Stock of this company has zoomed 468% in 6 months; to consider split, bonus

The board of directors of Cupid is scheduled to meet on January 23, 2024, to consider and approve Q3 results, proposal of stock split, bonus issue and raising of funds.

Shares of Cupid were locked in the 5 per cent upper circuit for the fourth straight day, at Rs 1,380.05 on the BSE on Monday at 12:16 PM; after the company said its board will consider stock split, bonus and fund raising plan. In comparison, the S&P BSE Sensex was down 0.6 per cent.

The stock of personal care company was trading at record high level. A combined 8,325 equity shares changed hands and there were pending buy orders for nearly 73,000 shares on the NSE and BSE.

In past 12 trading days, the stock has appreciated by 57 per cent from a level of Rs 881.20 on December 20, 2023. In past six months, the stock zoomed 468 per cent from Rs 243.15 on July 7 last year.

In an exchange filing Cupid said the meeting of the board of directors of the company is scheduled on 23/01/2024, inter alia, to consider and approve quarterly financial results for quarter ended 31.12.2023, proposal of stock split, proposal of bonus issue and proposal of raising of funds.

In December 2023, Columbia Petro Chem Private Limited and Aditya Halwasiya successfully completed Rs 113-crore open offer to acquire up to 3.47 million equity shares or 26 per cent stake of Cupid at Rs 325 per share.

The company also acquired a new land parcel in an Industrial Area near Mumbai. The acquisition will enable Cupid to amplify its production capacity by 1.5 times the existing output. As a result, the annual production capacity will be augmented by approximately 770 million male condoms and 75 million female condoms. This capacity expansion will be funded entirely through internal accruals, with no reliance on borrowings, the company said.

Additionally, Cupid is set to expand its global footprint by forging new partnerships with international players. This strategic move will not only enhance Cupid Limited's market reach but also bolster its already strong international presence to more than 105 countries globally in the sexual wellness sector.

The Indian contraceptives market is set to grow at a healthy rate of 12.2 per cent CAGR over the next 7-10 years, with a broader cultural ship among the younger end of the target market and population growth, the company said.

Cupid is India's premier manufacturer of male and female condoms; water based lubricant jelly, and IVD kits. The company boasts a production capacity of up to 480 million male condoms, 52 million female condoms, and 210 million sachets of lubricant jelly annually.

Cupid has a prominent presence in the international market and holds the distinction of being the first company in the world to attain WHO/UNFPA pre-qualification for male and female condoms. CUPID currently exports its products to over 105 countries, with over 90 per cent of its revenue generated from international markets. Furthermore, CUPID has established a long-term agreement with WHO/UNFPA.

In the coming months management expects to improve order pipeline and profitability in Cupid’s core Tendering and Third Party Manufacturing Business. A concerted entry into the FMCG-Direct to Consumer segments under the 'Cupid' brand name is also envisaged going forward, the management said on business outlook.