In accordance with SEBI norms, Elitecon International Limited, a BSE-listed FMCG firm that deals in cigarettes and tobacco products, has notified the stock exchanges that it has received a sizable long-term international supply order.

Yuvi International Trade FZE, an international organization, has given the firm a two-year long-term supply contract for the delivery of cigarettes, premix sheesha, hookah tobacco, smoking mixtures, and other products related to tobacco. The contract’s total value is around USD 97.35 million, or Rs 8.75 billion.

Elitecon International’s shares began down on the BSE today at Rs 108 per share following the news, but they picked up pace and rocketed to an upper circuit limit at Rs 114.84 with a 5% upside gap during the afternoon session on Monday, December 15. The company’s market capitalization surpassed Rs 18,350 Cr. The aforementioned order was received in the regular course of business and does not entail any interest from the promoter or promoter group, nor does it fall under related party transactions. The firm claims that the deal improves operational planning, enables effective use of manufacturing capacity, and provides excellent export visibility. Additionally, it enhances Elitecon’s presence in Middle Eastern markets and is consistent with its strategy focus on growing exports and developing a scalable, sustainable business model.

Despite a recent 5% price surge to 114.84, Elitecon International Ltd. (KASHIRAM) shows indications of a medium to long-term downturn based on the technical analysis data provided on Trendlyne. Importantly, according to trend-following indicators, the current price is trading below both its 50-day Simple Moving Average (SMA-50 at 133.9) and its 200-day Simple Moving Average (SMA-200 at 116.8), suggesting broader negative momentum. On the other hand, the momentum oscillators, such as the Day MFI (45) and Day RSI (47.8), are situated in the mid-range, indicating a neutral short-term momentum.

Source: goodreturns.in