1120% YTD return! Multibagger stock hits upper circuit for eighth day in a row . Should you buy or sell?

Multibagger stock: Elitecon International share price hit the upper circuit for the eighth consecutive session on Wednesday, December 17, as it rallied 5% to its upper price band of ₹126.60 apiece in trade today.

The small-cap multibagger stock has surged as much as 40% during this period. In fact, the stock has doubled its investors' wealth by giving 120% returns in just six months and 1,121% on a year-to-date (YTD) basis.

What's behind the rally?

Elitecon has signed a $97.35 million or ₹8.75 billion multi-year export agreement with UAE-based Yuvi International Trade FZE, marking one of the largest finished FMCG-tobacco export deals from India to the Middle East.

The company said the agreement entails supplying cigarettes, premix sheesha, hookah tobacco, smoking blends, and other tobacco-related products. It includes a one-year lock-in clause and is expected to ensure consistent export volumes over the contract period.

According to the company, the arrangement will enhance capacity utilisation and enable more efficient production and logistics planning. It also reinforces Elitecon’s presence in Middle Eastern markets, where demand for tobacco-linked products remains stable.

The filing further noted that Elitecon’s wholly-owned subsidiary, Golden Cryo Private Limited, is authorised to manufacture, store, manage, and ship products on the company’s behalf under the agreement. The contract will take effect from January 1, 2026, and will be valid for two years unless terminated earlier.

“The multi-year export agreement marks a significant milestone for Elitecon and reflects sustained global demand for value-added FMCG products manufactured in India. We have been a committed foreign-exchange contributor, and this contract further supports India’s broader export-led growth agenda through value-added product exports. The mandate will enable us to scale further, creating many direct and ancillary employment across the value chain,” said Vipin Sharma, MD, Elitecon.

Elitecon International Q2 results 2025

Elitecon International delivered a strong showing in the September 2025 quarter (Q2 FY26), posting significant gains across its key financial indicators.

Quarterly net sales soared 318% to ₹2,192.09 crore, while net profit rose 63% to ₹117.20 crore compared with Q1 FY26, highlighting solid operational traction.

For the first half of FY26, revenue climbed 581% to ₹3,735.64 crore, and net profit increased 195% year-on-year, pointing to sustained demand and the benefits of improved operating scale.

Elitecon International share price: Should you buy or sell?

Brokerage firm Khandala Securities has given a ‘buy’ rating to the Elitecon International stock, with a target price of ₹136.

The brokerage firm, while seeing upside potential up to 25%, said, “Investor confidence is evident through ₹1,360 million raised in FY25 and approval for up to ₹3,000 million via QIP, funding capacity expansion, FMCG acquisitions, innovation, and long-term growth."

Khandwala Securities said the stock trades at 28.11x FY27E EPS of ₹3.88, a discount to sector peer Godfrey Phillips India Ltd., which trades at 35x, highlighting Elitecon’s differentiated growth profile and earnings visibility. The brokerage said that's why it is overweight in this particular scrip for the long term.

At the same time, brokerage firm MSearch has recommended a ‘buy on dips for the long term' rating on the stock.

“On valuations, current multiples remain elevated relative to industry averages, reflecting optimistic growth expectations. We believe a conservative re-rating toward midrange high-growth multiples is more realistic unless earnings growth materially outperforms. Based on an expected ~20% CAGR in PAT over the next two years and assuming valuation normalisation, we assign a 12–15 month target price of ₹140, implying an upside of ~28% from current levels. Investors, however, should remain mindful of market volatility and liquidity risks and adopt disciplined position sizing for long-term exposure,” it said.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.