Cupid shares gain 7% in trade on bourses; check what's fuelling the rally?

Shares of Fast-Moving Consumer Goods (FMCG) company Cupid were high in demand on the bourses on Thursday after the company announced a strategic investment in value retail chain player Baazar Style Retail. Following the news, the company's share price climbed 7.70 per cent to log an intra-day high of ₹405.6 per share on the NSE on Thursday.

 

Although the counter pared some gains later in the session, it continued to trade higher. At 02:22 PM, Cupid shares were trading at ₹398.10 per share, up 5.71 per cent from the previous close of ₹376.60 on the NSE. The benchmark Nifty50, meanwhile, was quoted at 25,215, up 44 points or 0.18 per cent. The company’s market capitalisation stood at ₹10,689.02 crore on the NSE on January 22.

 

Cupid shares have a 52-week range of ₹526.95–₹55.75 per share on the NSE.

Here's why Cupid shares were ruling higher on bourses

The northward movement in the Cupid share price came after the company announced a strategic investment of ₹331.53 crore in Baazar Style Retail. The investment, to be made over 18 months and funded through internal accruals, marks a significant step in Cupid’s strategy to strengthen its retail presence, improve market access and penetration, and accelerate growth across high-potential regions, according to the filing submitted by the company.

 

"Style Baazar’s extensive store footprint will enable Cupid to deepen its presence in existing markets while also entering new regions with greater speed and efficiency. With Cupid’s products to be immediately available across Style Baazar’s 250+ stores, the partnership will strengthen last-mile reach and shelf presence from day one. As Style Baazar advances its expansion plans to scale up to over 500 stores in the next two to three years, Cupid’s FMCG offerings are expected to grow alongside this network, multiplying consumer touchpoints and improving brand visibility," the company said in a release.

 

The investment will also support the faster rollout of Cupid’s expanded product portfolio, leveraging Style Baazar’s strong store-level execution and consumer insights to enhance in-store visibility, merchandising effectiveness, and customer engagement across priority markets.

 

Cupid Limited expects ₹150 crore of incremental revenue in FY27 from the Style Baazar ecosystem, with a defined ramp-up to ₹500 crore of annual business within three years, as the same fast-expanding ecosystem scales across distribution, categories, and consumer touchpoints.

 

"By combining Cupid’s manufacturing scale, brand-building strengths, and supply chain capabilities with Style Baazar’s established retail platform, the collaboration is expected to create a more integrated go-to-market approach. This alignment will help Cupid achieve faster geographic expansion, improved distribution efficiency, and sustained growth in its FMCG business," said Cupid.

 

Commenting on the transaction, Aditya Kumar Halwasiya, Chairman & Managing Director of Cupid, said, “This strategic investment marks an important step in strengthening our retail presence and expanding consumer reach. Style Baazar’s established network of over 250 stores provides us with a strong platform to scale our FMCG product portfolio across key regional markets. As the store network expands to over 500 locations in the coming years, our products will be an integral part of that growth, enabling wider availability, improved visibility, and deeper engagement with consumers.”