Societe Generale and ICICI Prudential Life Insurance Lift Campus Activewear Shares

Key Points

• Campus Activewear shares rose 1.67% on Wednesday after Societe Generale and ICICI Prudential Life Insurance Company bought shares of the company worth Rs 124 crore through bulk deals.
• The purchases by the two institutional investors come at a time when the shares of Campus Activewear have been under pressure in recent months.
• As on June 2023, promoters held 73.94% in the company.
• Campus Activewear is India's largest sports and athleisure footwear brand in terms of value and volume.
• The company's board will consider Q1 results on 10 August 2023.
• The recent bulk deals by institutional investors could be seen as a vote of confidence in the company's future prospects.

How Campus Activewear is Winning Over Investors Despite Market Challenges

Campus Activewear, the leading brand of sports and athleisure footwear in India, has been facing some tough market conditions lately. The company’s shares have been on a downward trend for the past year, losing more than 30% of their value. The reasons for this decline could be attributed to various factors, such as the impact of the COVID-19 pandemic, the rising competition from other brands, and changing consumer preferences.

However, not all is gloomy for Campus Activewear. The company has recently attracted some big-name investors who have bought shares worth Rs 124 crore through bulk deals. These investors include Societe Generale, a French multinational banking and financial services company, and ICICI Prudential Life Insurance Company, one of India’s largest private sector life insurers.

These bulk deals, which took place on Wednesday, boosted the shares of Campus Activewear by 1.67% to Rs 294.90. The investors acquired a combined stake of 1.38% in the company at Rs 295 per share.

What makes these investors bullish on Campus Activewear? What are the strengths and opportunities of the company that make it stand out from its peers? Let’s find out.

Campus Activewear: A Pioneer in Sports and Athleisure Footwear

Campus Activewear was founded in 1983 by Mr. Dinesh Gupta, a visionary entrepreneur who saw the potential of sports and athleisure footwear in India. The company started with a modest production capacity of 200 pairs per day and gradually expanded its product portfolio, distribution network, and manufacturing facilities.

Today, Campus Activewear is the largest sports and athleisure footwear brand in India in terms of value and volume. The company offers a wide range of products for men, women, and children across categories such as running, walking, training, casual, and lifestyle. The company has a strong presence in over 20,000 retail outlets across India and also sells online through its own website and other e-commerce platforms.

The company has also invested heavily in research and development, innovation, and quality control to ensure that its products meet the highest standards of performance, comfort, and style. The company has a state-of-the-art design studio in Germany, where it collaborates with international designers and experts to create trendy and functional footwear. The company also has a dedicated testing lab in India, where it conducts rigorous tests on its products to ensure durability, safety, and customer satisfaction.

Campus Activewear: A Resilient Performer Amidst Market Challenges

Campus Activewear has been able to maintain its leadership position in the sports and athleisure footwear segment despite facing several market challenges in the past year. The company has shown resilience and adaptability in dealing with the adverse effects of the COVID-19 pandemic, which disrupted its supply chain, production, and sales.

The company took several measures to mitigate the impact of the pandemic on its business operations and stakeholders. These include:

• Implementing strict health and safety protocols at its factories and offices
• Providing financial assistance and medical support to its employees and their families
• Extending credit facilities and discounts to its dealers and distributors
• Enhancing its online presence and digital marketing initiatives
• Launching new products and collections to cater to the changing consumer preferences
• Participating in social welfare activities such as donating masks, sanitizers, and food kits to the needy

As a result of these efforts, Campus Activewear was able to bounce back from the initial setback caused by the pandemic and post a steady recovery in its sales and profitability. The company’s Q4 FY23 net profit was almost unchanged at Rs 22.95 crore, while its revenue from operations dipped marginally by 1.3% to Rs 347.75 crore compared with Q4 FY22.

The company’s board will consider Q1 results on 10 August 2023. Analysts expect the company to report healthy growth in its earnings and revenue for the quarter, driven by the easing of lockdown restrictions, the festive season demand, and the launch of new products.

Campus Activewear: A Promising Investment Opportunity for Long-Term Growth

Campus Activewear has proven itself as a reliable and consistent performer in the sports and athleisure footwear segment over the years. The company has a strong brand equity, a loyal customer base, a diversified product portfolio, a robust distribution network, a sound financial position, and a visionary management team.

The company also has ample scope for growth in the future, as it plans to expand its presence in new markets, launch new products and categories, leverage new technologies and partnerships, and explore new avenues of revenue generation.

The recent bulk deals by Societe Generale and ICICI Prudential Life Insurance Company are a testament to the confidence and trust that the investors have in Campus Activewear’s long-term potential. These investors have recognized the value and opportunity that Campus Activewear offers in the sports and athleisure footwear segment, which is expected to grow at a CAGR of 15% in India by 2025, according to a report by Research and Markets.

If you are looking for a quality investment option in the footwear sector, Campus Activewear could be a smart choice for you. The company’s shares are currently trading at a reasonable valuation of 19.7 times its trailing 12-month earnings, which is lower than its industry average of 24.4 times. The company also pays a regular dividend to its shareholders, with a dividend yield of 1.02%.

Campus Activewear is a company that has been delivering excellence and innovation in sports and athleisure footwear for over three decades. It is a company that has been overcoming challenges and creating opportunities for growth and value creation. It is a company that has been winning over customers and investors alike with its products and performance.

Campus Activewear is a company that you should not miss out on.

Disclaimer: This blog post is for informational purposes only and does not constitute any investment advice or recommendation. Please do your own research and consult your financial advisor before making any investment decision.