Elitecon International Limited

Consumer Defensive — Tobacco · NSE

₹6.91−₹0.18 (−2.54%)

DalalBaazaar Score

70 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

The 60-second version of Elitecon International Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Elitecon International Limited manufactures and trades in tobacco and other related products in India, the United Arab Emirates, Singapore, Hong Kong, Europe, and the United Kingdom. The company operates in two segments, Tobacco Products and Agro Commodities.

IndustryTobacco

SectorConsumer Defensive

Employees33

Annual revenue₹5,075 Cr

How does it make money?

Turns over ₹5,075 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 33 employees supports ₹153.78 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹153.78 Cr

Who are its competitors?

The closest listed comparisons in its industry are ITC LTD, HINDUSTAN UNILEVER LTD., NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 34.2% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE51.0%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +8655% while net margin moved -102% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+8655%

Margin effect-102%

DalalBaazaar Score

70/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.19 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

72/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

83/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

6.0x

Sector Median

43.3x

median of 4 sector peers

🟢Against its sector it trades 86% below the peer median of 43.3x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

43.3x median of 4 peers · -86%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

5.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from -130.2% to 4.7% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
High return on capital employed
ROCE of 34.2% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 328% over 3 years, from ₹66 Cr to ₹283 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 10381% against revenue up 8655% — sales are being booked faster than they are collected.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 13111% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 34.2% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from -130.2% to 4.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 86% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 10381% against revenue up 8655%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 258% a year✓ 344.0% CAGR
Latest reported year was 1750.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 3%✓ 4.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹92 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 31%✓ 34.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 10 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high

Price history

Quick Metrics

6 good · 4 neutral · 1 weak

Market Cap

₹1,105 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

6.0x

Cheap

Cheap against the generic band

P/B Ratio

2.79x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1.16

Profitable

Profitable on a per-share basis

ROE

46.4%

Strong

Strong capital efficiency

ROCE

34.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.71x

Moderate

Moderate leverage

Revenue Growth (YoY)

1750.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-94.1%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹92 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

7.6%

Average

Average margins

Net Margin

6.1%

Average

Average bottom-line conversion

Current Ratio

1.44

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.19

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

RSI (14)

10.7

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹58 Cr	₹57 Cr	₹549 Cr	₹5,075 Cr	+344.0%
EBITDA	-₹75 Cr	₹7 Cr	₹72 Cr	₹240 Cr	—
EBITDA Margin	-130.2%	12.8%	13.0%	4.7%	—
PAT (Net Profit)	-₹78 Cr	₹5 Cr	₹70 Cr	₹162 Cr	—
EPS	₹-64.61	₹3.95	₹0.44	—	—
ROE	—	—	43.5%	46.4%	—
ROCE	—	7.0%	43.3%	34.2%	—
Total Debt	₹66 Cr	₹143 Cr	₹3 Cr	₹283 Cr	+62.4%
Free Cash Flow	-₹37 Cr	-₹79 Cr	-₹5 Cr	₹92 Cr	—

🟢 Revenue has grown at 344.0% a year over 3 years.

🟢 EBITDA has turned positive, from -₹75 Cr to ₹240 Cr.

🟢 EBITDA Margin has risen from -130.2% to 4.7% over 3 years (+135.0 pts).

🟢 PAT (Net Profit) has turned positive, from -₹78 Cr to ₹162 Cr.

🟢 ROE has risen from 43.5% to 46.4% over 3 years (+2.9 pts).

🟢 ROCE has risen from 7.0% to 34.2% over 3 years (+27.2 pts).

🔴 Total Debt has grown at 62.4% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹37 Cr to ₹92 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,963 Cr

Total Liabilities

₹1,407 Cr

Cash & Equivalents

₹6 Cr

Operating Cash Flow

₹96 Cr

Capex

-₹5 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

93.5%

Peer Comparison

Company	P/E	ROE
ITC LTD	16.6x	27.4%
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

6 general

Elitecon International Ltd Share Price

Business Today, 16 Oct

Elitecon International Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 29 Aug

Elitecon International | Stock Share Price Live

MarketSmith India, 13 Aug

Elitecon International Share Price at Fresh 52-Week Low

Univest, 27 Aug

Tobacco Stock Elitecon International In Focus: Company Signs Up To Rs 574 Crore South Africa Supply Pact

Goodreturns, 28 Sept

Small-cap stock under ₹50 hits 5% upper circuit following stock market rebound

Livemint, 01 Sept

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Profitability · Valuation

MiddlingBusiness Quality

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑