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    Campus shares gain 11% in five days as Street cheers 3-fold jump in profit

    market | IST

    Campus shares gain 11% in five days as Street cheers 3-fold jump in profit

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    Shares of Campus Activewear were trading in the green on Wednesday as the firm reported over three-fold increase in its consolidated net profit and the management said it not worries about competition

    Campus Activewear's CEO Nikhil Aggarwal is not worried about competition from private labels and believes that the company is the only brand scaling all price points. "From Rs 800 to Rs 3,000, we address almost 85 percent of the addressable market pan India," said Aggarwal.
    “There must be like 200 or so private labels in the country. But these are all like very, very small, regional players, and there is no true-blue competition for Campus,” he said.
    Shares of Campus Activewear have rallied more than 11 percent in the last five days as against the benchmark BSE Sensex which rose a modest 3 percent during the period.
    The stock gained over 1 percent in early trade on Wednesday, a day after the firm reported over three-fold increase in its consolidated net profit for the fourth quarter ended March 2022.
    However, since a strong debut on the exchanges on May 9, the stock has erased 1.8 percent of investors’ wealth.
    The footwear maker’s revenue from operation rose 28.07 percent to Rs 352.33 crore in the January to March 2022 period.
    Aggarwal also said that the company has grown historically, last 10 years or even the last five years, at a 26 to 27 percent CAGR (compound annual growth rate) and it wasn’t even the market leader at that point. So there is no reason that the company should grow lesser than that going forward.
    The shoemaker’s CEO also said that though it is a north-based brand, it has diversified into the western south as well in the last two-three years. North, east and central are core markets, which contribute about 55 percent of the top line. The balance of 45 percent basically comes in from west and south and some bit from central, he said.
    Aggarwal also commented on the 180 percent growth of Campus’ online channel.
    Online contributes about 35 percent and 5 percent comes from D2C offline, the firm’s own stores operating in the model of the company opened company-operated stores (COCOs). “We are seeing significant growth in all the three channels in FY22, especially from online channels,” he said.
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