Strong Momentum Drives New Peak
The stock of Cupid has demonstrated robust momentum, trading above all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. Today’s intraday high of Rs. 456.55 represents a 2.02% rise, with the stock outperforming its sector by 1.7%. Over the past eight consecutive trading days, Cupid has delivered a cumulative return of 16.74%, underscoring consistent upward movement.
Volatility has been notable, with an intraday weighted average price volatility of 39.77%, indicating active trading and dynamic price fluctuations throughout the session. The stock’s one-day gain of 1.53% also surpasses the Sensex’s 0.58% movement, highlighting relative strength in the broader market context.
Exceptional Returns Across Time Horizons
Cupid’s performance over various periods reveals a striking trend of outperformance. Over the last week, the stock has recorded a 10.99% return compared to the Sensex’s 0.24%. The one-month return stands at 34.88%, dwarfing the Sensex’s 0.22%. More impressively, the three-month return is 108.51%, while the Sensex has moved 3.97% in the same period.
Longer-term returns further emphasise the company’s market strength. Over the past year, Cupid has delivered a return of 476.88%, vastly exceeding the Sensex’s 9.46%. Year-to-date figures show a 499.33% gain against the Sensex’s 9.32%. Extending the horizon, the three-year return is an extraordinary 3608.98%, and the five-year return is 3950.37%, both significantly outpacing the Sensex’s respective 40.43% and 85.67%. Even over a decade, Cupid’s return of 2358.16% surpasses the Sensex’s 233.80%, illustrating sustained growth over an extended period.
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Financial Highlights Underpinning the Stock’s Rise
Cupid’s recent quarterly results have shown positive trends. Net profit growth of 60.59% was recorded in the September quarter, accompanied by the highest quarterly net sales of Rs. 84.45 crores. Profit before tax excluding other income stood at Rs. 26.41 crores, reflecting a growth of 139.6% compared to the previous four-quarter average. Earnings before depreciation, interest, and taxes (PBDIT) reached Rs. 28.41 crores, the highest quarterly figure to date.
The company’s debt-to-equity ratio remains at zero on average, indicating a debt-free capital structure which supports financial stability. With a market capitalisation of Rs. 12,054 crores, Cupid is the largest entity within its FMCG sector, representing 57.80% of the sector’s total market cap. Annual sales of Rs. 247.08 crores account for 7.37% of the industry’s total sales, underscoring its significant market presence.
Valuation and Growth Considerations
Despite the strong returns, the company’s net sales have grown at an annual rate of 12.88% over the past five years, with operating profit expanding at 13.39% annually during the same period. Return on equity (ROE) stands at 16.2%, while the price-to-book value ratio is 31.6, indicating a valuation level that is relatively high compared to historical averages. The stock currently trades at a discount relative to its peers’ average historical valuations.
Profit growth over the past year has been 21.3%, contrasting with the stock’s return of 476.88% in the same timeframe. The company’s price-to-earnings-to-growth (PEG) ratio is 9.2, reflecting the relationship between valuation and earnings growth.
Promoter shareholding includes 36.13% pledged shares, which may exert additional pressure on the stock price during market downturns.
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Sector Leadership and Market Position
Cupid’s dominant position within the FMCG sector is reflected not only in its market capitalisation but also in its consistent returns. The stock has outperformed the BSE500 index in each of the last three annual periods, highlighting its resilience and market strength. This leadership role is further emphasised by its substantial contribution to sector sales and its ability to maintain positive quarterly results consecutively.
Trading activity and price movements suggest that the stock remains a focal point within the FMCG space, with its recent all-time high serving as a testament to its sustained market relevance and financial performance.
Summary of Key Metrics
Cupid’s stock price today reached Rs. 456.55, marking a new 52-week high. The stock has outperformed the Sensex and its sector across multiple time frames, with returns ranging from 10.99% over one week to nearly 4,000% over five years. Financially, the company has reported record quarterly sales and profits, alongside a debt-free balance sheet. Valuation metrics indicate a premium level, balanced by strong historical returns and sector leadership.
These factors collectively illustrate the journey of Cupid’s stock to its current peak, reflecting a combination of operational performance, market positioning, and investor engagement.
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