Campus Activewear Ltd stock dipped around 7 percent today after a stake sale comes to light. According to media reports, American Asset Management firm TPG Global plans to sell its entire 7.62 percent stake (2,32,07,692 shares) in Campus Activewear Ld via a block deal. The floor price is estimated to be Rs 345 per share with JM Financial being the sole book-running manager.
The company opened its trading session today at Rs 351 and currently trades at Rs 344.30. It showed a downside movement of about 7 percent as compared to the previous closing price of Rs 370.30.
Campus Activewear Ltd is a sports and athleisure footwear brand which is engaged in the business of manufacturing and distributing a variety of footwear like Running Shoes, Walking Shoes, Casual Shoes, Floaters, Slippers, Flip Flops and Sandals. It is operating in a single operating segment which is ‘Footwear and Accessories’. The company has a global presence with operations in India and outside India.
Digging into the financials of the company, it can be observed that the revenues and net profits have seen an upward trend on a QoQ basis. Revenues have moved from Rs 333.17 crores in Q2 to Rs 465.62 crores in Q3. Moreover, the net profit figures of the company have grown over three times from Rs 14.5 crores in Q2 to Rs 48.3 crores in Q3.
Another parameter being the profitability ratios which too have shown great improvement in the recent quarters. Starting with ROE which has moved from 9.03 percent in FY20-21 to 29.26 percent in FY21-22. The ROCE figures moved from 17.84 percent in FY20-21 to 36.33 percent in FY21-22.
The debt to equity ratio for the company has seen a reduction from 0.44 in FY20-21 to 0.41 in FY21-22.
Promoters of the company hold 74.02 percent holdings as of the quarter ending December 2022. Something to a contrast with the deeply strong financials is the stake reduction by FIIs. The same reduced from 6.15 percent in Q2 to 5.98 percent in Q3.
Written by Amit Madnani
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