5800% return in five years! BSE-listed small-cap tobacco stock jumps over 4%. Do you own?

Elitecon International share price continued its upward trend for the third consecutive session on Thursday, February 19. This surge has coincided with reports indicating that cigarette companies have raised prices to mitigate the effects of a recent excise duty increase.

Elitecon International share price today opened at ₹78.70 apiece on the BSE, the stock touched an intraday high of ₹79.31 per share, and an intraday low of ₹76.10 apiece.

According to media reports, this strategy from cigarette manufacturers is viewed as a necessary measure to safeguard profit margins, with the anticipated decline in EBIT adjusted to approximately 2%, a significant decrease from previous projections which ranged from 8–15%. These developments follow the government's announcement on February 1, which concluded the GST compensation cess and initiated a fresh tobacco taxation framework.

Under the new tax structure, excise duties on cigarettes have been modified to fall between ₹2,050 and ₹8,500 per 1,000 sticks, in addition to a 40% GST. This updated taxation regime has considerably heightened the overall tax burden, raising concerns regarding demand trends, margins, and the risk of increased illicit trade.

Furthermore, according to reports, the Budget has incorporated a notable adjustment to the National Calamity Contingent Duty (NCCD). The statutory NCCD rate for tobacco products is set to surge from 25% to 60%, effective May 1, 2026.

However, it was also clarified that the effective duty rate would remain at 25% through official notification, indicating there will be no immediate tax burden increase for cigarette companies. Therefore, although the duty remains unchanged for the time being, the government has positioned itself to implement a future increase without necessitating another legislative amendment.

Elitecon Intl manufactures and trades various tobacco products, including cigarettes and other items commonly associated with tobacconists.

Elitecon International Q3 results

According to an exchange filing, the company has announced a slight delay in the submission of its financial results for the quarter ended December 31, 2025.

This delay is due to recent acquisitions made by the company and the consolidation of financial results from all its Indian and overseas subsidiaries. The statutory auditors are currently reviewing the financial statements to ensure accuracy and compliance with applicable regulatory and auditing standards.

The company is fully cooperating with the auditors to expedite the review process. Once the review is completed, the financial results will be submitted to the Stock Exchange without delay, as stated in the filing.

Management remains confident in the company’s operations and is continued to focus on enhancing business performance and governance standards, as noted in the exchange filing.

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