4:1 Bonus Issue: Multibagger Small-Cap Stock Jumped by 15%, Trading Volume Surges 35 Times 2 weeks Average volume

Shares of Cupid Ltd moved higher during Monday’s trading session, with the stock jumps nearly 13 per cent to touch an Intraday high of Rs 92.90 on the NSE. On the BSE, the stock jumped as much as 15 per cent during the day. The buying interest in the stock followed the company’s shares beginning to trade ex-bonus on the stock exchanges, which supported the move in the share price.

Ex-Bonus Trading Drives Buying Interest

The rise in Cupid Ltd shares during the session comes after the stock began trading ex-bonus following the company’s 4:1 bonus share issue. On the ex-bonus date, the share price gets adjusted to reflect the increased number of shares issued to existing shareholders.

Such adjustments often attract trading activity as the per-share price becomes lower after the bonus adjustment, which can increase liquidity and investor participation. During the session, buying interest in the stock pushed Cupid Ltd shares higher by around 15 per cent on the BSE, making it one of the notable movers in the market.

Stock Records Higher Trading Volumes

Shares of Cupid Ltd also witnessed a significant rise in trading activity during the session. The trading volume on the counter surged to around 4.97 crore shares on the NSE, which was about 34.57x times higher than the 2 weeks average trading volume of 43.64 lakh shares as per BSE.

The increase in volumes came as the stock started trading ex-bonus, which often leads to higher participation from traders and investors. Higher trading activity can also occur when the share price adjusts after a corporate action such as a bonus issue.

What Does Ex-Bonus Mean for Investors

When a company announces a bonus issue, it gives additional shares to existing shareholders without any extra cost. In Cupid Ltd’s case, the company announced a 4:1 bonus issue, which means shareholders receive four additional shares for every one share they hold.

Once the stock begins trading ex-bonus, the share price adjusts to reflect the increased number of shares in the market. This adjustment can make the stock appear cheaper on a per-share basis, even though the overall value of an investor’s holding generally remains similar because they receive additional shares.

Strong Q3 Results 

Cupid Ltd reported revenue from operations of around Rs 93.51 crore in Q3 FY26, compared with Rs 46.35 crore in Q3 FY25, showing a 101.7 per cent increase year-on-year. The company’s total income was about Rs 104.40 crore, compared with Rs 50.76 crore in the same quarter last year.

Net profit after Tax for the quarter was around Rs 32.87 crore, compared with Rs 11.08 crore in Q3 FY25, representing a 196.6 per cent year-on-year increase. The company’s basic and diluted earnings per share (EPS) were Rs 1.22, compared with Rs 0.41 in the corresponding quarter of the previous year.

Cupid Ltd has a market capitalisation of around Rs 12,331 crore. The company is almost debt free. In terms of financial metrics, it reports a return on capital employed (ROCE) of about 17.1 per cent and a return on equity (ROE) of around 12.9 per cent.

Disclaimer: The article is for informational purposes only and not investment advice.