CAMPUS ACTIVEWEAR LTD’s FINANCIAL & BUSINESS ANALYSIS REPORT

1. Introduction (about Campus Activewear Ltd. )

• Brief Introduction of the company

A fresh step into comfort begins with Campus Activewear Ltd, shaping up as a top name in India's sporty shoe scene. Style meets sensible pricing, catching the eye of younger crowds who want to move freely. Choices stretch from men’s kicks to women’s fits, even reaching little feet in the kids' range. 

• Industry overview

There is a sharp increase in the Indian footwear industry because of rise in the disposable income of the individuals, urbanization. Moreover, the demand for sports and casual wear has increased due to lifestyle changes. 

• Purpose of the Analysis

The main purpose of this analysis is to - 

Evaluate/Analyze the financial performance of the company

Analyse the business structure of the company 

2. Company Overview of Campus Activewear Ltd. -

• Background and History-

Campus Activewear Ltd was registered in 2008. Since 2008, the company has been constantly expanding its operations in various areas such as manufacturing capacity, distribution network and in brand presence. 

• Business Model of Campus Activewear Ltd.-

From sketch to shelf, Campus Activewear handles every step of making their shoes. Sales happen across several paths - multi-brand shops host their gear, while standalone brand stores offer focused access. Online marketplaces carry the line too.

• Key Products / Services

Their products include -

• Sports Shoes
• Running shoes
• Casual Footwear
• Sneakers

• Market Position

Footwear made by Campus isn’t flashy, yet it shows up everywhere across India. Instead of chasing trends, it sticks close to what works - low prices that make sense for students. 

3. Promoter /Founder Introduction- 

(Hari Krishna Agarwal)

4. Financial Statement Analysis=

• Income Statement evaluation -
  
  

Key Observations-

Lately, Campus Activewear keeps bringing in more money each year. About ₹1,593 crore came through the door in FY2025, up from ₹1,448 crore a year earlier - that is close to 10 percent rise. Profits jumped too, landing at roughly ₹121 crore last fiscal, much better than the ₹89 crore seen before. More people bought their products, shops spread wider, while daily operations got leaner and sharper.

Revenue Trend-

• Balance Sheet Analysis of the company-

Not much shakes under the hood financially speaking. Growth shows up clearly in assets, thanks to bigger factories alongside fuller stockrooms feeding higher sales numbers. Even so, what sits on the liability side stays tight, especially when measuring debt against ownership stakes. Ownership share holds firm, suggesting cash comes more from within instead of bank loans piling up.

• Cash Flow Analysis (of FY 2025)
  Every rupee earned through sales helped keep things moving at Campus Activewear last year. Thanks to steady customer demand, money coming in stayed ahead of what went out. Smarter handling of inventory and payments gave the business breathing room each month. 

• Key Financial Ratios (FY 2025)

Profitability Ratio - Net Profit Margin

A rise to about 7.88% marks the net profit margin for FY2025, up from 6.15% a year earlier. Better control over costs likely helped boost earnings during that time.

Liquidity Ratio – Current Ratio

The current Ratio of the company is healthy. 

Leverage Ratio – Debt to Equity Ratio

The company has relatively low debt levels.

Efficiency Ratio – Asset Turnover ratio

Asset Turnover Ratio of the company is also good, suggesting that the company utilizes the assets efficiently,

• Year-O-Year Comparison

5. Key Insights & Interpretation=

Strengths of Campus Activewear Ltd-

Footwear that works on campus keeps gaining ground among budget buyers. A shift toward wearing sporty clothes every day across India pushes interest higher for shoes meant both for movement and hanging around. This change quietly lifts the entire category where such products live.

Weaknesses of Campus Activewear Ltd-

Facing pressure from homegrown rivals and overseas players alike, the business keeps expanding but remains exposed. Relying heavily on India means a local downturn hits hard. When materials get pricier - think leather, rubber - profits feel the squeeze almost immediately.

Risk Factors of Campus Activewear Ltd-

Now here's a twist - raw material costs can jump without warning. Fierce rivalry among brands keeps margins thin. Shoppers might suddenly favor different styles or skip buying altogether. When the economy sags, people often delay picking up new shoes.

Future Outlook of Campus Activewear Ltd-

One thing's clear - more people in India now want sport shoes and clothes you can wear anywhere. Because of that, Campus might reach places it never did before. Online shopping keeps climbing, which helps too. New designs hitting the market could keep things moving forward. What happens next depends on how well they adapt along the way. 

6. Conclusion =

• Final Evaluation of Financial Health

Campus Activewear Ltd demonstrates stable financial growth with increasing revenue and improving profitability. The company maintains relatively low debt levels and a strong brand presence in the domestic sports footwear market.

• Investment or Performance Perspective

From an investment perspective, the company shows potential due to its expanding market presence, growing footwear demand, and strong distribution network. However, investors should also consider competition and cost pressures when evaluating long-term performance.

Data Sources

https://www.campusactivewear.com/

https://www.screener.in/company/CAMPUS/