The share price of one of the top producers of both male and female condoms has increased by more than 1000 percent in the last year, from Rs 250 to Rs 2,439 now. Additionally, on March 02, 2024, the company’s shares hit an all-time high of Rs 2,833 apiece.
Under the Cupid brand, Cupid Limited is a company that deals in, markets, and produces rubber contraceptives and related preventive goods.
The company’s shares were up 5% from the previous close price on the stock exchange as of March 28 at Rs 2,439 per share. The market value of the company is Rs 3,273 crores.
Cupid Limited’s sales are primarily derived from exports, making up 94% of total sales, with domestic sales making up the remaining 6%. Out of all the products it sells, male condoms account for 75% of sales, while female condoms make up 16% and lubricant jelly accounts for 9%.
The company’s activities showed a notable 20.13 percent increase in sales, from Rs. 132.54 crore in FY22 to Rs. 159.22 crore in FY23. Profits also increased, from Rs. 17.28 crore to Rs. 31.58 crore.
The company’s sales did, however, somewhat decrease by 5.6%, from Rs. 43 crores in Q3 FY23 to Rs. 40.78 crores in Q3 FY24. Similarly, during the same period, the net profit decreased by 11.5 percent, from Rs. 10.03 crores to Rs. 8.86 crores.
The Cupid Limited board of directors authorized the issue of bonus shares on March 14 in a 1:1 ratio, allocating one equity bonus share for each equity share that shareholders own. The record date for determining which stockholders are qualified to receive the dividend is April 4, 2024.
Additionally, the business has declared a stock split of its equity shares, in which 10 equity shares, each with a face value of Rs. 1, would be created from each equity share, which formerly had a face value of Rs. 10.
Cupid Limited is a multinational company with operations in more than 90 countries with a 100,000 square foot state-of-the-art production plant.
The corporation saw a spike in male condom production in the 2020–21 fiscal year, hitting 480 million units. It also dabbled in the medical equipment market, obtaining orders for lubricating jelly from UNFPA.
In terms of revenue share, the product mix consisted of 75% male condoms, 16% female condoms, and 9% lubricant jelly. The company had Rs. 177 crore in its order book as of April 1st, 2023.
In the future, the company expects to see a rise in orders from Tanzania, South Africa, and India for male condoms; orders for female condoms from South Africa, and orders for lubricant mostly from UNFPA.
The return on equity (RoE) increased from 12.66 percent in FY 21–22 to 20.48 percent in FY 22–23, while the return on capital employed (RoCE) increased from 17.5 percent to 26.6 percent in the same period, indicating notable increases in the company’s profitability indicators.
Additionally, year over year growth in operating revenue and earnings drove the net profit margin up from 13.02 percent in FY21–22 to 19.82 percent in FY22–23.
In addition, the company recently bought land to enhance the amount of condoms it can produce. In the next 18 to 24 months, it hopes to produce 1.25 billion male condoms and 125 million female condoms.
For ₹ 159.06 crore, Mr. Aditya Kumar Halwasiya and Columbia Petro Chem Private Limited jointly purchased a 41.84% share in the business at the start of FY23–24.
Grandview Research estimates that the size of the worldwide condom market was valued at USD 10.7 billion in 2022 and that it would expand at a compound annual growth rate (CAGR) of 8.57% between 2023 and 2030.
Male and female condoms make up the two segments of this market, with male condoms accounting for 98.8% of the market share and female condoms for 1.2%.
Retail investors own 54.49% of the company’s shares, while promoters own 45.06%, according to the most recent shareholding pattern. On the other hand, Cupid Limited declared on March 26 that it was abandoning its intentions to invest in TFCIL, giving a number of justifications.
With a tenfold rise of 1000% over the last 12 months, Cupid’s shares have seen a notable surge, rising from Rs 252 per share on March 01, 2023 to Rs 2,733 per share on March 1, 2024. For instance, a Rs 10,000 investment made in the company a year ago would now be worth Rs 1,10,000.
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