Shares of diversified FMCG company Elitecon International opened with a gap today, even as stock market benchmark indices Sensex and Nifty declined in early deals, tracking weak trends in global equities and rising crude oil prices amid escalating tensions between the US and Iran. While the 30-share BSE Sensex declined 358.54 points to 73,624.64, the 50-share NSE Nifty dropped 117 points to 23,098.30. Despite this weakness, shares of the company started the trading session at Rs 33.06, a gain of 2.32 per cent from the previous close of Rs 32.31 on the BSE. Amid heavy trading volume, the scrip advanced further and touched the intraday high of Rs 36, representing a gain of 11.42 per cent.
Profit booking at higher levels
However, the stock witnessed profit booking at higher levels and fell to touch the low of Rs 29.30, a dip of Rs 3.01 or 9.31. Last seen, the stock was trading at Rs 29.92 with a fall of Rs 2.40 or 7.43 per cent. The market cap of the company stood at Rs 4,781.11 crore.
The counter has traded in a wide range of Rs 6.7 today and has been highly volatile with an intraday volatility of 8.14 per cent
Today’s decline comes after two days of consecutive gains and is trading above the 5-day moving average but below the 20-day, 50-day, 100-day, and 200-day moving averages.
The stock’s 14-day relative strength index (RSI) is 48.86. For the uninitiated, a level above 70 is considered overbought or overvalued, and below 30 is defined as oversold or undervalued.
Rs 700 crore expansion plan
The company has shared a Rs 700 crore expansion plan. According to the FMCG company, it plans to build a distribution network targeting 5,000 partners and presence across 5,00,000+ retail outlets and 15+ international markets over time. The company also aims to develop a portfolio featuring 10 consumer brands and over 150 stock-keeping units (SKUs). According to the company, the production will be spearheaded by its existing manufacturing facility in Nashik. The firm also said that the facility is undergoing capacity additions and automation upgrades.
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(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)
