewear ended the week on a positive note, gaining 1.61% to close at ₹273.95 on 6 February 2026. The Sensex also rose marginally by 0.10% to 36,730.20. The stock’s weekly performance of +8.34% significantly outpaced the Sensex’s 1.51% gain, underscoring the stock’s relative strength amid a mixed market environment.

This closing price was near the week’s intraday high of ₹281.05 recorded earlier in the week, indicating sustained buying interest. Volume on the final trading day was moderate at 20,557 shares, suggesting steady participation as the stock consolidated its gains.

Key Takeaways

Positive Signals: Campus Activewear’s 8.34% weekly gain substantially outperformed the Sensex’s 1.51%, driven by record quarterly sales and margin expansion. The stock’s technical positioning above short- and medium-term moving averages and improved Mojo Score to 48.0 (Sell grade) indicate a tentative recovery phase. Operational improvements, including a PBDIT margin of 18.73%, highlight enhanced profitability and cost control.

Cautionary Notes: Despite the strong quarterly results, challenges remain in capital efficiency with ROCE declining to 16.12% and debtor turnover slowing to 9.92 times. Rising interest expenses to ₹7.30 crores may pressure net profits if not managed carefully. Mixed technical indicators, including bearish MACD and KST oscillators, suggest that momentum remains fragile and the stock could face resistance near ₹280-₹285 levels.

Market Context: The footwear sector’s competitive environment and fluctuating raw material costs continue to pose headwinds. Campus Activewear’s ability to sustain sales growth and improve working capital management will be critical to maintaining its recent positive momentum.

Conclusion

Campus Activewear Ltd’s week was marked by a strong price rally of 8.34%, supported by record quarterly financials and a shift in technical momentum. The stock’s outperformance relative to the Sensex and sector peers reflects renewed investor interest and operational improvements. However, persistent challenges in capital efficiency and mixed technical signals counsel caution. The coming weeks will be crucial in determining whether the stock can build on this momentum and overcome resistance levels to establish a sustained uptrend. Investors should monitor upcoming financial disclosures and price action closely to assess the durability of this recovery phase.

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