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CAMPUS ACTIVEWEAR LIMITED
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IPO Details:

           

   Incorporated in 2005, Campus Active wear Limited is India's largest sports and athleisure footwear brand. The company manufactures and distributes a variety of footwear like Running Shoes, Walking Shoes, Casual Shoes, Floaters, Slippers, Flip Flops and Sandals, available in multiple colours, styles and at affordable prices. Campus Active wear sells its products through online platforms and offline stores. It has a pan-India trade distribution network, with over 400 distributors in 28 states and 625 cities. The company also has 18,200 retailers across India. The company owns and operates five manufacturing facilities across India with an installed annual capacity for assembly of 25.60 million pairs as of September 30, 2021.

 

IPO Opening Date

Apr 26, 2022

IPO Closing Date

Apr 28, 2022

Issue Type

Book Built Issue IPO

Face Value

₹5 per equity share

IPO Price

₹278 to ₹292 per equity share

Market Lot

51 Shares

Min & Max Order Quantity

51 & 663 Shares

Min & Max application amount

₹ 14,892& ₹ 193,596

Listing At

BSE, NSE

Issue Size

47,950,000 Eq Shares of ₹5
(aggregating up to ₹[.] Cr)

Offer For Sale

47,950,000 Eq Shares of ₹5
(aggregating up to ₹[.] Cr)

Basis of Allotment Date

May 4, 2022

Initiation of Refunds

May 5, 2022

Credit of Shares to Demat Account

May 6, 2022

IPO Listing Date

May 9, 2022

Promoters

 HARI KRISHAN AGARWAL  AND NIKHIL AGARWAL

Retail portion

 35%

Employee Reservation

2,00,000 Eq Shares

Employee Discount

₹ 27 per share

Registrar

Link Intime India Private Limited

Company Profile :

             

It is the largest sports and athleisure footwear brand in India in terms of value and volume in Fiscal 2021.  The company has introduced brand ‘CAMPUS’ in 2005 and are a lifestyle-oriented sports and athleisure footwear company that offers a diverse product portfolio for the entire family. It offers multiple choices across styles, color palettes, price points and an attractive product value proposition.

It is one of the fastest growing scaled sports and athleisure footwear brand, being brand  with over 200 Cr revenue in Fiscal 2019. It had an approximately 15% market share in the branded sports athleisure footwear industry in India in FISCAL 2020, which increased to 17% in FISCAL 2021. It is one of the few established Indian brands in a segment which is primarily dominated by international market.

Object of the issue :

 

To achieve the benefits of listing the equity shares on the stock exchanges and to carry out the offer for sale

The company will not receive any proceeds from the Offer for Sale.

Company financial :

 

Particulars

For the year/period ended ( Rs in Cr)

 

 

31-Dec-21

31-Dec-20

31-Mar-21

31-Mar-20

31-Mar-19

TOTAL ASSET

884.6

668.8

684.7

719.2

505.5

TOTAL REVENUE

843.9

439.4

715

734.1

596.6

PROFIT AFTER TAX

84.8

16.8

26.8

62.3

38.6

 

Competitive Strengths :

  • India's largest sports and athleisure footwear brand and fastest growing scaled sports and athleisure footwear brand.

 

  • Sustained focus on design and product innovation facilitating access to the latest global trends and styles through our fashion forward approach.

 

  • Difficult to replicate integrated manufacturing capabilities supported by robust supply chain.

 

  • Robust omnichannel sales and distribution network with pan-India presence and move to premium category.

 

  • Strong brand recognition, innovative branding and marketing approach.

 

  • The experienced management team.

 

Comparison with the peer :

NAME OF THE COMPANY

NET INCOME ( cr)

Basic EPS

P/E

RoNW %

CAMPUS ACTIVE WEAR

715.08

0.88

NA

8.6

PEER GROUP

 

 

 

 

BATA INDIA LIMITED

1802.5

-6.95

NA

-5.08

RELAXO FOOTWEARS LIMITED

2381.9

11.74

104.93

18.54

DIVERSIFIED TOTAL DISRTRIUTION :

REVENUE SPLIT (by city)

Key Risk Factors

  • If the company is  unable to anticipate product trends and consumer preferences and develop successful new products, it may not be able to maintain or increase its revenues and profits.

 

  • The sports and athleisure footwear industry is highly competitive, and if company  fail to compete effectively, its business, results of operations and financial condition may be adversely affected.

 

  • Company’s business is affected by seasonality, which could result in fluctuations in its operating results.

 

  • Company’s online sales are dependent on sales channels controlled by third party online market places and any inability to utilize these channels or significant changes to business arrangements with these market places may impact its revenue from operations, cash flows and profitability.

 

  • Company has  certain contingent liabilities, which, if materialized, may adversely affect financial condition and results of operations .

 

  • Company rely on third parties to manufacture certain products. Any failure by or loss of a third party manufacturer could result in delays and increased costs, which may adversely affect the business.

 

  • Company has  limited control over the ultimate retail sales by the distributors and retailers and its image and business may be adversely affected if its distributors or retailers fail to adhere to company’s distribution policies and standards.

 

  • Inflation in India could have an adverse effect on company’s profitability and if significant, on its financial condition.

 

Summary

     

       Campus introduced their brand “ CAMPUS” in 2005 and it’s a lifestyle-oriented sports and athleisure footwear company that offers a diverse product portfolio for entire family. Campus offers multiple choices across styles, colour palettes, price points and an attractive product value proposition.

       On valuation front Campus activewear limited  price band is ₹278-₹292 per share. If we take last 3 years average EPS of 1.40 and upper price band of ₹292 , P/E ratio comes out to 208x. If we take EPS of FY21 of 0.88 and upper price band of ₹292, P/E ratio comes out to 331x whereas if we take TTM DEC 21 EPS of ₹3.12 the company is going to list at a P/E ratio of 93.72X and the average industry peer group P/E ratio stood at 98.49x which makes Campus activewear limited quite attractive. Also as per the management company has suffered a setback in margins for FY21 on account of adjustments for depreciation, tax and amortisation as one time expense. The sales were also impacted due to pandemic. Company has also incurred higher staff welfare with payment and no production for nearly 5 months due to COVID and now its almost back on track and posed for bright prospects with rising demand for its production in Tier 1 and other major metros. Looking from the future prospective and expecting pre-COVID normalcy we recommend our clients to “SUBSCRIBE FOR LONG TERM”

 

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