From ₹1 to ₹62: This penny stock jumped over 60 times in just 10 months; do you own it?

While investing in penny stocks is considered risky, many investors find it hard to resist their potential for hefty returns. Elitecon International is one such stock that has seen a meteoric rise in less than a year, emerging as one of the top-performing small-cap stocks on the BSE SME platform in recent times.

Elitecon, engaged in the manufacturing and trading of cigarettes, smoking mixtures, and other allied tobacco products, has witnessed a significant rally in the last ten months, with the share price surging from ₹1.1 on August 26, 2024, to a fresh all-time high of ₹62.96 on June 10, 2025. This means that if one had invested ₹1 lakh in Elitecon on August 26 last year, it would have grown to around ₹57 lakh by now.

Despite the absence of any major trigger, the Delhi-based company has been consistently hitting the upper circuit for several months. On Friday, Elitecon International shares ended 2.1% higher at ₹60.20 apiece on the BSE SME platform, with a market capitalisation of ₹9,623 crore. In the previous session, the cigarette stock was locked in its 5% upper circuit limit.

The recent rally in Elitecon shares can be attributed to its stock split and fundraising plans. On June 23, the small-cap company informed the BSE that it had completed a 10:1 stock split, making its shares ten times more affordable. As a result, each equity share with a face value of ₹10 was subdivided into ten shares with a face value of ₹1 each.

Additionally, the board of Elitecon is set to meet on July 1 to discuss and approve a proposal for raising funds up to ₹75 crore. The capital will be raised through preferential allotment, issuance of convertible warrants, Foreign Currency Convertible Bonds (FCCBs), Qualified Institutional Placement (QIP), or any other permissible instruments, subject to necessary approvals from shareholders, regulatory bodies, and other stakeholders, as stated in a BSE filing.

This fundraising initiative may utilise various methods, including preferential allotment, issuance of convertible warrants, FCCBs, QIP, or other permissible instruments/modes. The execution of any such fundraising will be contingent upon obtaining the necessary approvals from shareholders, regulatory bodies, and other relevant stakeholders, in compliance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Established in 1987, Elitecon International (formerly known as Kashiram Jain and Company Limited) reported consolidated revenue from operations of ₹313.89 crore in the fourth quarter ended March 31, 2025, up multifold from ₹94.89 crore in the same period last year. Consolidated profit rose 220% to ₹42.97 crore in Q4 FY25 versus ₹13.34 crore in the year-ago period. For the full financial year 2024–25, consolidated revenue stood at ₹551.36 crore, while profit stood at ₹69.65 crore.

The latest shareholding data for Elitecon International shows a significant increase in foreign institutional investor (FII) ownership, rising from 15.49% in the December 2024 quarter to 38.30% in March 2025. During the same period, promoter shareholding declined from 75% to 60%.

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