From Rs 1.10 to Rs 108.04 per share: Hit consecutive 13 upper circuits; An investment of Rs 1,00,000 turns Rs 98,21,808 in just 11 months!

On Tuesday, shares of Elitecon International Ltd hit a 5 per cent upper circuit to Rs 108.04 per share from its previous closing of Rs 102.90 per share. The stock also made a 52-week high of Rs 108.04 per share and its 52-week low is Rs 1.10 per share. The company is locked in the upper circuit for the 13^th consecutive day.

Elitecon International Limited has announced significant strategic decisions made by its Board of Directors. The company plans to acquire Prime Place Spices Trading L.L.C., a Dubai-based entity specialising in spices, nuts, coffee, tea and confectionery, for approximately Rs 700 crore. This acquisition, which will give Elitecon 100 per cent shareholding, aims to expand Elitecon's Fast-Moving Consumer Goods (FMCG) presence into international markets, complementing its existing domestic agro-commodities business. Prime Place Spices Trading L.L.C., incorporated in 2007, has shown consistent growth, with a turnover of AED 160.15 million as of December 31, 2024. The acquisition is expected to be completed within six months, subject to necessary regulatory approvals in the UAE.

To finance these initiatives, Elitecon International Limited intends to raise capital through two methods. Firstly, it proposes to issue Equity Shares via a Qualified Institutions Placement (QIP), aiming to raise up to Rs 300 crore. Secondly, the company plans a Preferential Issue of Equity Shares for consideration other than cash, specifically through a swap of shares, amounting to approximately Rs 400 crore. Both capital-raising efforts are subject to the approval of the company's members and relevant governmental and regulatory authorities. An Extra-ordinary General Meeting (EGM) is scheduled for August 6, 2025, with a book closure period from July 31 to August 6, 2025, and remote e-voting available from August 3 to August 5, 2025.

Additionally, on Wednesday, June 25, 2025, Elitecon International Limited's shares have ex-traded a 1:10 stock split. This means each equity share with a face value of Rs 10 has been subdivided into ten equity shares, each now having a face value of Re 1.

About the Company

Established in 1987, Elitecon International Ltd. (EIL) specialises in the manufacturing and trading of a diverse range of tobacco and allied products for both domestic and international markets. The company's product portfolio includes smoking mixtures, cigarettes, pouch khaini, zarda, flavoured molesis tobacco, yummy filter khaini, and other tobacco-based items. EIL has a notable international presence, operating in the UAE, Singapore, Hong Kong, and European countries like the UK, and plans to expand its offerings to include products such as chewing tobacco, snuff grinders, and match-related articles. The company also boasts its brands, including "Inhale" for cigarettes, "Al Noor" for sheesha, and "Gurh Gurh" for smoking mixtures.

According to consolidated Quarterly Results, the net sales increased by 232 per cent to Rs 313.16 crore and the net profit increased by 222 per cent to Rs 42.97 crore in Q4FY25 compared to Q4FY24. In its standalone annual results, the net sales increased by 424 per cent to Rs 297.51 crore and the net profit increased by 574 per cent to Rs 32.21 crore in FY25 compared to FY24. For the consolidated annual results (FY25), the company reported net sales of Rs 548.76 crore and net profit of Rs 69.65 crore.

The company has a market cap of Rs 17,270.19 crore. The stock has given multibagger returns of 9,722 per cent from its 52-week low of Rs 1.10 per share. An investment of Rs 1,00,000 turns Rs 98,21,808 in just 11 months.

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