I would like to share my personal view on the concall held by Cupid on 12-05-2016
Although, I havent participated in many concalls until now, yet I would like to put forth my personal observation :
The chairman, Mr. Garg, was very forth-coming & dignified in his acceptance to the queries put forward to him. His replies had a tone of modesty & honesty. He tried his best to present a transparent picture of the company, without holding back anything.
I was a bit disappointed by the following :
a) Preference ( intentional or unintentional ) to post queries was given by the concall hosting company to the participants belonging to various advisory services, brokerage houses, banks etc., rather than individual investors.
b) The first participant took almost 20-25 minutes with his queries (out of the total 45 minutes allocated for the concall)
c) The queries coming from the participants of institutional investors were very number-centric., rather than business specific.
This gave me a feeling that they didn’t attempt to understand the business model much, but were more focussed on digging the balance sheet & the numbers. Probably they had very recently laid their hands on the annual results & the company’s investor presentation. (like repeated questions on revenues from B2C operations of the company, etc.)
The best questions, which were important to understand the company’s future outlook, came in the last couple of minutes from the individual investors.
This, to some extent, further substantiates my faith in Peter Lynch’s words, where he says “The common investor is better placed than the financial wizards, to make long term gains in the stock market”
I got the Chance to ask the 3rd last question my query was about performance of female vs male condom, design usp of the condom and user experience. Unfortunately due to paucity of time could not ask followup questions.
I have asked followup questions via email to investor relations and will post feedback as received.
As a curious investor i make the effort to understand the business at every available opportunity.
I have seen and interacted with insightful analysts too but it takes all kinds to make the world, and sometimes mediocrity denies the opportunity to have optimal and insightful interaction. Thats life!
BOB Capital Markets Ltd. has just done a review of Cupid’s Q4 results and they have recommended a BUY on the stock with a revised target of 432.
Cupid Limited has reported its results for Q4FY16. It has posted net sales of Rs.177 mn, a growth of ~35.8%/13.6% YoY/QoQ due to increasing sales of female condom and ongoing order from the National Department of Health, South Africa. EBITDA margin have expanded by ~1629/800 bps YoY/QoQ.
I do remember when BOB Capital first came out with a Buy recommendation with a target price of Rs. 327/-, how it was largely ridiculed by the investing fraternity! Well, I do believe that we have a few more believers now!
Well done BOB Capital for being one of the early birds!!
Yah, remember that BoB report very fondly
It was ridiculed for this point mostly and I still have a good laugh about it. It was a very genuine, grounds up overall market potential estimate
The IOC will supply 100,000 female condoms out of a total of 450,000 condoms for Rio Olympics. Another indication of female condoms finding greater acceptability as time goes by.
What are the conditions for circuit revision on BSE? I think Cupid is classified in XC group right now. Are there some rules which BSE will review the classification?
I doubt it. 2 days LC of 2% is hardly anything in the bigger scheme of things. There is bound to be whipsaw kind of movements within this range given the tight 2% window. Blame it on BSE for still keeping the filters intact. Once the NSE listing happens all this is incosequential.
More than rubber prices, what is more important is new SUBSTANTIAL orders for Cupid. Their order book has to scale up significantly before the market starts to take it more seriously. A 10 crore order now and then doesn’t help much except for some excitement amongst small traders in MMB boards
You are right. These kind of investor meets are based on request from Investor themselves.
It’s not the kind where company conducts it from it’s own side and anyone can join, like the conf. call.
Earlier these meetings went unreported, but thanks to SEBI guidelines, now companies report it to exchange.
