1:1 Bonus Shares & 1:10 Stock Split: 4th April As Record Date; Buy FMCG Stock?

As of Friday's closing session, Cupid Ltd., a small-cap company in the FMCG industry, has a market valuation of Rs 2,866.63 Cr. Founded in 1993 as a public limited company with the Registrar of Companies, Maharashtra, Cupid Limited is a top producer and seller of high-quality male and female condoms, water-based lubricant jelly, and IVD kits. The company was listed on the BSE in 1995 and the NSE in 2016. The stock is in the news following the company's announcement of the record date for the 1:1 bonus share and 1:10 stock split, which caused the stock price to settle on Friday at Rs 2136.45 per share, a 5% upper circuit limit.

Cupid Stock Split & Bonus Shares News

The Board of Directors of Cupid said in a regulatory filing that for the purpose of 1:1 bonus shares i.e. 1 bonus equity share of the face value of Re. 1/- each fully paid up for every 1 existing equity share of face value of Re, 1/- each fully paid up and 1:10 stock split i.e. sub-division of 1 equity share of the face value of Rs 10/- each fully paid-up into 10 equity shares of the face value of Re. 1/- each fully paid-up, Thursday, 4th April 2024 has been fixed as the record date.

Cupid Financials

The company's revenue from operations on a stand-alone basis dipped 4.1% YoY to Rs. 40.05 crore in the December 2023 quarter from Rs. 41.76 crore in the corresponding period in 2022. Its net profit for Q3FY24 was Rs. 8.86 crore, falling 11.66% from Q3FY23's Rs. 10.03 crore. In a regulatory filing, the firm stated that its standalone EBITDA for the reported quarter of the current fiscal quarter was Rs. 12.88 crore, which is 8.52% less than the same quarter last year when it was Rs. 14.08 crore.

Cupid Share Price Target

Cupid is bullish on the Daily charts with strong support at 2007. A daily close above resistance of 2219 could lead to a target of 2670 in the near term, said AR Ramachandran from Tips2trades.

Disclaimer

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