Cupid Stock Hits All-Time High at Rs.488, Marking a Remarkable Milestone

Strong Momentum Drives Record High

Cupid’s stock has been on a consistent upward trajectory, registering gains for 12 consecutive days and delivering a cumulative return of 25.18% during this period. Today’s price movement saw the stock outperform its sector by 1.77%, closing with a day change of 2.17%, notably ahead of the Sensex’s 0.05% movement. This momentum is further underscored by the stock trading above all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained investor interest and robust price strength.

Exceptional Performance Across Timeframes

Over multiple time horizons, Cupid’s stock has demonstrated remarkable returns compared to the broader market benchmarks. The one-month performance stands at 48.75%, while the three-month return is an impressive 122.54%, significantly outpacing the Sensex’s respective returns of -0.72% and 5.87%. The stock’s one-year performance is particularly notable at 534.82%, dwarfing the Sensex’s 8.12% for the same period. Year-to-date, Cupid has recorded a return of 545.96%, compared to the Sensex’s 8.89%. Over longer durations, the stock has delivered 3562.68% returns over three years and 3846.01% over five years, far exceeding the Sensex’s 39.18% and 78.70% respectively. Even over a decade, Cupid’s stock has yielded 2592.51%, compared to the Sensex’s 226.25%.

Financial Highlights Underpinning Growth

Cupid’s quarterly financials reveal a robust operational performance. Net sales for the quarter reached Rs.84.45 crores, marking the highest level recorded. 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) also hit a peak at Rs.28.41 crores. The company’s net profit growth of 60.59% in the recent quarter further emphasises its positive results, with two consecutive quarters showing favourable outcomes.

Market Capitalisation and Sector Standing

With a market capitalisation of Rs.12,868 crores, Cupid holds the position as the largest company within the FMCG sector, accounting for 58.62% of the sector’s total market value. Its annual sales of Rs.247.08 crores represent 7.37% of the industry’s overall sales, underscoring its significant footprint in the market.

Debt and Valuation Metrics

The company maintains a low average debt-to-equity ratio of zero, indicating a debt-free capital structure. Return on equity (ROE) stands at 16.2%, while the price-to-book value ratio is 33.8, suggesting a valuation that is on the higher side relative to book value. Despite this, the stock trades at a discount compared to its peers’ historical valuations. The price-to-earnings-to-growth (PEG) ratio is 9.8, reflecting the relationship between the stock’s price, earnings growth, and valuation.

Volatility and Shareholding Considerations

Today’s intraday volatility was recorded at 54.15%, indicating notable price fluctuations within the trading session. Additionally, 36.13% of promoter shares are pledged, a factor that may influence stock price movements during market downturns.

Long-Term Growth and Industry Context

Over the past five years, Cupid’s net sales have grown at an annual rate of 12.88%, while operating profit has expanded at 13.39% annually. These figures indicate steady growth within the company’s core operations. The stock’s performance relative to the BSE500 index has been consistently strong, with outperformance recorded in each of the last three annual periods.

Summary of Market Position

Cupid’s position as the largest FMCG company by market capitalisation, combined with its strong sales and profit metrics, highlights its dominant role in the sector. The stock’s recent all-time high of Rs.488 is a testament to its sustained market presence and operational scale. While valuation metrics suggest a premium pricing, the company’s financial results and market share provide context for this positioning.

Conclusion

The achievement of an all-time high price for Cupid’s stock marks a significant milestone in its market journey. Supported by strong quarterly results, consistent returns over multiple timeframes, and a commanding sector presence, the stock’s performance reflects a combination of operational strength and market confidence. Investors and market watchers will note the stock’s ability to maintain momentum amid volatility and its standing as a key player in the FMCG industry.

Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Saving Now →