Campus Activewear IPO: How good is it?

In our previous part of Campus Activewear IPO story, we elaborated on the critical details of the IPO and important information about the company. Here we will answer some questions about Campus Activewear and evaluate it on parameters like management, financials, valuations, etc. IPO questions The company/business 1) Are the company's earnings before tax more than Rs 50 crore in the last 12 months? Yes. Before tax, the company's profit was Rs 164 crore in the twelve months ended December 2021. 2) Will Campus Activewear be able to scale up its business? Yes. After the pandemic receded, the company witnessed an increase in demand, which translated into sales. Further, the company is also increasing the rate of production and integrating online and offline channels, which will help it boost its revenue. 3) Does the company have recognisable brands truly valued by its customers? Yes. 'Campus' brand is well recognised by the customers, which has given them leadership in the sportswear and athleisure market. 4) Does Campus Activewear have high repeat customer usage? No. Combining the nature of the product's durability with its presence in a competitive space with individuals as its customers, it is unlikely that the company has high repeat customer usage. 5) Does the company have a credible moat? No. Although the company has strong brand recognition, several other well recognised global brands could offer similar products. 6) Is the company sufficiently robust to major regulatory or geopolitical risks? Yes. The company derives all of its revenue only through domestic sales. 7)