One of the leading manufacturers in the business of male and female condoms has surged over 1000 percent in the past year, rising from Rs 250 to its current level of Rs 2,439 per share. Furthermore, the company’s shares reached an all-time high of Rs 2,833 each on March 02, 2024.
Cupid Limited is engaged in the business of dealing, marketing, and manufacturing rubber contraceptives and allied prophylactic products under the brand name Cupid.
On March 28, the company shares were trading at Rs 2,439 per share, up 5 percent from the previous close price on the stock exchange. The company has a market capitalization of Rs 3,273 crores.
Cupid Limited predominantly relies on exports, which constitute 94 percent of its sales, while domestic sales account for the remaining 6 percent. Among its product offerings, male condoms contribute 75 percent to sales, followed by 16 percent from female condoms and 9 percent from Lubricant Jelly.
The company’s revenue from operations saw a significant growth of 20.13 percent, rising from Rs. 132.54 Crore in FY22 to Rs. 159.22 crore in FY23, accompanied by a corresponding increase in profits from Rs. 17.28 crore to Rs. 31.58 crore.
However, there was a slight decline in the company’s revenue by 5.6 percent, falling from Rs. 43 crores in Q3 FY23 to Rs. 40.78 crores in Q3 FY24. Similarly, the net profit also experienced a decrease of 11.5 percent, dropping from Rs. 10.03 crores to Rs. 8.86 crores during the same period.
On March 14, the board of directors of Cupid Limited approved the issuance of bonus shares in a 1:1 ratio, with one equity bonus share allocated for each equity share held by shareholders. April 4, 2024, has been designated as the record date for identifying eligible shareholders to receive the dividend.
Furthermore, the company has announced a stock split of its equity shares, whereby each equity share with a face value of Rs. 10 will be subdivided into 10 equity shares, each with a face value of Rs. 1.
Cupid Limited boasts a global presence spanning over 90 countries, along with a state-of-the-art manufacturing facility encompassing 100,000 square feet.
In the fiscal year 2020-21, the company experienced a surge in male condom production, reaching 480 million units. Additionally, it ventured into the medical device industry and secured orders from UNFPA for lubricant jelly.
Regarding revenue distribution, male condoms constituted 75 percent, female condoms 16 percent, and lubricant jelly 9 percent of the product mix. As of April 1st, 2023, the company’s order book amounted to Rs. 177 crore.
Looking ahead, the company anticipates increased orders for male condoms from Tanzania, South Africa, and India, female condom orders from South Africa, and lubricant orders primarily from UNFPA.
The company witnessed significant improvements in its profitability metrics, with the return on equity (RoE) rising from 12.66 percent in FY 21-22 to 20.48 percent in FY 22-23, and the return on capital employed (RoCE) increasing from 17.5 percent to 26.6 percent during the same period. Additionally, the net profit margin increased from 13.02 percent in FY21-22 to 19.82 percent in FY22-23, driven by consistent growth in operating revenue and profits year over year.
Furthermore, the company recently acquired land to expand its production capacity, aiming to increase male condom production to 1.25 billion units and female condom production to 125 million units within the next 18 to 24 months.
At the beginning of FY23-24, Columbia Petro Chem Private Limited and Mr. Aditya Kumar Halwasiya collectively acquired a 41.84% stake in the company for ₹ 159.06 crore.
According to Grandview Research, the global condom market size reached USD 10.7 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 8.57% from 2023 to 2030. This market is segmented into male and female condoms, with male condoms occupying 98.8% of the market share and female condoms holding 1.2%.
As per the recent shareholding pattern, the company’s promoters hold a 45.06% stake, while retail investors hold 54.49%. However, on March 26, Cupid Limited announced its decision to withdraw its plans to invest in TFCIL, citing various reasons.
Cupid’s shares have experienced a significant surge, with a tenfold increase of 1000% over the past 12 months, rising from Rs 252 per share on March 01, 2023, to Rs 2,733 per share on March 1, 2024. For example, an investment of Rs 10,000 in the company a year ago would now be valued at Rs 1,10,000.
Written by Omkar Chitnis
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