Motilal Oswal has issued a buy rating on Campus Activewear with a target price of ₹290 in its research report dated October 11, 2026. According to the brokerage's analysis, the recommendation is based on 35x September 2028 EPS valuation. The firm attended the company's analyst meet and emerged with a constructive outlook on management's growth strategy.
Management at Campus Activewear expressed mid-teens organic growth ambition, supported by volume growth, premiumization, and expansion into new categories including performance footwear. As reported by Motilal Oswal, the company indicated openness to inorganic opportunities such as brand licensing and M&A to strengthen its premium portfolio. However, any such transactions would need to be ASP and margin accretive. The company is aiming for steady growth by selling more shoes, launching premium products, and stepping into new areas like performance footwear.
According to Motilal Oswal's analysis, the company expects ~15%/18%/23% revenue/EBITDA/PAT CAGR over FY26-29E. The growth is anticipated to be driven by equal contributions from volume and ASP growth. The brokerage notes that management remains confident of sustaining YoY margin expansion, aided by an improving product mix and calibrated price hikes, which it does not intend to roll back even if raw material prices moderate.
After the recent sharp correction in the stock price, Motilal Oswal considers the risk-reward compelling. The brokerage reiterates its buy rating on Campus Activewear with the ₹290 target price, emphasizing that their estimates do not factor in any inorganic expansion opportunities. The firm remains pretty upbeat about the company's future, expecting solid financial gains ahead with the projected ~15% CAGR over FY26-29E.
