Cupid seems to have had a phenomenal run last couple of years fwhen sales almost doubled from 85 Cr to 161 Cr and it has held up in the Corona pandemic times. Key will be to understand why the sales increased and if it is sustainable.
Sales CAGR is >20%, RoCE has been 20% plus for the last 6 years. The RoCE is mostly driven by the high Net Profit Margin %. Company has generated FCF in every year, is debt-free. Earnings yield is more than 8%
There seems to have something big turnaround since 2015 and something magical since 2019. Prior to 2015, the company had almost no profits (or profit margin), the 10 year CFO is just 51% of Profits, meaning something happened to that money. Receivables days are very high at 90+ days
While the company looks good for investment, I would like to go through the annual reports (or hear from others here), as to if the sales growth of 2019 is sustainable and what fundamentally changed in 2014 and 2019