The small-cap segment has been a painful place for retail investors in 2025, with most stocks witnessing sharp losses and slipping to multi-month lows. However, one company has defied this trend and rewarded its shareholders with a stunning 600% gain in just nine months. Meet Cupid, the leading manufacturer of male and female condoms in India, which has seen its shares skyrocket despite the broader market volatility.
What's Behind Cupid's Success?
Cupid's shares made a stellar rebound in April with a 25% surge, and the momentum has only strengthened since then. The stock has closed each subsequent month higher, resulting in a massive gain of 600%. This rally has contributed to an impressive 890% gain in two years, 3,600% in three years, and a sharp 3,700% over the last five years, making Cupid one of the biggest wealth creators in the Indian stock market.
Key Factors Driving the Rally
So, what's behind Cupid's success? Three key factors have driven the rise in demand for its shares: steady growth in net profit, ongoing capacity expansion, and a strong track record of achieving its guidance. Investors are confident that the company's fundamentals can sustain the momentum seen in recent quarters.
- Steady Growth in Net Profit: Cupid has reported a 103% rise in operating income and a 176% year-on-year rise in EBITDA.
- Ongoing Capacity Expansion: The company's capacity expansion is set to increase its capacity by 2.5x and enable it to scale operations post commissioning of the new plant in FY27.
- Strong Track Record: Cupid has a strong track record of achieving its guidance, with a 140% YoY improvement in net profit in the September quarter.
Looking Ahead
The company remains on course to achieve its FY26 topline guidance of ₹335 crore, with an upward bias, given the positive developments across segments. It also aims to grow its net profit to over ₹100 crore for the year. With its strong fundamentals and growth prospects, Cupid is an interesting story to watch in the Indian stock market.
Remember, this is just a perspective, not a prediction. It's essential to do your own research and consult with certified experts before making any investment decisions.