1:10 Split, 1:1 Bonus Soon: Rs 2,130 Smallcap Stock In Focus, Co Makes Big Announcement Ahead Of Splitting

Cupid, India's premier manufacturer of male and female condoms, personal lubricants, and IVD kits, is going to split in the ratio of 1:10 soon. And not just that this small-cap stock is set to reward investors with bonus issues as well. Ahead of splitting, Cupid made a big announcement of withdrawing its plans to invest in TFCIL due to various reasons.

Cupid-TFCIL Deal:

As per the regulatory filing on March 23, the company said that after careful consideration and thorough analysis of market conditions, strategic priorities, and potential risks, Cupid Limited has determined that pursuing an investment in TFCIL being a non-core investment is not aligned with Cupid Limited's current objectives and long-term vision.

Kuldeep Halwasiya, Chairman at Cupid said, "While we initially explored the possibility of diversifying our portfolio through investment in TFCIL, upon extensive and subsequent deliberation we have concluded that focusing on our core strengths at Cupid Limited is our top priority."

Cupid remains committed to delivering superior value to its stakeholders and will continue to focus on strengthening its core business areas, enhancing operational efficiencies and pursuing opportunities that align with its strategic objectives.

Accordingly, CUPID shares will be in focus this week.

CUPID Share Price:

Last week on BSE, CUPID shares stood at Rs 2,136.45 on Friday, hitting a 5% upper circuit with a market cap of Rs 2,866.63 crore.

CUPID shares are currently up by nearly 808% from its 52-week low of Rs 235.30 apiece. While the stock's 52-week high is at Rs 2,833.00 apiece.

CUPID Stock Split:

The company announced a 1:10 stock split, meaning a sub-division of 1 (One) Equity Share of the face value of Rs 101 each fully paid up into 10 (10) Equity Shares of the face value of Re. 1/- each fully paid up.

The record date for the stock split is fixed on April 4, 2024.

CUPID Bonus Issue:

The company is planning bonus issuance of 1:1 -- meaning -- 1 (One) Bonus Equity Share of the face value of Re. 1l- each fully paid up for every 1 (One) existing Equity Share of Face Value of Re, 1/- each fully paid up.

The record date is the same as the stock split.

CUPID Earnings:

In Q3FY24, CUPID's revenue from operations grew by 16% from Rs. 34.46 Cr in Q2FY24 to Rs. 40.05 Cr in Q3FY24. While EBITDA increased by 132% from Rs. 5.22 Cr in Q2FY24 to Rs. 12.15 Cr in Q3FY24. And lastly, PAT increased by 73% from Rs. 5.11 Cr in Q2FY24 to Rs. 8.86 Cr in Q3FY24.

About CUPID:

Established in 1993, CUPID Limited is India's premier manufacturer of male and female condoms, personal lubricants, and IVD kits. The the company boasts a production capacity of up to 480 million male condoms, 52 million female condoms, 210 million sachets of personal lubricant and 20 million IVD Test Kits annually. In December 2023, the company announced a strategic land acquisition that will enable it to amplify its production capacity by 1.5 times the existing output. As a result, the annual production capacity will be augmented by approximately 770 million male condoms and 75 million female condoms.

This expansion is in addition to the current production capacity. The company has a prominent presence in the international markets and holds the distinction of being the first company in the world to attain WHO/UNFPA pre-qualification for male and female condoms.