Campus Activewe. (CAMPUS)

FairStock Score: 50/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• ROE of 18.64% and ROCE of 20.10% indicate efficient capital use and possible brand strength.
• Low leverage with debt/equity of 0.31; Piotroski F-Score of 8/9 and Altman Z-Score of 6.14 show solid financial health.
• Profit growth of 18.57% outpaced sales growth of 11.16%, showing operating leverage.
• Promoter holding of 72.11% aligns management with minority shareholders.
• Positive free cash flow of ₹81 Cr, though modest relative to market cap.

Concerns

• Valuation is stretched: P/E 56.26, P/B 10.07, and EV/EBITDA 77.99.
• DCF intrinsic value of ₹141.25 and Graham Number of ₹50.78 are far below the current price; margin of safety is -411.10%.
• Free cash flow yield is only about 1% against a ₹7,932 Cr market cap.
• Sales growth of 11.16% may not justify the premium, and dividend yield is just 0.39%.

AI Analysis

When I look at Campus Activewe, I first ask what the business earns on capital. The answer is respectable—ROE is 18.64% and ROCE is 20.10%, with debt-equity of just 0.31. The latest quarter delivered ₹589 Cr of sales and ₹64 Cr of net profit. Such returns hint at brand pricing power, though I would not call it a wide moat from these numbers alone. Profit grew 18.57% on sales growth of 11.16%, so the company is turning scale into better margins. A Piotroski F-Score of 8/9 and Altman Z-Score of 6.14 reassure me on financial health. Promoter holding of 72.11% aligns the cockpit with minority owners. Operationally, this is a decent, growing footwear franchise. But buying a good business at the wrong price is a mistake. At ₹249.30, the market cap is ₹7,932 Cr, while the company generated only ₹81 Cr of free cash flow—a 1% cash yield. P/E of 56.26 and EV/EBITDA of 77.99 leave no room for disappointment. Graham's number is ₹50.78, and DCF value is ₹141.25. The margin of safety is -411.10%. Sales growth of 11.16% cannot support this premium unless growth accelerates sharply. Dividend yield is just 0.39%, so all returns depend on price. I appreciate quality, and the figures suggest a fast grower with sound finances. But I cannot make the math work at today's price. FairStock's 47/100 reflects that mixed picture. I'd wait for a lower price or several quarters of proof that growth has accelerated enough to justify the enthusiasm already in the stock.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer