Campus Activewear Limited (NSE:CAMPUS) Just Released Its Second-Quarter Earnings: Here's What Analysts Think
Investors in Campus Activewear Limited (NSE:CAMPUS) had a good week, as its shares rose 3.7% to close at ₹198 following the release of its quarterly results. It was a workmanlike result, with revenues of ₹4.5b coming in 2.8% ahead of expectations, and statutory earnings per share of ₹0.79, in line with analyst appraisals. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the current consensus from Campus Activewear's seven analysts is for revenues of ₹20.5b in 2027. This would reflect a notable 8.7% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 11% to ₹5.77. Before this earnings report, the analysts had been forecasting revenues of ₹20.3b and earnings per share (EPS) of ₹5.65 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
Check out our latest analysis for Campus Activewear
There's been no major changes to the consensus price target of ₹288, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Campus Activewear, with the most bullish analyst valuing it at ₹321 and the most bearish at ₹237 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Campus Activewear is an easy business to forecast or the the analysts are all using similar assumptions.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Campus Activewear's past performance and to peers in the same industry. It's clear from the latest estimates that Campus Activewear's rate of growth is expected to accelerate meaningfully, with the forecast 18% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 8.5% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 14% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Campus Activewear to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Campus Activewear following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at ₹288, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Campus Activewear analysts - going out to 2029, and you can see them free on our platform here.
Even so, be aware that Campus Activewear is showing 1 warning sign in our investment analysis , you should know about...
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