Campus Activewear tumbles 7%, dips below IPO price amid huge block deals

The stock crashed below its issue price of Rs 292 per share, as it hit a record low of Rs 282.45 on Wednesday.

Shares of Campus Activewear hit a record low of Rs 282.45 on the BSE in Wednesday’s intra-day trade after huge block deals were executed on the counter.

The stock of footwear company fell below its previous low of Rs 298.05 touched on July 27. In the process, the stock also dipped fallen its issue price of Rs 292 per share. Campus Activewear made its stock market debut on May 9, 2022. It had hit a record high of Rs 640 on October 19, 2022.

At 09:15 AM; around 1.43 million shares representing 0.5 per cent of total equity of Campus Activewear changed hands on the BSE, the exchange data shows. On the National Stock Exchange (NSE), total 4.74 million shares or 1.55 per cent of total equity of the company changed hands, data shows. The names of the buyers and sellers were not ascertained immediately.

According to reports, the counter was expected to see a block deals for 8 million shares in the price band of Rs 295-300.

Campus Activewear is India’s largest sports and athleisure footwear brand in terms of value and volume. The company is amongst a few established national brands enjoying around 17 per cent market share in the Indian branded sports and athleisure footwear industry which is predominated by international brands.

For January to March quarter (Q4FY23), CAL had reported a weak performance as its revenue/ profit after tax growth stood flat YoY hit by subdued market demand, which was further worsened by advertisement-led 50 per cent jump in SG&A expenses that resulted in 600 bps contraction in EBITDA margin.

The ongoing weak environment has hurt revenue growth for the whole industry. This was further accentuated by aggressive store rollouts and ad spends. As a result, we cut our FY24E/25E EPS by 12 per cent/11 per cent factoring in a revenue/PAT CAGR of 19 per cent/41 per cent over FY23-25E, Motilal Oswal Financial Services had said in result update. 

The moderation in raw material prices could be the key silver lining in improving margin or pass on the benefit to revive demand, the brokerage firm said.