750% multibagger returns: Stock under Rs 100 hit upper circuit on January 05

On Wednesday, shares of Elitecon International Ltd (EIL) hit a 5 per cent Upper Circuit to an Intraday high of Rs 96 per share from its previous closing of Rs 91.43 per share. The stock’s 52-week high is Rs 422.65 per share and its 52-week low is Rs 11.21 per share.

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.

India’s tobacco and FMCG space has split into two clear stories that replaces GST compensation cess with an additional excise duty from February 1, 2026 (Rs 2,050–Rs 8,500 per 1,000 sticks, based on length). Domestic-heavy players now face a margin-vs-volume trade-off: either raise prices and risk demand, or absorb costs and take a hit on profitability.

Elitecon International Ltd however, has outmanoeuvred this shock by going export-first. Since tobacco exports are zero-rated under GST, its international sales across 50+ countries help keep margins steadier while domestic peers wrestle with the new duty. The company won deal of USD 97.35 million (Rs 875 crore) two-year contract with Yuvi International Trade FZE. Alongside this, Elitecon is widening its FMCG footprint via acquisitions in agro/FMCG, and is seeking shareholder approval to raise investment/loan limits to Rs 750 crore and borrowing powers to Rs 500 crore to fund scalable growth.

The company has a market cap of over Rs 15,000 crore. The stock has given multibagger returns of 756 per cent from its 52-week low of Rs 11.21 per share and a whopping 9,400 per cent in 3 years.

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