Cupid attracts buyers on good Q2 results

Cupid rose 2.87% to Rs 275.95 at 9:40 IST on BSE after net profit rose 11% to Rs 5.95 crore on 3% increase in total operating income to Rs 22.85 crore in Q2 September 2017 over Q2 September 2016.

The announcement was made after market hours yesterday, 8 November 2017.

Meanwhile, the S&P BSE Sensex was up 152.98 points or 0.46% at 33,371.79. The S&P BSE Small-Cap index was up 204.45 points or 1.17% at 17,702.44, outperforming the Sensex.

On the BSE, 5,987 shares were traded on the counter so far as against the average daily volumes of 5,816 shares in the past one quarter. The stock had hit a high of Rs 280 and a low of Rs 274.80 so far during the day. The stock had hit a 52-week high of Rs 364.40 on 3 March 2017 and a 52-week low of Rs 256 on 25 September 2017.

The stock had underperformed the market over the past one month till 8 November 2017, dropping 6.52% compared with the Sensex's 4.41% rise. The stock had also underperformed the market over the past one quarter, falling 4.08% as against the Sensex's 3.76% rise. The scrip had also underperformed the market over the past one year, declining 14.84% as against the Sensex's 20.4% rise.

The small-cap company has equity capital of Rs 11.11 crore. Face value per share is Rs 10.

Cupid's board of directors declared first interim dividend of Rs 2 per share for the year ending 31 March 2018 (FY 2018).

Commenting on the company's performance Omprakash Garg, CMD said that the performance in Q2 September 2017 has been along the anticipated lines. During the quarter, the core business remained steady and the company was able to maintain earnings before interest, tax, depreciation and amortization (EBITDA) at 44.7%. While the company continued to optimise overheads, it stepped up emphasis on B2C vertical which it believes will drive sustainable growth going forward.

He further added that the global condom market presents a growing opportunity for Cupid, along with the emerging retail business. The company will also continue to deploy resources in expanding core B2B business into new territories through large institutional opportunities, new product registrations, and commercialization of the products currently under development.

Going forward, the company remains positive about the growth prospects for Cupid. In terms of the order book the company has confirmed orders worth Rs 67 crore and repeat orders worth Rs 6 crore for a total of Rs 73 crore. Out of this, Cupid intends to dispatch maximum possible orders during Q3 and Q4 FY 2018.

Separately, company said that it has received a supply contract worth Rs 24.13 crore from Central Medical Services Society, procurement arm for Ministry of Health, Government of India to supply male condoms. The goods will be delivered over a period of five months. The contract was awarded on competitive bidding in the tender and Cupid received 50% of the total quantity.

Cupid is a leading manufacturer of quality male and female condoms.

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