Elitecon International share price continued its upward trend for the third consecutive session on Thursday, February 19. This surge has coincided with reports indicating that cigarette companies have raised prices to mitigate the effects of a recent excise duty increase.
Elitecon International share price today opened at ₹78.70 apiece on the BSE, the stock touched an intraday high of ₹79.31 per share, and an intraday low of ₹76.10 apiece.
According to media reports, this strategy from cigarette manufacturers is viewed as a necessary measure to safeguard profit margins, with the anticipated decline in EBIT adjusted to approximately 2%, a significant decrease from previous projections which ranged from 8–15%. These developments follow the government’s announcement on February 1, which concluded the GST compensation cess and initiated a fresh tobacco taxation framework.
Under the new tax structure, excise duties on cigarettes have been modified to fall between ₹2,050 and ₹₹8,500 per 1,000 sticks, in addition to a 40% GST. This updated taxation regime has considerably heightened the overall tax burden, raising concerns regarding demand trends, margins, and the risk of increased illicit trade.
Furthermore, according to reports, the Budget has incorporated a notable adjustment to the National Calamity Contingent Duty (NCCD). The statutory NCCD rate for tobacco products is set to surge from 25% to 60%, effective May 1, 2026.
However, it was also clarified that the effective duty rate would remain at 25% through official notification, indicating there will be no immediate tax burden increase for cigarette companies. Therefore, although the duty remains unchanged for the time being, the government has positioned itself to implement a future increase without necessitating another legislative amendment.
Elitecon Intl manufactures and trades various tobacco products, including cigarettes and other items commonly associated with tobacconists.
