Motilal Oswal has maintained a 'Buy' rating on Campus Activewear with a target price of Rs 290. While the brokerage highlights long-term growth from its premium strategy, the stock has been trading near Rs 197, reflecting market caution amid intense competition and recent management changes.
Motilal Oswal has issued a bullish outlook on Campus Activewear, setting a target price of Rs 290. This brokerage report comes at a time when the company's stock has been trading near Rs 197, a level close to its 52-week low. The gap between the brokerage’s target and the current market price suggests a difference in how investors and analysts currently view the company's growth path.
The brokerage’s positive view is built on the company's strategy to move toward higher-value products, often described as sneakerization. Campus Activewear is focusing on the performance and lifestyle footwear segments to capture more of the market. The management is also expanding its direct-to-consumer and exclusive brand outlet retail network to reduce dependence on traditional channels and reach customers directly.
Financially, the company reported growth in the first quarter of fiscal year 2027. Revenue rose by approximately 12.2% compared to the same period last year, and profit after tax grew by 17.7%. The company maintained operating margins of around 15.9%, showing its ability to handle costs during a period of expansion.
Despite the brokerage's confidence, the stock has faced downward pressure, indicating that the market remains cautious. A key area of concern for investors is the intense competition in the value-focused footwear segment. Brands like Abros and Asian Footwears have gained traction, putting pressure on market share and pricing power. Additionally, the company is dealing with internal transitions following the resignation of its Chief Financial Officer, Sanjay Chhabra, in June 2026.
The success of the company's current strategy will depend on its ability to execute its premium product plans while keeping operational costs in check. Investors may watch for future updates regarding market share gains in the athleisure segment, the stability of management, and the company's ability to defend its profit margins against rising input and labor costs. The market’s reaction to upcoming quarterly results will be an important indicator of whether investor sentiment aligns with the brokerage's growth outlook.