Campus Activewear, a leading homegrown sports and athleisure footwear brand, saw its shares plummet to a record low of ₹282.75 in intra-day trading on Wednesday.

What Happened? The fall was driven by massive block deals, causing the stock to dip below its previous low of ₹298.05, and even its initial offer price of ₹292 per share.

After Campus Activewear debuted on the stock market on May 9, 2022, it enjoyed a record high of ₹640 on October 19, 2022.

On Wednesday, traders bought and sold around 1.43 million shares of Campus Activewear on the BSE, which represents 0.5% of the company’s total equity. Meanwhile, traders exchanged roughly 4.74 million shares, or 1.55% of the company’s total equity, on the NSE. Reports suggest that large transactions, known as block deals, could occur for up to 8 million shares, with prices ranging from ₹295 to ₹300 each.

Despite the intense competition from international brands, Campus Activewear has managed to secure a substantial 17% market share in the Indian branded sports and leisure footwear industry. However, the brand struggled in the January to March quarter (Q4FY23), with flat year-on-year revenue and profit growth due to low market demand and a surge in advertisement costs.

What do analysts say? Motilal Oswal Financial Services stated that aggressive store expansions and advertising have impacted the entire industry, leading them to reduce their EPS forecast for FY24/25E by 12%/11%. Despite this, they believe the decrease in raw material prices might improve margins or stimulate demand.

Price Action: Campus Activewear Ltd. shares were trading 4.06% lower at ₹290.70 on Wednesday afternoon.

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