Elitecon International has signed a $60 million tobacco supply agreement with South Africa's World Class 77. Despite this, the stock dropped 5% on the NSE as investors remain cautious. The company has seen its shares decline over 81% this year, trading near 52-week lows, reflecting ongoing market skepticism toward its financial turnaround.
Elitecon International has entered a $60 million tobacco supply agreement with South Africa-based World Class 77. The contract, valued at approximately ₹574.20 crore, involves sourcing tobacco from the company's facility in Nashik over the next year. This move is part of the firm's attempt to diversify its export business beyond its existing operations in the UAE and Singapore.
Despite the size of the order, the market reaction was negative. Shares of Elitecon International closed at ₹8.63 on the National Stock Exchange on September 28, marking a decline of nearly 5% on volume of 97.26 lakh shares. The stock has been under significant pressure throughout 2026, falling over 81% year-to-date and currently trading near its 52-week low of ₹7.08. This is a sharp reversal from its 52-week high of ₹46.40, which was recorded earlier in April.
This deal represents the first major commercial update following a leadership change in the summer of 2026. The new management team, led by Executive Director Vipin Sharma and Managing Director Pradeep Kumar, is working to stabilize the company's operations. The firm recently reported a massive surge in its fiscal 2026 consolidated revenue, which reached ₹5,074.80 crore—a ten-fold increase compared to the previous year. This jump was primarily driven by the integration of the edible oil business, specifically the inclusion of Landsmill Agro and Sunbridge Agro.
While the company reported a profit after tax of ₹185.06 crore, up 2.7 times from the year before, investors seem hesitant to price these gains into the stock. The market appears concerned about the sustainability of this growth and whether the business model, which relies on both commodity-linked edible oils and new export segments, can deliver consistent, high-quality profits. The transition from a largely edible oil-focused firm to one with diversified exports is a strategic shift, but the immediate impact on the company's cash flow and margins remains the primary point of investor interest.
For shareholders, the key monitorable will be the actual execution of this export order and whether the new management can provide more clarity on how these diverse business segments will contribute to long-term stability. The market will likely look for consistent performance in future quarterly results to determine if the stock can move away from its recent lows.