Why is Campus Activewe. falling/rising?

Recent Price Movement and Market Comparison

Campus Activewear’s shares have been under pressure, declining by 3.13% over the past week while the Sensex gained 0.20% in the same period. The stock’s one-month return of -5.69% also lagged behind the benchmark’s modest decline of 0.46%. Year-to-date, the stock has suffered a steep fall of 19.47%, contrasting sharply with the Sensex’s robust 8.22% gain. Over the last year, Campus Activewear’s shares have dropped 11.64%, whereas the Sensex rose by 4.80%. This trend extends over the longer term, with the stock falling nearly 39% over three years while the Sensex surged by 37.86%. These figures highlight a persistent underperformance against the broader market.

Technical Indicators and Trading Activity

On 17-Dec, the stock underperformed its sector by 1.07%, continuing a two-day losing streak that has seen a cumulative decline of 1.2%. Campus Activewear is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a bearish technical outlook. Despite this, investor participation has increased, with delivery volumes on 16-Dec rising by 68.67% to 2.08 lakh shares compared to the five-day average. The stock remains sufficiently liquid, supporting trade sizes of approximately ₹0.16 crore based on recent average traded values.

Fundamental Strengths Amidst Weakness

Despite the share price decline, Campus Activewear exhibits certain positive fundamentals. The company boasts a high return on capital employed (ROCE) of 18.57%, indicating efficient management and effective utilisation of capital. Its debt servicing capability is strong, with a low Debt to EBITDA ratio of 1.27 times, suggesting manageable leverage. The valuation metrics also appear attractive, with an enterprise value to capital employed ratio of 7.1 and a ROCE of 14.5, positioning the stock at a discount relative to its peers’ historical averages. Furthermore, profits have increased by 27.2% over the past year, even as the stock’s price declined by 11.64%, resulting in a PEG ratio of 2.4. Institutional investors have shown growing confidence, increasing their stake by 0.71% in the previous quarter to hold 18.44% collectively, reflecting a belief in the company’s underlying fundamentals.

Challenges Weighing on the Stock

However, the company faces significant headwinds that have contributed to the stock’s downward trajectory. Long-term growth has been sluggish, with net sales expanding at an annual rate of just 2.60% and operating profit growing by a mere 2.04% over the past five years. The most recent quarterly results for September 2025 were disappointing, with profit before tax excluding other income falling 38.4% to ₹21.80 crore compared to the previous four-quarter average. Net profit after tax declined by 32.0% to ₹20.07 crore in the same period. Additionally, the half-year ROCE dropped to its lowest level at 16.12%, signalling deteriorating capital efficiency. These weak financial results have undermined investor confidence and contributed to the persistent underperformance of the stock.

Consistent Underperformance Against Benchmarks

Campus Activewear’s stock has consistently lagged behind broader market indices and sector benchmarks. Over the last three years, it has underperformed the BSE500 index in each annual period, reflecting structural challenges and investor scepticism. The stock’s negative returns contrast sharply with the positive performance of the Sensex and other indices, underscoring the difficulties faced by the company in delivering shareholder value.

Conclusion: Why Campus Activewear Is Falling

In summary, Campus Activewear’s share price decline on 17-Dec and over recent periods is primarily driven by disappointing financial results, weak long-term growth, and sustained underperformance relative to market benchmarks. Although the company maintains strong management efficiency and attractive valuation metrics, these positives have been overshadowed by falling profits, declining capital returns, and a lack of robust sales growth. The stock’s technical indicators remain bearish, and despite increased trading volumes, investor sentiment appears cautious. Institutional investor participation provides some support, but the overall market perception remains subdued given the company’s recent performance trends.

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