I am referring to ur mail only .I believe in the honesty of this company
They shouldn’t have mentioned a date in my opinion. Mr. Garg already stated that revenue for Q1 & Q2 need to be closely watched.
Any news out on tender results? Cupid 15% up today
I said it when it was 17% down and I’m saying it when it’s 17% up. We gain nothing by discussing the short term price movements. We’re better off discussing the fundamentals, things that change the way the company does business or significant announcements.
Requesting you to kindly mail once again to the Company Sec Mr.Saurabh V Karmase to know the results of S.Africa tender and paste his revert in this forum for the benefit of all the members, pls…
Announcement by Treasury department of South africa about contract will be end of this week or start of next week. It got delayed. This is reply from responsible person from Treasury department who is in contract department
Copy-pasting portions of it below
" Cupid Limited is pleased to announce that it has been awarded the contract worth INR
40.09 Cr from South African Treasury department through its agents situated in South
Africa for supply of Male and Female condoms during the period of 1st year from
October 2018 to September 2019.
Further, this total contract of INR 40.09 Cr is composed of supply of Female Condoms
worth INR 16.29 Cr and Male Condoms worth INR 23.80 Cr.
“We are excited to receive this valuable order”, says Mr. Omprakash Garg, CMD,
Thanks for timely info. could you kindly provide insight on whether is this the expected qty from S.Africa or is it lesser? This would decide the price movements further…
IMHO, this looks a bit disappointing.
What I was expecting was an order for spanning atleast 3 years (similar to the last one in 2015).
Looks like the south african govt is “playing it safe” by restricting the order duration to much shorter durations
Also, the ratio of female/male condoms is more tilted towards male (thus implying lower margins going ahead).
More clarity is required from management on the exact reasons for this.
however, given that the stock is trading around 15 PE (TTM) , the valuations seem fair to me given better revenue visibility atleast for the coming year.
The margins should be lower this year I think, which should cap the upside for this stock .
Disclosure : Already invested around 260 levels, will wait for next six months to decide on future course of action.
Since the much awaited SA tender is out of the way, the next set of triggers I am eagerly awaiting are
: Any order win from other markets like brazil, indian government, other african countries
: Any impact of the reclassification of the female condom to a lower level
: Latest status on the CEO search (it has been ongoing for some time now ) , which is a bit a concern going ahead
: any news on their hand sanitizer product
: Last 2 quarters had declining revenues for their lubcricant segment. They had indicated it should get better going ahead. Waiting to see whether that improves.
: Predictability in revenues should help management focus back on any potential acquisitions( they had mentioned female hygiene domain as a possible target).
I believe this S.African order itself is a trigger for a couple of Upper Circuits.
- Company already has confirmed orders worth 63crs + S.Africa’s 40cr = 103crs confirmed orders.
- Reclassification of the female condom to a lower level means lower risk level, which would make the regulatory norms easier. any ease in regulator norms is a very big positive. Mr.Garg has already stated that reclassification would enable filing with US FDA with ease and enter a very big USA market.
Who has given the order worth 63 crores could not find it on bse ? Is it for this financial year only. Cupid has never crossed 100 cr in sales in the past
@sagar_amula : I think the 60+ crs confirmed order details was mentioned in the last quarter’s conference call by CEO.
@EthicalWealth : I am not sure discussing future price levels is allowed or not .
Anyway, for the PE to get re-rated to beyond 20 levels, the B2C aspect of the business has to pick (along with new product lines).
Lets hope that happens
@sagar_amula, Pls find the screen shot of Investor presentaion 2018, where Mr.Omprakash Garg confirms 63cr orders.
Before Dec 2018…three additional things going to happen which will have positive impact on Cupid
With Re-Classification of Female condom by USFDA, Cupid is able to sell Female Condom in USA…which very high margin market. Price of Female condom in USA is significantly higher than SA
Based on positive comments received in favor of reclassifying of female condoms, more likely outcomes will be positive. View the comments USFDA received https://www.federalregister.gov/documents/2017/12/04/2017-26011/obstetrical-and-gynecological-devices-reclassification-of-single-use-female-condom-to-be-renamed
Two additional tenders from Brazil and India on Male and Female condom
I think now good time again started for Cupid. Looking at strong balance sheet and honest promoter/management…there could be announcement of Bonus shares as this year is Silver Jubilee Year for Cupid…Let’s enjoy up ride!
As I am new to the forum, I also don’t know whether there are restrictions to discuss the future price levels in the forum. If some senior members could clarify the same, it would be fine. Thanks.
I think the restriction is that any technical or price call should be backed by a fundamental analysis of the business, a news related to the business or some sort of Valuation/Financial Analysis.
Comments like “Buy and forget, long term target 1000” are better handled by sites like Moneycontrol. As the forum’s motto says, we’re the wheat, not the chaff.
Yes. Such messages should be flagged. There is the flag option below the messages.
What’s your rationale for 350? Based on today’s announcement?
Female condom carry a higher margin than the male condom, what regulatory risk you referring to?