1. At a Glance

Welcome to the wildest comeback in Dalal Street history —Elitecon International Ltd (BSE: 539533), once a forgotten tobacco trader, now a ₹26,000 crore market cap “turnaround” rocket ship. From a mere ₹5 in 2023 to ₹423 in 2025 before cooling to ₹163 — that’s not a multibagger, that’s a NASA trajectory with nicotine propulsion.

The latestQ2FY26 (September 2025)results screamresurrection with side drama:Revenue at ₹505 crore (up538% YoY), PAT at ₹20.2 crore (up129% YoY), but hey — the taxman wants his share too, courtesy a₹387.43 crore GST show cause notice. Because what’s an Indian turnaround without some regulatory masala?

At₹163 per share, the stock trades at a jaw-droppingP/E of 438xand aprice-to-book of 161x. ROE is a bonkers124%, ROCE at33%, but dividend yield — the corporate equivalent of dry tobacco — sits at0.00%. Promoters hold 59.4%, FIIs 38%, and the public, well, just watches from 2.3%.

From “no revenue and losses” to “quarterly ₹505 crore sales,” Elitecon’s transformation is either a masterstroke of business pivot or the most poetic financial miracle since Harshad’s days. Buckle up.

2. Introduction

Let’s rewind. Once upon a time in 1987, a humble tobacco company was born —Elitecon International Ltd, best known for its dreams rather than numbers. For years, the balance sheet was quieter than a smoker trying to hide from his wife. Then, somewhere around FY23–24, the script flipped.

Suddenly, the company started spewing announcements faster than cigarette smoke rings: acquisitions, preferential issues, QIPs, overseas subsidiaries, convertible warrants — the whole Bollywood-style corporate comeback. They boughtPandokhar Food LLP,Golden Cryo Pvt Ltd, formed a UAE subsidiary, and now even want to buy FMCG companies. Because why stick to one addictive product when you can own the entire shelf of bad habits?

From a₹5 penny stockto₹423in under two years — it’s the sort of move that makes small investors feel like prophets… until gravity reminds them that valuation also exists. The 3-month return?-34%. The 6-month?+353%. Truly the stock market’s version of bipolar disorder.

The irony? Despite 403% profit CAGR over 5 years, Elitecon still doesn’t pay dividends. Maybe they believe in reinvesting… or repackaging. Either way, FY26 is shaping up as a test of whether this rebranding is sustainable — or just a puff of smoke.

3. Business Model – WTF Do They Even Do?

So what does Elitecon actuallydobesides make investors faint?

Well, officially,they manufacture and trade tobacco-based products— fromsmoking mixtures,cigarettes, andflavored molassestokhaini,zarda, and even something called “Yummy Filter Khaini.” (Yes, they really named itYummy; only in India can carcinogens be branded appetizingly.)

But the real twist lies in theirexpansion binge. Elitecon has now entered international markets — UAE, Singapore, Hong Kong, UK, and parts of Europe. They even plan to diversify into matchsticks, pipes, and snuff grinders — basically every 19th-century smoker’s starter pack.

Recent acquisitions show they’re also venturing intofood, cryogenics, and FMCG. From “smoke to snacks,” the diversification logic seems to be: “If it sells, we’ll buy it.” Their UAE subsidiary hints at ambitions to globalize the brand, and given the Indian tobacco industry’s regulation-heavy landscape, offshore expansion might be a clever escape route… or a smoke screen.

So yes — they sell tobacco, dream FMCG, and occasionally issue warrants worth ₹158 crore to themselves. Sounds messy? That’s because it is. But in the land of small caps, chaos is a business model.

4. Financials Overview

Annualised EPS:₹0.52 → P/E = 163 / 0.52 =~313x(but Screener’s showing 438x, depending on TTM EPS of ₹5.8).Anyway, whichever way you slice it —this stock is priced like it sells oxygen, not tobacco.

Commentary:Revenue growth is extraordinary — from ₹79 crore to ₹505 crore in a year. EBITDA margins remain thin at 4–7%, but profitability consistency is new