Campus Activewear Stock Surges 14% on Strong Q4FY24 Earnings
Shares of Campus Activewear saw a significant surge of almost 14 percent in intra-day trading on Wednesday following the company’s impressive earnings report for the quarter ended March 2024 (Q4FY24).
In the March quarter, Campus Activewear reported a 42.6 percent year-on-year increase in net profit, reaching ₹32.7 crore compared to ₹23 crore in the same period last year. Additionally, the company’s revenue rose by 4.6 percent year-on-year to ₹364 crore, up from ₹345 crore in the previous year.
On the operational front, the company’s EBITDA increased by 16 percent year-on-year to ₹66.4 crore in Q4FY24, compared to ₹57.1 crore in Q4FY23. The EBITDA margin also showed improvement, reaching 18.3 percent in the quarter under review.
Following the positive earnings report, brokerage firm Motilal Oswal maintained its ‘buy’ rating on the stock with a target price of ₹295, indicating a potential upside of 17 percent.
Campus Activewear’s CEO, Nikhil Agarwal, highlighted the company’s successful expansion efforts during FY24, including the addition of 66 stores in various regions of India. Agarwal also mentioned the company’s achievement of a net-debt-free status during the fiscal year.
Despite a decline in net profit and revenue for the full financial year 2023-24, Campus Activewear remains optimistic about its future growth prospects. The company’s focus on trade distribution and new product launches has been well-received by customers, leading to increased market share.
Investors are advised to consult with financial experts before making any investment decisions based on the views and recommendations provided by analysts or brokerage firms. The stock’s recent performance and growth potential indicate a positive outlook for Campus Activewear in the coming years.
