This High-ROE Multibagger Stock Under Rs 70 Outperformed Godfrey Phillips India by 24x Returns Over 3 Years

Elitecon International Ltd (EIL) has captured the market's attention by delivering an extraordinary 6,350 per cent return over the past three years. This performance significantly outpaces industry stalwarts like Godfrey Phillips India, which saw a 260 per cent return in the same period, representing a 24-fold outperformance by EIL. Currently trading at an Intraday high of approximately Rs 68, the stock maintains a high Return on Equity (ROE) of 44 per cent, signalling strong capital efficiency. While the stock has seen a massive rally from its 52-week low of Rs 16.59, it remains well below its 52-week high of Rs 422.65, highlighting the significant volatility inherent in its recent price action.

The company's financial trajectory shows a massive scale-up in operations, with Q2FY26 net sales surging by 318 per cent to Rs 2,192.09 crore compared to the previous quarter. This growth is mirrored in the bottom line, where net profits rose 63 per cent to Rs 117.20 crore. On a half-yearly basis, the numbers are even more striking, with net sales growing by 581 per cent compared to the same period last year. With a market capitalisation now exceeding Rs 10,000 crore, EIL has transitioned from a smaller entity into a significant player in the tobacco and allied products manufacturing and trading space.

Strategically, Elitecon is positioning itself for long-term global expansion. Established in 1987, the company already operates across the UAE, Singapore, Hong Kong, and Europe, managing a brand portfolio that includes "Inhale" cigarettes and "Al Noor" sheesha. To support this growth, the board has secured approval to increase borrowing limits to Rs 500 crore and has granted expanded authority for strategic investments. Furthermore, the company is in the process of merging with Sunbridge Agro, Landsmill Agro, and Golden Cryo Private Limited—a move guided by Deloitte as the primary advisor to streamline resources.

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