Campus Activewear shares rally 13% after Q4 results. Should you buy, sell or hold?

"Despite a challenging business environment, we remained committed to strengthen our balance sheet. The Company repaid its borrowing of INR 156 Crore in FY24, thereby achieving net-debt free status during FY24. Additionally, we have made significant improvement in our working capital days from 108 days in FY23 to 79 days in FY24 led by lower inventory and conscious trimming of receivable days," said , CEO of Campus Activewear.

Here is how brokerages viewed the :



The ongoing weak environment, coupled with the churn in distributors and decline in O2O business partners, has hurt revenue growth. However, soft

growth in the TD channel offset the O2O/B2B business declines. Elevated SG&A expense will be a headwind for EBITDA margin improvement.

Motilal has retained a 'buy' rating for Campus with a target of Rs 295.

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Premiumisation/ASP-led growth will be lower as the company has pivoted to the mid/economy segment. On the balance sheet side, the reduction in debt and receivables is positive. Volume delivery has lagged expectations and the pace of recovery in the same & sustainability of margins will be a key monitorable for the stock in the near term, in JM Financial's view.

has maintained a 'buy' rating on the stock with a target price of Rs 285 with a view of 12 months.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)