MoneyWorks4Me

Check Before You Invest : Cupid Ltd

BSE: 530843 NSE: CUPID ISIN: INE509F01029
  |   Sector:  FMCG   |   Industry:  Household & Personal Products

Snapshot

Q.1 Which industry/sub-sector does Cupid Ltd belong to?
Cupid Ltd belongs to the FMCG sector, operating specifically within the Household & Personal Products segment.
Q.2 Is Cupid Ltd a good quality company?
Cupid Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Cupid Ltd undervalued or overvalued?
Cupid Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 3-year
Historic Median
Price to Earnings 259.44 68.93
Price to Book 72.07 11.60
Price to Sales 78.75 15.48
EV to EBITDA 185.59 46.03
Q.4 Is Cupid Ltd a good buy now?
Cupid Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

Q.1 Gross Profit margin of Cupid Ltd?
Cupid Ltd Gross profit margin which is the profit after deduction of direct costs, is 41.2% for FY-2026, which is above its 3-year median of 32.3%, indicating increasing margins.

Q.2 Operating Profit Margin of Cupid Ltd?
Cupid Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 32.69% for FY-2026, which is above its 3-year median of 29.54% indicating increasing margins.

Q.3 Net Profit Margin of Cupid Ltd?
Cupid Ltd Net Profit Margin is 30.26% for FY-2026, is above its 3-year median of 23.21%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 41.2 32.3
Operating Profit Margin (%) 32.69 29.54
Net Profit Margin (%) 30.26 23.21

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Cupid Ltd?
Cupid Ltd Return on Asset is 23.4%, which is above its 3-year historical median of 12.46%, indicating improved asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Cupid Ltd?
Cupid Ltd Return on capital employed is 33.93% for FY-2026, which is above its 3-year historical median of 17.36%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.6 Return on Equity (ROE) of Cupid Ltd?
Cupid Ltd Return on equity is 31.18% for FY-2026, which is above its 3-year historical median of 19.51%, indicating the business is making better use of its shareholders capital.

C: How much debt does the business have and is it at a sustainable level?

Q.7 Debt to Equity ratio of Cupid Ltd?
Cupid Ltd Debt-to-Equity ratio is 0.11, which is above the industry average of 0.10, indicating higher debt levels in the industry.

Q.8 Debt to cash flow from operations of Cupid Ltd?
Cupid Ltd Debt to cash flow from operations is 1.11, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Cupid Ltd?

Q.1 Promoter shareholding and pledge status of Cupid Ltd?
Promoters hold 46.24% of the Cupid Ltd, with 8.03% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Cupid Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Cupid Ltd vs industry peers?
Cupid Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 0%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) - -
Gross Profit Growth (%) 149.2 26
Operating Profit Growth (%) 173.8 23.3
Net Profit Growth (%) 163.4 30.4
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 0.77 1.15
ROE (%) 31.18 14
ROCE (%) 33.93 16.95
Cash Conversion Cycle (days) 118.58 56

Valuation & price assessment

Q.1 Stock return of Cupid Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 58% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
58% 157.4% 302.5% 499.4%
Q.2 Valuation ratios of Cupid Ltd vs historical?
The current P/E ratio of 259.44 is higher than its historical median of 68.93, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 259.44 68.93 48.99
Price to Book 72.07 11.60 3.87
Price to Sales 78.75 15.48 5.18
EV to EBITDA 185.59 46.03 31.76

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