Cupid shares fall 20% for 2nd straight session after 550% jump in 2025: Here's what analysts say

Cupid share price

• Cupid shares fell 36 percent in two days after a 550 percent rally in 2025
• Stock placed under ASM Stage 1, requiring 100 percent margin to curb volatility
• Analysts advise caution; consolidation needed before considering new positions

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The shares of Cupid dropped 20 percent for the second consecutive session on January 5, after seeing a sharp rally last year. Analysts have highlighted what lies ahead for the small-cap stock.

The shares of the condom-maker dropped to a one-month low of Rs 337.10 apiece on Monday, before recovering some losses and closing at Rs 389 apiece.. The stock has fallen around 36 percent in just two sessions, after rallying 550 percent in 2025.

The shares have extended losses for the second consecutive session after they were placed under long-term Additional Surveillance Measure (ASM) Stage 1 framework.  The framework involves 100 percent margin requirements on T+3 day to curb volatility in certain stocks.

What does Cupid do?

Cupid manufactures and supplies male and female condoms, water-based lubricant jelly and IVD kits. The company has a current capacity of over 480 million pieces for male condoms, 52 million pieces of the female condoms and 210 million sachets of lubricant jelly per annum.

The company's manufacturing facility is located at Sinnar near Nashik, about 200 km east of Mumbai. It claims to be the first company in the world to obtain pre-qualification status from WHO/UNFPA for supply of both male and female condoms.

What lies ahead?

Cupid has been among the standout performers in the small-cap universe through 2025, with the stock rallying several hundred percent from its 52-week low earlier in the year to hit multiple record highs, said Kalp Jain, Research Analyst at INVasset PMS.

He attributed the recent fall in the share price to profit booking at elevated levels. "Given the steep rise year-to-date and the stock’s volatility, upcoming catalysts such as quarterly performance, execution on the Saudi expansion and broader FMCG traction are likely to influence near-term price action. While the long-term expansion narrative remains intact, intermittent swings may persist around key developments and trading volumes," he said.

Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, advised investors to avoid fresh positions for now and allow the stock to stabilize. "A healthy consolidation between the ₹370–₹400 range would be needed before considering any bullish stance. On the upside, ₹445 remains a strong resistance, while a breakdown below ₹370 may invite further downside," he said.

The extreme volatility of Cupid shares illustrates the volatile nature of market sentiments in high momentum small-caps, said Siddharth Maurya, Founder & Managing Director, Vibhavangal Anukulakara. The recent upside move was based on keen interest in the expansion plans as well as the acceleration in financial results, but corrections are expected in profit-booking, he added.

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