Motilal Oswal has reinforced its buy rating on Campus Activewear with a target price of ₹320, up from the earlier ₹305, as reported in their research report dated February 02, 2026. The broker has applied a 45x Price-to-Earnings (P/E) multiple to projected fiscal year 2028 earnings to arrive at this target. While the company's growth trajectory remains impressive, the current trailing twelve-month P/E ratio stands at approximately 50x, suggesting a premium valuation within the broader market. This compares to competitor valuations where Bata India trades at around 60x P/E and Relaxo Footwears at approximately 45x P/E, with the Indian footwear sector generally trading within a P/E range of 40x to 50x.
Campus Activewear demonstrated robust financial results with approximately 14% YoY revenue growth, driven by strategic business initiatives. The company achieved significant margin expansion with EBITDA rising 34% YoY to ₹1.1 billion and margin expanding ~280bp YoY to 18.7%. As reported by Motilal Oswal, this improvement was supported by enhanced product mix and operating leverage benefits. The company's stock was trading around ₹290 on February 4, 2026, with a market capitalization of approximately ₹35,000 crore, experiencing moderate volume activity with 1.5 million shares traded on the NSE.
The company's growth was primarily attributed to continued premiumization with average selling prices increasing 5% YoY and sneakers sales doubling YoY. Additionally, the women's category contribution increased due to new advertising campaigns, according to the broker's analysis. These factors collectively contributed to the sustained robust performance across Campus Activewear's business segments, with the strategic focus on bolstering the women's footwear category supporting significant growth in this segment.
Motilal Oswal's revised target price of ₹320 reflects confidence in the company's ability to maintain its growth trajectory, supported by improved operational metrics and strategic initiatives. However, other market analysts present a more cautious view, with some holding 'Hold' recommendations and lower price targets, highlighting a divergence in outlooks beyond the primary research report. The company's ability to sustain its premiumization strategy and manage competitive dynamics will be critical factors in justifying its current valuation and achieving future growth targets. The broader Indian apparel and footwear market is expected to continue its expansion, supported by demographic tailwinds, but sector participants must navigate input cost fluctuations and evolving consumer preferences.
