Shares of diversified FMCG company Elitecon International Ltd jumped 5 per cent and were locked in the upper circuit at Rs 41.47 after the company informed exchanges that it has been awarded a major long-term supply contract valued at approximately Rs 2.02 billion or Rs 202 crore from an entity based in Johannesburg, South Africa. Amid this update, the stock opened in green at Rs 40 against the previous close of Rs 39.50 on the BSE. The counter gained further to touch the high of Rs 41.47, a gain of 5 per cent from the previous close. The market cap of the company stood at 6,614.59 crore. In the last trading session had gained around 2.50 per cent. The counter has been gaining for the last two days and has risen 7.52 per cent in the period.
Outperforms sector by 3.9%
The counter has outperformed the sector by 3.9 per cent and is trading higher than the 5-day moving average but lower than the 20-day, 50-day, 100-day and 200-day moving averages.
The stock’s 14-day relative strength index (RSI) is 28.87. For the uninitiated, a level above 70 is considered overbought or overvalued, and below 30 is defined as oversold or undervalued.
Key details of the export order
The company has received an export order worth about Rs 2.02 billion from the South African company Bozza Tobacco (PTY) Ltd for the supply of cigarettes and other tobacco products. The contract is a long-term supply agreement with a two-year performance period, effective April 6, 2026. Also, the company said that payments are structured to be settled within 90 days.
According to the filing, the order will provide the company with stability in exports, help in better utilisation of manufacturing capacity and strengthen the company’s presence in the African market, especially South Africa, thereby boosting business growth in the long term. The agreement marks a significant expansion for the company into the African continent.
(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)
