Smallcap multibagger stock shoots up another 58% in a month. Do you own?
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Cupid’s rally has been steep and consistent. Over the past year, the stock has surged nearly 584%, while its year-to-date gain stands at an impressive 579.91%. In just the last six months, the stock has climbed 383%, while the three-month gain is 141.22%.
Even in shorter windows, Cupid has remained strong, rising 57.5% in one month, 20.92% in two weeks, and 9.65% in the last week.
While the latest leg of the rally is not tied to any fresh announcement, it follows two significant updates from the company in recent weeks. On Monday, Cupid announced that it had received in-principle board approval to set up its first overseas FMCG manufacturing facility in Saudi Arabia.
The facility is aimed at enhancing its regional supply capabilities across the Gulf Cooperation Council (GCC) markets and will be funded through internal accruals.
A week earlier, the company disclosed that its promoter group had reduced pledged shareholding from 36.13% to 20%, highlighting improved financial strength and long-term commitment to the business.
Technicals indicate strength
Technically, according to Trendlyne data, the stock is in a strong uptrend, trading above all key exponential moving averages (10-day, 20-day, 50-day, 100-day, and 200-day). However, with the Relative Strength Index (RSI) at 92.5, the stock is in strongly overbought territory, which could warrant a near-term pullback or consolidation.Cupid currently has a market cap of around Rs 13,952 crore and remains under ASM LT Stage 1 surveillance, with a high trailing PE ratio. Despite that, investor interest remains elevated amid strong momentum and recent strategic updates.Fundamental metrics of Cupid Ltd
According to the publicly available information on Trendlyne, the company has reported strong growth metrics, with its Revenue Growth (YoY) standing at 103.2% and Net Profit Growth (YoY) at 140.4%, both categorized as high in the industry.It also leads in Operating Profit Margin (Quarterly) at 33.6%, and ranks as a market runner-up in Operating Profit Margin (TTM) at 28.2%.
Despite this performance, valuation metrics indicate potential concerns: the Price-to-Earnings (P/E) ratio is very high at 225, and the Price-to-Book (P/B) ratio is elevated at 36.4, both flagged as high in the industry.
The institutional holding in the current quarter is low at 2.9%, and return ratios such as Return on Equity (ROE) at 11.9% and Return on Assets (RoA) at 11% are also below the industry median.
In terms of market performance, the stock has outperformed both the broader index and its sector, with Relative Performance vs Nifty 50 at 131.4% and vs Sector at 135%, highlighting strong investor interest in recent quarters.
About Cupid
Established in 1993, Cupid Ltd is a listed Indian company engaged in the manufacturing and export of personal care and wellness products. Over the years, it has diversified its offerings beyond its core portfolio to include fast-moving consumer goods (FMCG) such as sexual wellness, deodorants, perfumes, pocket perfumes, toilet sanitizers, hair and body oils, hair removal sprays, and face washes.With a strong presence in over 110 countries, the company generates a substantial share of its revenue from global markets.
The company holds long-term supply agreements with major international health organizations and adheres to stringent quality standards aligned with global compliance norms.
In 2024, it expanded production capacity by 1.5x through a strategic land acquisition in Palava, Maharashtra, aimed at supporting future growth.Also read: Steel stocks jump up to 5% on tariffs to curb imports; Tata Steel, NMDC, SAIL among top gainers
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
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