Shares of this rubber contraceptive products manufacturing company clocked 5 percent upper circuit after receiving an order worth Rs. 9.65 crores from the Government. The shares have delivered a multibagger return of 458 percent to its investors in six months.
With a market capitalisation of Rs. 1,841 crores, the shares of Cupid Ltd started Monday’s trading session on a higher note at Rs. 1,381.15 compared to its previous close of Rs. 1,315.40. Within, a few minutes of the opening bell the shares clocked 5 percent at Rs. 1,381.15 and also recorded as the company’s fresh 52-week high.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that they had received a purchase order for the supply of Male Condoms worth Rs. 9.65 crores from Central Medical Services Society (CMSS) and the orders would be supplied till April 2024.
Coming onto the company’s financial statement, the revenue increased marginally by 4 percent from Rs 35.20 crores during the June quarter to Rs. 36.45 crores in the September quarter. The net profits magnified by 137 percent from Rs. 2.16 crores to Rs. 5.12 crores during the same timeframe.
The product mix indicates that male condoms contributed 75 percent of revenue, while female condoms accounted for 16 percent and lubricant jelly contributed 9 percent. As of April 1st, 2023, the company’s order book stands at Rs. 177 crores.
Moreover, the company expects more orders for Male Condoms from Tanzania, South Africa, and India Female condom orders from South Africa, and Lubricant orders mainly from UNFPA.
Due to consistent operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 12.66 percent during FY 21-22 to 20.48 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 17.5 percent to 26.6 percent during the same timeframe. Furthermore, the net profit margin increased from 13.02 percent during FY21-22 to 19.82 percent during FY22-23.
Headquartered in Nashik, Cupid Ltd was incorporated in 1993. The company is in the business of dealing, marketing, and manufacturing rubber contraceptives and allied prophylactic products.
Written By Vaibhav Patil
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