Cupid Ltd shares experienced a sharp decline on Monday, falling over 19% following a significant block deal in the pre-market trading session. The stock hit its lowest level in over a month, reflecting continued pressure on the company's market valuation.

Block Deal Impact

According to market data, a substantial block trade involving 2.13 million shares took place during the pre-market session. The identities of the buyers and sellers in this transaction remain undisclosed. The large volume of shares changing hands contributed to the significant price movement observed in the stock.

Recent Business Developments

Despite the stock's poor performance, Cupid has been actively pursuing expansion initiatives. The company recently approved plans to establish a fast-moving consumer goods facility in Saudi Arabia, marking its first manufacturing plant outside India. This strategic move aims to support the company's FMCG growth strategy and strengthen its presence in overseas markets, particularly in the Gulf Cooperation Council region.

Founded in 1993, Cupid operates as India's leading manufacturer of contraceptives, personal lubricants, IVD kits, and various FMCG products including deodorants, perfumes, and personal care items. The company has been expanding its product portfolio beyond its traditional contraceptive business into broader FMCG categories.

Expansion and Capacity Enhancement

As part of its growth strategy, Cupid has diversified into multiple FMCG segments including fragrance products, personal care items, and wellness solutions. In March 2024, the company completed a strategic land acquisition in Palava, Maharashtra, which will enable it to increase production capacity by 1.5 times its current output.

Stock Performance Analysis

The stock's performance on Monday reflected the broader challenges facing the company. Cupid shares fell as much as 19.73% to ₹337.10, representing the lowest level since December 1. By mid-morning, the stock was trading 16.93% lower at ₹348.85, while the NSE Nifty 50 Index posted a marginal 0.05% advance.

The stock has experienced significant volatility over the past year, declining 337.76% in the last 12 months. Trading activity was notably high, with total traded volume reaching 18 times the 30-day average. The relative strength index stood at 36, indicating oversold conditions.

Cupid Ltd. and Tourism Finance Corporation of India Ltd. (TFCI) witnessed contrasting movements on Monday, January 6, after both stocks had slumped to their 20% lower circuit on Friday. While Cupid shares continued their downward spiral, TFCI staged a remarkable recovery with strong buying interest.

Monday's Market Performance

The two stocks, connected through common stakeholder Aditya Halwasiya, showed dramatically different trajectories:

Common Shareholding Connection

Both companies share a notable connection through Aditya Halwasiya, who plays different roles in each organization:

Ekta Halwasiya's acquisition of 3.70 lakh shares of Tourism Finance through block deals on Friday helped revive investor sentiment in the stock, contributing to Monday's recovery.

Cupid's Strong Q3 FY26 Performance

Despite the stock's poor performance, Cupid reported robust operational metrics for the third quarter:

The company's capacity expansion at its Palava, Maharashtra facility remains on track, while its FMCG sector foray gains momentum with personal care products receiving positive consumer feedback.

Company's Response to Market Volatility

Cupid issued a comprehensive clarification over the weekend addressing the stock price movement:

• No Material Events: Management confirmed no awareness of any material event warranting such volatility
• Normal Operations: Company continues operating normally while executing its stated strategy
• False Rumors: Identified circulation of false and unverified rumors intended to create panic
• Legal Action: Reviewing the situation and will take necessary steps if required

Tourism Finance's Investment Initiatives

TFCI announced its role as co-sponsor and anchor investor for two Alternative Investment Funds:

Both funds represent TFCI's strategic expansion into alternative investment vehicles, providing fundamental support for the stock's recovery.