Fundamental Analysis and Market Outlook of Cupid Ltd: A Rising Star in Contraceptives & IVD Kits

Cupid Ltd, established in 1993, has solidified its position as one of India’s premier manufacturers of contraceptives, personal lubricants, and IVD kits. From being the world’s first company to receive WHO/UNFPA prequalification for both male and female condoms to securing long-term agreements with international health organizations, Cupid Ltd has made significant strides in its industry. In this article, we analyze the company’s financial performance, market expansion, and future growth prospects.

Take a glance at balance sheet dashboard and lets understand step by step

Cupid Ltd: A Snapshot of Success

Cupid Ltd manufactures a range of products, including male and female condoms, water-based lubricants, and in-vitro diagnostic (IVD) kits like Pregnancy Test Kits, Covid-19 Antigen Test Kits, HIV Test Kits, Dengue Test Kits, and Malaria Antigen Test Kits. It operates under its own brands, such as Cupid, Big Dom, Hi-Life, Bull, Fantasy, Dsire, Stud, and Green Love.

Cupid Ltd’s revenue is heavily skewed towards contraceptives and lubricants, accounting for 92% of its total income in FY24. The company’s IVD products contribute 2%, while the remaining 6% is generated from other product lines.

Global Presence and Expansion Plans

Cupid Ltd exports its products to over 105 countries, with international markets contributing over 90% of its revenue. With the backing of WHO/UNFPA and long-term agreements with major global health organizations, Cupid Ltd continues to expand its presence on the global stage.

The company is expanding its manufacturing capabilities. In December 2024, Cupid Ltd acquired land near Mumbai, aiming to boost its production capacity to 1.25 billion male condoms and 125 million female condoms by FY26. This strategic move is set to position the company as a dominant player in the contraceptive market.

Financial Overview: A Closer Look at Cupid Ltd’s Performance

Let’s delve into Cupid Ltd’s financial performance over the last few years, as highlighted in the graph below:

From March 2018 to March 2023, Cupid Ltd witnessed fluctuating trends in its net profit, operating profit, and sales figures:

• Sales surged from ₹81 crore in March 2018 to an estimated ₹198.27 crore by March 2025, showcasing a steady upward trend.
• Net Profit ranged between ₹17 crore and ₹40 crore during this period, with a predicted rise to ₹45.74 crore by March 2025.
• Operating Profit followed a similar growth trajectory, climbing from ₹27 crore in March 2018 to an expected ₹61.42 crore in March 2025.

Key Metrics and Asset-Liability Distribution

• Earnings Per Share (EPS): Cupid Ltd’s EPS jumped from ₹0.64 in March 2018 to ₹1.49 in March 2024, with predictions indicating a rise to ₹1.71 by March 2025. This highlights consistent value creation for shareholders.

• Operating Profit Margin (OPM): Cupid’s OPM peaked at 32.50% in March 2020 before stabilizing around 32.02% in 2024. The margin is expected to remain healthy at 32.93% in March 2025.

• Return on Equity (ROE): Cupid Ltd’s ROE has exhibited volatility, peaking at 38.83% in March 2020. However, the company’s commitment to increasing shareholder value is evident in its stable future projections of 18.16% by March 2025.

• Asset Distribution: As of March 2024, Cupid’s assets are diversified, with ₹135 crore in investments, ₹58 crore in fixed assets, and ₹128 crore in other assets

• Liability Distribution: On the liability side, Cupid Ltd carries ₹192 crore in reserves, ₹12 crore in borrowings, ₹13 crore in equity capital, and ₹103 crore in other liabilities.

Key Corporate Developments

Cupid Ltd has made several noteworthy advancements in recent years:

• Strategic Land Acquisition: In December 2024, Cupid Ltd acquired land near Mumbai to expand its production of male and female condoms.
• New Orders: In April 2024, Cupid Ltd secured a major order to supply female condoms to Brazil, worth ₹23.07 crore, expected to be fulfilled by Q2 FY25.
• Product Diversification: The company recently introduced a deodorant product line for both men and women, further diversifying its product portfolio.
• Management Changes: Following a 41.84% stake acquisition by Columbia Petro Chem Private Limited and Mr. Aditya Kumar Halwasiya in October 2023, Cupid Ltd appointed Mr. Kuldeep Halwasiya as Chairman and Mr. Aditya Halwasiya as Managing Director.
• Bonus Shares: In April 2024, Cupid Ltd allotted 1.34 billion bonus equity shares in a 1:1 ratio, enhancing shareholder value.
• Convertible Warrants: The company issued 22,00,000 convertible warrants at ₹1,751 each in February 2024, raising ₹96.30 crore for future expansion.

Now checkout the performance of stock starting from 2018 to till date

Conclusion: Cupid Ltd’s Path Forward

With a robust global presence, strategic capacity expansion plans, and consistent financial performance, Cupid Ltd is well-positioned for sustained growth. The company’s focus on high-quality contraceptives and IVD products, along with its entry into new markets like deodorants, demonstrates its adaptability and forward-thinking approach. Cupid Ltd is a company to watch, as it continues to strengthen its market leadership in the coming years.

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