Cupid Ltd – Helping the world play safe!

Record Date is Thursday, 4th Day of April,2024 Purpose is Sub division of Equity Share Ratio is 10 to 1 i.e. Sub-division of One Equity Share of the face value of Rs 10 each fully paid-up into Ten Equity Shares of the face value of Re. 1 each fully paid up. Bonus lssue 1 to 1 ratio i.e. One Bonus Equity Share of the face value of Re. 1 each fully paid up for every One existing Equity Share of Face Value of Re, 1 each fully paid up.
Source:BSEINDIA

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Cupid Limited withdraws its decision to invest in TFCIL via Preferential Allotment.

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Interesting! It is likely that Cupid’s warrant allottees pressurized the management to withdraw from this. Aditya Halwasiya is only 29 and allowed to make mistakes! Better to admit them and make a course correction than to persist for the sake of ego. But note that Cupid’s press release quotes Kuldeep Halwasiya, which is odd. Until now, Aditya has been the public face of the company - talking to the media, answering concalls etc. Now Mr. Kuldeep has stepped in to reverse his decision. I wonder if we should read more into this.

TFCI EGM to pass the resolution for preferential allotment took place just on Friday. Not sure if this is a coincidence or if Cupid’s decision to withdraw was made earlier but kept under wraps till TFCI concluded its EGM. Cupid was hitting lower circuit almost continuously since 11th March but reversed course on 20th and closed at upper circuit on Thursday and Friday (21st & 22nd).

(Disc.: No positions)

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  • Quarterly results are being announced very early (positive signal)
  • They have done right thing in backing off from planned investment in TFCI
  • Stock split and bonus will increase liquidity

key observations — cupid q4fy24 quarterly numbers —

— cupid demonstrated robust growth across all segments, underpinned by innovative strategies and operational excellence

— co extending its global footprint tapping new geographies both internationally and within India

— a recent addition to its growth strategy entailing new product lines i.e. ivd kits & deodorants are enhancing b2c presence through a comprehensive, multi-pronged strategies

— expansion further supported by strategic partnerships with marketing and distribution allies worldwide, streamlining reach and engagement with diverse markets

— inventory management & procurement processes with suppliers have been refined yielding significant cost savings & enhanced efficiency

— net debt free company and have a war-chest of cash and cash equivalents ₹174 crores

— the acquisition of land for a new plant marks the beginning of a new episode

— a full fledged construction to kickstart this quarter is anticipated to start production in the new facility within the next ~16 months

— working capital bit stretched but that’s fine given the expansion

Did the promoter foresee all this and sold out the company at 1 /10 th the valuations. Anyone who has a better explanation

Exactly, what i find very weird is how the company can post such great numbers in a matter of a couple of quarters after new management takeover? The previous management has been with the company for a long time and how could they not forsee this growth?

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While I am uncertain about how the new management achieved significant progress within a brief timeframe—an area that warrants further investigation—I believe it is inappropriate to involve the previous management in this discussion. The former Managing Director, OmPrakash Garg, and his team had been considering transitioning leadership to a younger team for quite some time (if memory serves, over four years) due to his advancing age. It is conceivable that, given his life stage, his primary focus would have been on maintaining business continuity until the transition could occur seamlessly. I would not anticipate him dedicating time and resources to new initiatives aimed at future growth, especially considering that the incoming team would likely prefer a clean slate and may not wish to inherit partially completed projects. While opportunities may have existed for the previous team to pursue, their priorities may have led them to forego such endeavors. These are my observations on the matter, recognizing that my perspective may not be definitive. Therefore, I encourage conducting thorough research and analysis before forming conclusions.
Disc - Invested in Cupid

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Hi I’m just covering the behavioral aspect of investing ( like how some ipos get Mispriced). I know Om Garg was looking for suitors as his next generation was unwilling to take over. My question is why he sold something that he built from scratch and which took him a lifetime to build for 1/10 of the valuation .Im not even talking about the current quarter results( i haven’t gone to details but its not some improbable results). The stock rallied almost 6-7 times even before. My question is did he get shortchanged. I would be furious with myself if i had sold something that’s valuable for peanuts.

Another example I can provide is how Dr. Velumani sold thyrocare at peak valuations since his children are not interested to take over.