Tobacco stock jumps 5% after securing export order worth ₹875 Cr from International entity 

Synopsis: Elitecon International has informed stock exchanges that it received a 2-year international export order for the supply of tobacco-related products, strengthening its presence in the Middle East. 

The shares of this FMCG company majorly engaged in the manufacturing and trading of tobacco-based products in domestic and international markets whose product portfolio includes chewing tobacco, snuff grinders and match lights, jumped upto 5 percent in a day’s trading session upon securing an international long-term contract.

With the market capitalization of Rs. 18,357 Crores, the shares of Elitecon International ltd has reached an intraday high of Rs. 114.84  per equity share rising nearly 5 percent from previous day close of Rs. 109.38 per equity share. 

What is the NEWS

Elitecon International Limited has received a long-term international supply order from Yuvi International Trade FZE, an overseas entity, for the export of cigarettes, premix sheesha, hookah tobacco, smoking mixtures, and other tobacco-related products. 

The contract is valued at approximately USD 97.35 million or Rs.875 crores and has been awarded for a period of two years. This long-term agreement provides the company with clear export visibility and steady revenue over the contract duration. It also strengthens Elitecon’s presence in the Middle Eastern markets, supports efficient utilization of its manufacturing capacities, and is expected to contribute positively to the company’s long-term business stability and growth.

Company Overview and Financial Highlights

Elitecon International Limited is primarily engaged in the tobacco business, with operations spanning manufacturing and trading activities across India as well as multiple international markets. The company has established a strong global presence in regions such as the UAE, Oman, Saudi Arabia, Turkey, and Singapore, with its products reaching over 50 countries worldwide. Notably, its recent expansion into European markets now contributes around 35% of the company’s total revenue, highlighting the growing importance of overseas operations.

 Elitecon operates a fully automated manufacturing facility with a production capacity of over 80 million cigarette sticks per month, enabling efficient large-scale production. In addition to its core tobacco business, the company is also diversifying into the food segment by launching its own food brands in India, while simultaneously building a robust export pipeline to cater to global markets.

Quarter on Quarter Analysis: Elitecon International limited has increased from Rs. 525 Crores to Rs. 2192 Crores, up 317 percent. Its operating profit has increased from Rs. 73 Crores to Rs. 154 Crores, up 110 percent and its net profit has increased from Rs. 72 Crores to Rs 117 Crores, up 62 percent 

Written By Vachan Kadli

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