Campus Activewear IPO (Initial Public Offering) is going to hit the primary markets tomorrow i.e. 26th April 2022. Ahead of Campus Activewear’s IPO subscriptions, there has been a significant uptick in the gray market in terms of the public issue 1400 crores. According to Market Observers, Campus Activewear IPO Is GMP (Grey Market) Today 85, which is 25 over your yesterday’s gray market premium 60. As street experts are busy with the financial investigation of the company, Anand Rathi has given ‘buy’ tag to the public issue.
Campus Activewear IPO: Apply or Not?
Tag ‘Subscribe’ to Campus Activewear IPOThe report by Anand Rathi said that investors can count on fair pricing, attractive valuations and should consider operating campus activewear in the fast-moving footwear segment.
On the evaluation of the Campus Activewear IPO; Anand Rathi’s report says, “At the highest level of the issue price band ( 292), the stock is valued at approximately 66x FY20 EV/EBITDA and ~142x P/E. Footwear companies bid on average EV/EBITDA of 35.7x/29.5x FY23e/FY24e and P/E of 64x/51x.”
On the financial position of Campus Activewear, the brokerage report says, “Revenue grew by ~23% in FY20. EBITDA and PAT margins ranged from ~17% to 18% respectively and ~7% to 9% in FY19-20. 9M FY22 revenue stood at Rs 8.4 billion and EBITDA margin was 19.4%. RoE / RoCE were 21.9% / 22.7%. FY21 net debt was 1 billion.”
“The company is the largest sports and athletic footwear brand in India in terms of value and volume in FY 2011 with ~17% market share in branded sports and athletic footwear in FY 2011. Campus Activewear (India) offers a range of options across styles, color palettes, price points and an attractive value proposition and has one of the most comprehensive portfolio of footwear products with 6,388 SKUs. FY 19-21. Its sales from premium products have grown from ~31% of sales in FY19 to ~41% in FY22, said the brokerage report.
On whether or not to subscribe to the Campus Activewear IPO, Anand Rathi’s report said, “We believe operating in a rapidly growing segment, a high and growing market share and strong financial positives.”
The Campus Activewear IPO is opening on 26 April 2022 and will be open for bidding till 28 April 2022.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.