Cupid Limited shares staged a remarkable recovery on Tuesday, surging 11% to touch an intraday high of ₹433.00 after witnessing a steep correction over the past two trading sessions. The sharp rebound comes after the stock had declined nearly 25% cumulatively, reflecting renewed buying interest and short covering following the recent sell-off.

Company Issues Clarification on Price Volatility

Following a nearly 20% plunge on January 2, Cupid Limited promptly issued a clarification to stock exchanges addressing the unusual market movement. The company stated it was not aware of any undisclosed material event or development that could justify the significant fluctuation in its share price or trading volumes.

The company emphasized that operations continue normally, with management fully focused on executing its stated strategy. It also cautioned investors to rely only on information released through official stock exchange filings and authorized communications.

Management Addresses Market Rumours

Cupid Limited noted it had become aware of false and unverified rumours circulating in the market, seemingly aimed at creating panic and damaging the reputation of the company and its promoters. The company stated it is reviewing the matter and will take appropriate action if required. Management reiterated that the promoters remain committed to long-term value creation and protecting stakeholder interests.

Notably, the recent correction came after a strong rally in the stock. Cupid shares had gained 34% over 15 consecutive trading sessions up to January 1, indicating significant investor enthusiasm prior to the volatility.

Strong Business Performance Supports Recovery

Supporting the recent rebound, Cupid Limited's Q3 FY26 business update reflected healthy operating momentum and improving demand visibility. The company reported that its order book has reached an all-time high, providing strong revenue visibility for the coming quarters.

The company continues to make steady progress on its capacity expansion plans while maintaining strong traction across global markets, reinforcing its positive growth outlook.

Confident FY26 Outlook

Management reiterated its confidence in surpassing its earlier FY26 guidance, demonstrating strong conviction in the company's operational capabilities. This optimism is underpinned by operational efficiencies, stable demand conditions, and consistent execution.

These factors collectively position the company well for sustained performance in the remainder of the financial year, supporting investor confidence despite the recent market volatility.

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.