Cupid shares surge 30% in six sessions, hit fresh 52-week high; Here is why stock is rallying

Shares of Cupid, the country's leading condom maker, have surged as much 30% in the last six trading sessions to hit a fresh 52-week high of ₹344.75 on the National Stock Exchange (NSE) on Wednesday, October 7.

In intraday deals, Cupid shares advanced as much as 6.33% and in the last six sessions the stock has only closed lower on one day.

The stock came under buying interest after the company indicated at strong business momentum in the second quarter of current financial year. The company expects revenue to cross ₹200 crore in July-September period.

"Driven by sustained momentum across its key business verticals and improved visibility across domestic and international markets, the management has revised its FY27 revenue guidance to ₹800 crore and net profit guidance to ₹250 crore plus," the Nashik-based company said.

Q2 operational highlights

In the second quarter of current financial year, Cupid approved conversion of up to 30 lakh warrants of Baazar Style Retail Limited into an equivalent number of equity shares at ₹328.25 per share.

The company received an in-principal approval for a manufacturing venture in South Africa, with the proposed facility aimed at supporting local manufacturing and creating a platform for expansion across Africa and international markets.

The South African manufacturing initiative will adopt an asset-light model, combining Cupid’s manufacturing expertise with local partner support to create a platform for institutional procurement and wider African market expansion, Cupid said.

During the quarter, company strengthened its strategic healthcare partnership with GII Healthcare Investment Limited through an additional $5 million follow-on investment.

Cupid added that it continues to strengthen its healthcare and personal care platform, with an expanding FMCG portfolio and manufacturing capabilities supporting both international B2B healthcare and domestic consumer businesses.

Going ahead Cupid is looking to scale domestic FMCG distribution to deepen its presence across modern trade, general trade and pharmacy channels, the company said.

The Nashik-based company will operationalise the Palava manufacturing facility to enhance production capacity, flexibility and supply capabilities across domestic and international markets.

As of 11:2 am, Cupid shares traded 6.3% higher at ₹344.65, outperforming the NIFTY Smallcap 100 index which was up 0.6%. The stock was among top gainers in the index.