Cupid Breweries & Distilleries Ltd Hits 52-Week Low Amid Continued Downtrend

Stock Performance and Market Context

On 27 Feb 2026, Cupid Breweries & Distilleries Ltd (Stock ID: 851188) recorded an intraday low of Rs.31.94, representing a 5.00% drop on the day. This decline extends a losing streak over the past four trading sessions, during which the stock has fallen by 11.18%. The current price is substantially below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.

In comparison, the broader Sensex index opened flat but later declined by 450.04 points, or 0.58%, closing at 81,770.44. While the Sensex is trading below its 50-day moving average, the 50DMA remains above the 200DMA, indicating mixed signals in the broader market. Notably, the S&P Bse Oil Gas index hit a new 52-week high on the same day, contrasting with the underperformance of Cupid Breweries.

Long-Term and Recent Returns

The stock’s 1-year performance is markedly weak, with a return of -79.60%, starkly underperforming the Sensex’s 9.56% gain over the same period. The 52-week high for Cupid Breweries & Distilleries Ltd was Rs.159.65, highlighting the extent of the recent decline. Over the last three years, the stock has consistently underperformed the BSE500 index, reflecting challenges in both near-term and long-term growth trajectories.

Financial and Fundamental Overview

Cupid Breweries & Distilleries Ltd operates within the Beverages sector and industry, with a current Market Capitalisation Grade of 4. The company’s Mojo Score stands at 12.0, with a Mojo Grade of Strong Sell, upgraded from Sell on 3 Nov 2025. This rating reflects concerns about the company’s financial health and valuation metrics.

The company reports a negative book value, indicating weak long-term fundamental strength. Despite a reported annual net sales growth rate of 58.00% over the past five years, operating profit growth has remained flat at 0%, suggesting limited improvement in profitability. Additionally, the company carries a high debt burden, with an average Debt to Equity ratio of 0 times, which may constrain financial flexibility.

Profitability and Valuation Risks

Profitability metrics have deteriorated, with profits falling by 42% over the past year. The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) are negative, contributing to a riskier valuation profile relative to historical averages. This has led to the stock being classified as risky in terms of valuation and financial stability.

Recent quarterly results for December 2025 were flat, providing limited impetus for a reversal in the stock’s downward trend. The majority shareholding remains with promoters, which may influence strategic decisions and capital allocation going forward.

Technical Indicators and Sector Comparison

The stock’s trading below all major moving averages indicates persistent selling pressure. Its underperformance relative to the Beverages sector by 4.14% on the day further emphasises the challenges faced. The sector itself has shown mixed results, with some indices like S&P Bse Oil Gas reaching new highs, underscoring the divergence in sectoral performance.

Given the stock’s current trajectory, it remains well below its 52-week high, and the recent price action reflects a cautious market stance towards the company’s prospects.

Shareholding and Corporate Structure

The promoter group holds the majority stake in Cupid Breweries & Distilleries Ltd, maintaining significant control over the company’s strategic direction. This concentrated ownership structure may impact decision-making processes and capital deployment strategies.

Despite the challenges reflected in the stock’s price and financial metrics, the company remains an active participant in the Beverages sector, which continues to be a competitive and evolving market segment.

Summary of Key Metrics

To summarise, Cupid Breweries & Distilleries Ltd’s stock has reached a 52-week low of Rs.31.94, down 5.00% on the day and underperforming its sector by 4.14%. The stock has declined by 79.60% over the past year, with profits falling by 42%. The company’s Mojo Grade is Strong Sell, reflecting concerns over its negative book value, flat operating profit growth, and negative EBITDA. The stock trades below all major moving averages, signalling continued downward pressure.

These factors collectively illustrate the current challenges faced by Cupid Breweries & Distilleries Ltd in maintaining market confidence and financial stability.

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