Technically, the stock trades higher than the 5-day, 20-day and 200-day moving averages but lower than the 50-day and 100-day moving averages.
Shares of the cigarette and tobacco products manufacturer company Elitecon International are in action today, even as benchmark indices Sensex and Nifty declined on Tuesday amid continuous foreign fund outflows and weak global market trends. The counter opened gap up with a gain of 4.49 per cent today at Rs 120.58 against the previous close of Rs 114.84 per cent. The stock gained further amid a spurt in trading volume by more than 1.44 times and touched Rs 120.58, hitting the upper circuit for the seventh session straight. The market cap of the company stood at Rs 19,274.71 crore.
The stock has been gaining for the last eight days and has risen 40.34 per cent in the period. Technically, the stock trades higher than the 5-day, 20-day and 200-day moving averages but lower than the 50-day and 100-day moving averages.
The stock has a 52-week high and low of Rs 422.65 and Rs 8.34, respectively.
What’s behind the rally?
The action in the stock comes as the company recently announced in a filing that it has secured a long-term supply contract from Yuvi International Trade FZE. Under this contract, the company will supply cigarettes, premix shisha, hookah tobacco, smoking mixtures, and other tobacco-related products for the next two years.
The total value of this order is approximately USUSD 97.35 million (approximately RS 8.75 billion). According to the filing, this order will provide the company with stability on the export front, ensure better utilization of factory capacity, and help in operational planning.
The company said in its filing that this order will further strengthen the company’s presence in the Middle East markets.
Share price history
According to BSE Analytics, the stock has delivered multi-bagger returns of 119 per cent to investors in six months. On a yearly basis, the stock has gained more than 1062 per cent.
