Shares of Campus Activewear Ltd fell more than 5.5 percent on Tuesday, continuing its sharp downward trend that comes as investors exit the stock with large volumes.
The stock closed 5.65 percent lower at ₹425.2 per share on BSE.
After hitting a 52-week high of ₹639.3 on October 19, the stock has corrected 34.28 percent. In fact, since November 7, the stock has fallen for straight seven trading sessions, losing 21 percent of its value.
The New Delhi-based company’s September-quarter earnings reported last week too weighed heavy on the stock.
On Friday, the stock slipped nearly 6 percent after the results showed its net profit for the September quarter fell 48.5 percent to ₹14.5 crore.
The company’s total expenditure for the September quarter rose 32.9 percent on year to ₹306.70 crore. The cost of raw materials consumed surged 49.3 percent on year, and employee expenses rose 40.9 percent on year.
Further, finance cost surged 63.8 percent YoY to ₹7.65 crore. Due to rising expenses, EBITDA fell 20.2 percent on year to ₹44.18 crore in the September quarter.
Despite tepid demand and inflationary headwinds, revenue from operations for July-September increased by a robust 22.0 percent YoY to ₹3,33.2 crore, the company said in an exchange filing.
On the technical front, analysts anticipate the stock to further face the headwinds. “The stock continues to remain under pressure as it is down more than 25% this month, we are witnessing this fall with sharp volumes indicating exit by investors, the stock may continue to slip with next support placed directly at 390,” said Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One.
In the September quarter, promoters have decreased holdings from 74.10 percent to 74.03 percent, mutual funds have decreased holdings from 5.95 percent to 5.88 percent, while FII/FPI have increased holdings from 5.27 percent to 6.15 percent.
Campus Activewear made a stellar market debut on the bourses on May 09, listing at a premium of 23 percent at ₹359 on the NSE.
A MintGenie poll of 4 analysts shows a ‘buy’ call on the stock.