The shares of this smallcap company jumped around 2 percent in Wednesday’s trading session following the announcement of its plans to expand its B2C segment over the next few years.
Price Movement:
With a market capitalization of Rs. 2,346 crores, the shares of Cupid Ltd started Wednesday’s trading session on a higher note at Rs. 86.49 compared to its previous close of Rs. 85.51.
During the trading session, the shares hit a high of Rs. 86.70, gaining around 2 percent and are currently trading at Rs. 86.40 apiece.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that is set to expand its business-to-consumer (B2C) segment in the coming years.
As per the filing, in the past seven months, the company’s entry into the B2C sector in India has generated net revenues of Rs. 12.50 crores. Moving forward, the company aims to significantly expand this segment, setting a topline target of over Rs. 50 crores for the current financial year solely from its B2C operations in India.
Furthermore, the company emphasized that it has quickly established a presence with over 40 super stockists, more than 500 distributors, and 50,000 retail touchpoints. It aims to expand this network to 1,00,000 touchpoints by the end of the current calendar year.
Moreover, the company is implementing strategic marketing initiatives to build brand recognition and enhance its distribution network. Its goals include engaging partners, improving point-of-sale visibility, and fostering retail advocacy.
The company also plans to boost its e-commerce presence through upcoming partnerships with Blinkit and Zepto.
Additionally, the company is further diversifying its product portfolio to capitalise on emerging opportunities beyond the sexual wellness market. It plans to launch almond hair oil in 4 SKUs, massage oils (Jasmine & Loban, Lavender & Loban) and perfume gift packs this month.
Management Commentary:
Dhruba Goswami, Cupid’s Business Head said, “As we continue to bring in overall efficiencies in procurement, production and domestic distribution. Our Indian B2C expansion plans places emphasis on our operational excellence and innovative and new product offerings thus positioning us well for the future.
Cupid Limited’s new product offerings have even started garnering international interest with export orders coming in for Cupid’s new range of products.”
Financials:
Looking at the company‘s financial performance, the revenue decreased by around 33 percent from Rs. 65.88 crores during the March quarter to Rs. 44.02 crores in the June quarter. On the other hand, the net profits declined by 65 percent from Rs. 23.72 crores to Rs. 8.26 crores during the same period.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 13.22 percent and a return on capital employed (RoCE) of 17.95 percent for the period spanning FY23-24. Further, the net profit margin during FY23-24 was 23.29 percent.
Company Profile:
Cupid Limited is engaged in the business of dealing, marketing, and manufacturing rubber contraceptives and allied prophylactic products under the brand name Cupid. It is one of India’s premier manufacturers of male and female condoms, water-based lubricant jelly, and IVD.
Cupid Limited boasts a production capacity of up to 480 million male condoms, 52 million female condoms, 210 million sachets of lubricant jelly, and 20 million IVD Test Kits annually.
Written By Vaibhav Patil
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
