Mid-cap stock surges after taking significant strategic step towards strengthening its long-term growth trajectory and operational scale

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Mid-cap stock surges after taking significant strategic step towards strengthening its long-term growth trajectory and operational scale

The stock has given multibagger returns of 774 per cent from its 52-week low of Rs 11.43 per share and a whopping 9,750 per cent in 3 years.

On Thursday, shares of Elitecon International Ltd (EIL) surged 4.20 per cent to Rs 99.89 per share from its previous closing of Rs 95.86 per share. The stock’s 52-week high is Rs 422.65 per share and its 52-week low is Rs 11.43 per share.

Elitecon International Limited (EIL) has announced a significant strategic move to enhance its operational scale and shareholder value by initiating a merger process with three entities: Sunbridge Agro Private Limited, Landsmill Agro Private Limited and Golden Cryo Private Limited. To ensure high governance standards and transparent execution, the company has appointed Deloitte Touche Tohmatsu India LLP as its strategic Tax and regulatory advisor and transaction program manager. This collaboration is intended to guide the company through the complex evaluation, structuring and implementation phases of the proposed merger.

The consolidation of these synergistic business verticals is expected to be a transformational milestone, providing EIL with a stronger balance sheet and improved market positioning. By integrating these companies, Elitecon aims to achieve greater operational efficiencies, optimised resource utilisation and long-term earnings visibility. While the board is actively evaluating the scheme, the final implementation remains subject to necessary approvals from statutory bodies, regulators and the National Company Law Tribunal (NCLT).

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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 15,000 crore. The stock has given multibagger returns of 774 per cent from its 52-week low of Rs 11.43 per share and a whopping 9,750 per cent in 3 years.

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