Anand Rathi gives 'subscribe' tag to Campus Activewear IPO
Premium- Campus Activewear IPO: Company is largest sports and athleisure footwear brand in India in terms of value and volume in FY21, says Anand Rathi report
Campus Activewear IPO (Initial Public Offering) is going to hit primary markets on 26th April 2022 i.e. on tomorrow. Ahead of Campus Activewear IPO subscription opening grey market has gone highly bullish on the public issue worth ₹1400 crore. According to market observers, Campus Activewear IPO GMP (grey market) today is ₹85, which is ₹25 higher from its yesterday's grey market premium of ₹60. As street experts are busy scanning financial of the company, Anand Rathi has given ‘buy’ tag to the public issue.
Campus Activewear IPO: Apply or not?
Giving ‘subscribe’ tag to Campus Activewear IPO, Anand Rathi report says that investors can rely on reasonable pricing, attractive valuation and should reckon Campus Activewear' operations in fast going footwear segment.
On valuations of Campus Activewear IPO; Anand Rathi report says, "At the high of the issue price-band ( ₹292), the stock is valued at around 66x FY20 EV/EBITDA and ~142x P/E. Footwear companies quote at an average EV/EBITDA of 35.7x/29.5x FY23e/FY24e and P/Es of 64x/51x."
On financials of Campus Activewear, the brokerage report says, "Revenue grew ~23% in FY20. The EBITDA and PAT margins ranged respectively from ~17% to 18% and ~7% to 9% over FY19-20. 9M FY22 revenue stood at Rs8.4bn and EBITDA margin was 19.4%.The RoE/RoCE were 21.9%/22.7%. FY21 net debt was ₹1bn."
“Company is largest sports and athleisure footwear brand in India in terms of value and volume in FY21 with ~17% market share in the branded sports and athleisure footwear in FY21. Campus Activewear (India) offers multiple choices across styles, color palettes, price points and an attractive value proposition and has one of the widest portfolios of footwear products with 6,388 SKUs It has a strong presence in the men’s category with +80% sales contribution over FY19-21. Its sales from premium products has increased from ~31% of sales in FY19 to ~41% in 9M FY22," the brokerage report said.
On whether one should subscribe Campus Activewear IPO or not, Anand rAthi report said, "We reckon operations in a fast-growing segment, a high and rising market share and strong financials are positives."
Campus Activewear IPO is opening on 26th April 2022 and it will remain open for bidding till 28th April 2022.
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