Strategic Capital: Elitecon International Expands Investment and Loan Limits

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Strategic Capital: Elitecon International Expands Investment and Loan Limits

The stock has given multibagger returns of 342 per cent from its 52-week low of Rs 14.75 per share and a whopping 5,800 per cent in 3 years.

Elitecon International Ltd (EIL) has secured shareholder approval for a significant expansion of its financial capabilities, authorising a substantial increase in borrowing limits up to Rs 500 crore under Section 180(1)(c) of the Companies Act, 2013. Complementing this move, the company also passed a resolution under Section 186, granting the board flexibility to make investments, extend loans, and provide guarantees or security beyond the standard statutory limits. Crucially, these strategic shifts—aimed at fueling future growth and operational agility—were passed as special resolutions with no reported interest from the promoter or promoter group in the specific agenda items, ensuring a clear path for independent corporate action.

The company is also embarking on a transformational expansion by initiating a merger with Sunbridge Agro, Landsmill Agro and Golden Cryo Private Limited. To navigate the complex regulatory landscape and ensure transparent execution, the company has engaged Deloitte Touche Tohmatsu India LLP as its strategic Tax and transaction advisor. This consolidation of synergistic business verticals is designed to strengthen EIL’s balance sheet, optimise resource utilisation and enhance long-term earnings visibility. While the board is actively moving forward with the plan, the final merger remains subject to formal approval from the National Company Law Tribunal (NCLT) and other statutory regulators.

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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 such as the UK and plans to expand its offerings to include products like 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 Quarterly Results, the net sales increased by 318 per cent to Rs 2,192.09 crore and the net profit increased by 63 per cent to Rs 117.20 crore in Q2FY26 compared to Q1FY26. According to half-yearly results, the net sales increased by 581 per cent to Rs 3,735.64 crore and the net profit increased by 195 per cent to Rs 117.20 crore in H1FY26 compared to H1FY25. 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 over Rs 9,900 crore. The stock has given multibagger returns of 342 per cent from its 52-week low of Rs 14.75 per share and a whopping 5,800 per cent in 3 years.

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