Strong Momentum Drives New Peak
The stock of Cupid demonstrated robust momentum, outperforming its sector by 1.38% on the day it hit this record price. Over the last two trading sessions, the stock has delivered a cumulative return of 3.74%, reflecting steady investor confidence and market interest. Notably, the share price has been trading above all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained upward trend.
Intraday volatility was significant, with a weighted average price volatility of 19.69%, indicating active trading and dynamic price movements throughout the session. Despite this, the stock maintained its gains, closing with a day change of 1.35%, compared to the Sensex’s more modest 0.15% rise.
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Exceptional Long-Term Performance
Cupid’s performance over various time horizons highlights its exceptional growth. The stock has delivered returns of 10.75% over the past week and 45.52% over the last month, significantly outpacing the Sensex’s respective returns of 0.48% and 1.36%. Over a three-month period, the stock’s return stands at 98.55%, dwarfing the Sensex’s 4.98% gain.
More impressively, Cupid has generated a return of 312.02% over the last year, compared to the Sensex’s 7.89%. Year-to-date, the stock’s return is 350.34%, while the benchmark index has recorded 9.24%. Over three and five years, the stock’s returns have been 2,570.32% and 2,841.20% respectively, far exceeding the Sensex’s 37.07% and 91.71% in the same periods. Even over a decade, Cupid’s return of 1,960.76% remains substantial, though the Sensex’s 231.15% reflects broader market growth.
Market Leadership and Financial Strength
With a market capitalisation of approximately Rs.9,043 crores, Cupid stands as the largest company in its sector, representing 50.33% of the entire FMCG segment. Its annual sales of Rs.247.08 crores account for 7.37% of the industry’s total, underscoring its dominant position.
The company’s financial results for the recent quarter further illustrate its strong operational performance. Net sales reached a quarterly high of Rs.84.45 crores, while PBDIT (Profit Before Depreciation, Interest and Taxes) and PBT less other income also marked record quarterly figures at Rs.28.41 crores and Rs.26.41 crores respectively. Net profit growth of 60.59% was recorded in the September quarter, contributing to two consecutive quarters of positive results.
Additionally, Cupid maintains a low average debt-to-equity ratio of zero, reflecting a conservative capital structure and limited reliance on external borrowings.
Valuation and Profitability Metrics
The company’s return on equity (ROE) stands at 16.2%, indicating a reasonable level of profitability relative to shareholder equity. However, the price-to-book value ratio is 23.7, suggesting a valuation that is on the higher side compared to historical averages and peers. Despite this, the stock currently trades at a discount relative to its peers’ average historical valuations.
Profit growth over the past year was 21.3%, while the stock’s return was substantially higher, reflecting a divergence between earnings growth and market valuation. The PEG ratio, which relates price-to-earnings to growth, is 6.9, indicating a premium valuation relative to earnings growth.
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Growth Trends and Sector Context
Over the last five years, Cupid’s net sales have grown at an annual rate of 12.88%, while operating profit has expanded at 13.39% per annum. These figures indicate steady, if moderate, growth within the FMCG sector. The company’s consistent returns over the last three years have outpaced the broader BSE500 index in each annual period, highlighting its relative strength within the market.
Despite the strong recent performance, some caution is warranted given the company’s valuation metrics and the presence of pledged promoter shares, which constitute 36.13% of promoter holdings. Such a level of pledged shares can exert additional pressure on the stock price during market downturns.
Summary of Recent Trading Activity
Today’s trading session saw Cupid’s stock price reach Rs.342.6, setting a new 52-week high. The stock’s outperformance relative to the Sensex and its sector, combined with its position above all key moving averages, reflects a strong technical setup. The recent two-day consecutive gains and the high intraday volatility demonstrate active market participation and investor engagement.
Overall, Cupid’s journey to this all-time high has been marked by consistent financial performance, sector leadership, and sustained market interest, making this milestone a significant event in the company’s history.
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