Cupid Limited

Consumer Defensive — Household & Personal Products · NSE

₹354.00+₹1.50 (+0.43%)

DalalBaazaar Score

74 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Strong business and financial position, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:27 pm

Understanding the Business

Company site ↗

The 60-second version of Cupid Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Cupid Limited manufactures and supplies male and female condoms in India and internationally.

IndustryHousehold & Personal Products

SectorConsumer Defensive

Employees196

Annual revenue₹351 Cr

How does it make money?

Turns over ₹351 Cr a year. Of every ₹100 of sales, about ₹31 reaches shareholders as profit, with ₹40 left at the operating level before interest, tax and depreciation. Each of its 196 employees supports ₹1.79 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.79 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., DABUR INDIA LTD, ITC LTD, BRITANNIA INDUSTRIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 30.8%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 24.0% against a peer median of 27.4% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE27.4%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +126% while net margin moved +52% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+126%

Margin effect+52%

DalalBaazaar Score

74/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 354.0x is demanding — it needs sustained high growth to justify
✗ P/E is 269% above its own historical median of 95.9x — expensive by its own standards
✗ P/B of 105.45x is a steep premium to book

Quality vs. Valuation

Company Quality

88/ 100

Excellent

How good the business is, ignoring the share price entirely.

Valuation

23/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

354.0x

3Y Median

95.9x

40 monthly readings · mean 182.9x · range 16.2x–795.2x

Sector Median

38.6x

median of 4 sector peers

⚠️Current valuation is approximately 269% above its 3y median of 95.9x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 818% above the peer median of 38.6x.

vs. its own history

Expensive

95.9x median over 40 months · +269%

vs. sector peers

Expensive

38.6x median of 4 peers · +818%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

334.6x

PEG

6.97

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 29.1% to 40.4% over 3 years.
Return on equity is rising
ROE has improved from 18.9% to 24.0%.
Return on capital is rising
ROCE has improved from 25.3% to 30.8%.
High return on capital employed
ROCE of 30.8% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.13x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 3 high

🔴Debt has risen sharplyFinancial
Total debt is up 844% over 3 years, from ₹6 Cr to ₹56 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 293% against revenue up 126% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 267% against revenue up 126% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 30.8% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 29.1% to 40.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹21 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 293% against revenue up 126%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 269% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 23% a year✓ 31.2% CAGR
Latest reported year was 158.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 38%✓ 40.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹21 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 28%✓ 30.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✗ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 2 neutral · 2 weak

Market Cap

₹47,601 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

354.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

105.45x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹1

Profitable

Profitable on a per-share basis

ROE

24.0%

Strong

Strong capital efficiency

ROCE

30.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.13x

Low

Conservative leverage

Revenue Growth (YoY)

158.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

190.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹21 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

38.0%

Good

Healthy core-business profitability

Net Margin

30.4%

Good

Strong bottom-line conversion

Current Ratio

4.67

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.28

Defensive

Steadier than the market

52W Range Position

95%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

311.9 / 292.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

82.3

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹156 Cr	₹168 Cr	₹181 Cr	₹351 Cr	+31.2%
EBITDA	₹45 Cr	₹55 Cr	₹59 Cr	₹142 Cr	+46.3%
EBITDA Margin	29.1%	32.6%	32.5%	40.4%	—
PAT (Net Profit)	₹32 Cr	₹40 Cr	₹41 Cr	₹108 Cr	+50.8%
EPS	₹0.23	₹0.3	₹0.29	₹0.79	+51.8%
ROE	18.9%	13.2%	11.9%	24.0%	—
ROCE	25.3%	17.6%	16.2%	30.8%	—
Total Debt	₹6 Cr	₹12 Cr	₹19 Cr	₹56 Cr	+111.3%
Free Cash Flow	₹30 Cr	-₹17 Cr	-₹31 Cr	₹21 Cr	-10.8%

🟢 Revenue has grown at 31.2% a year over 3 years.

🟢 EBITDA has grown at 46.3% a year over 3 years.

🟢 EBITDA Margin has risen from 29.1% to 40.4% over 3 years (+11.3 pts).

🟢 PAT (Net Profit) has grown at 50.8% a year over 3 years.

🟢 EPS has grown at 51.8% a year over 3 years.

🟢 ROE has risen from 18.9% to 24.0% over 3 years (+5.1 pts).

🟢 ROCE has risen from 25.3% to 30.8% over 3 years (+5.5 pts).

🔴 Total Debt has grown at 111.3% a year over 3 years.

🔴 Free Cash Flow has shrunk at 10.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹553 Cr

Total Liabilities

₹102 Cr

Cash & Equivalents

₹169 Cr

Operating Cash Flow

₹46 Cr

Capex

-₹25 Cr

Shareholding (proxy)

Institutional Holding

0.8%

Insider Holding

64.4%

Corporate Actions

Ex-Dividend Date

18 Sept 2023

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
DABUR INDIA LTD	34.7x	17.2%
ITC LTD	16.6x	27.4%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

1 mixed5 general

4:1 Bonus Allotment: How Your 1 Cupid Stock Became 80 Shares In 2 Years; Buy Condom Maker Shares?

Goodreturns, 16 Oct

Cupid Share Price News: 3.37% Fall and Valuation View

Univest, 13 Oct

Why Cupid Share Price is Rising

Equitymaster, 07 Oct

Cupid shares surge 17% in 2 days to record high; what's behind sharp rise?

Business Standard, 30 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Cupid Limited appoints Bontha Prasada Rao as Independent Director

scanx.trade, 18 Oct

Up 15,400% in 5 years, multibagger stock Cupid hits record high - What's fuelling the rally? Check outlook, stop loss

Livemint, 09 Oct

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingRisk

WeakValuation

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 3 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑