Motilal Oswal Initiates Coverage: Positive Outlook on Buy Campus Activewear with a Price Target of Rs 305

Campus Activewear: Resilient Growth and Increasing Premiumization

Key Takeaways:

• Campus Activewear's growth accelerated to mid-teens in 2HCY26, driven by increasing premiumization, expanding retail presence, and GST rate rationalization.
• The company's EBITDA margin expanded by ~140bp YoY to ~16% in 9MFY26, driven by backward integration and rising premiumization.

Outlook and Recommendations:

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We maintain a BUY rating on Campus Activewear with a revised Target Price (TP) of INR305, premised on a P/E multiple of 45x as of Mar'28. Our long-term model projects a CAGR of:

• 12% in revenue over FY25-28E
• 18% in EBITDA over FY25-28E
• 20% in Profit After Tax (PAT) over FY25-28E

Key Drivers:

• Premiumization: We believe Campus Activewear remains a key beneficiary of premiumization in the sports & athleisure (S&A) category.
• BIS Implementation: The company is well-positioned to benefit from the implementation of the Bureau of Indian Standards (BIS) certification.
• GST-Driven Tailwinds: The rationalization of the Goods and Services Tax (GST) rate has driven growth in the S&A category.
• Apparel Expansion: The company's recent expansion into apparel offers an additional growth lever.