CUPID is under performing index during 2017
YTD cupid is down 14%
YTD small cap index is up 40% +
Contrary, Cupid’s YTD Revenue and PAT are up 20%
I have Cupid as 2% of portfolio since first purchased and not increased / decreased since then.
75% of FY17 revenue was from export
I am not able to figure out any sign of revenue / PAT not growing more than 20% in FY18 with guidance in place.
There is plan of B2C in Q3FY17, however that is over and above exisiting operations, as well expense outgo on B2C planned as 2.5 Cr a year (3 yr plan)
This seems to be a concern of investors who are wondering how dare Cupid think of entering in competition of Reckitt Benckiser (durex) , Alkem (playgard) , JK helen (KamSutra), Mankind. All of them have very strong distribution channel and brand power.
Mankind boast of 3 current brand ambassadors from bolleywood and also getting big B
I see B2C adding delta up in revenue FY19 if successful with cost of sales capped at 2.5Cr a year, is not giving significant dent to NPM%
I see company stock available at less expensive quote compared to broader market, and wish to add more in my portfolio.
Thanks to hear comments , the opposite view that it is not the right stock.