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Top 5 Most Expensive Shares in India 2023
Top 5 Most Expensive Shares in India 2023
There are over 2,266 companies listed on the NSE and 5,309, companies listed on the BSE, as of January 2024. While most of the shares in the Indian Stock Market are available under Rs. 1000, there are some companies that have the title of the most expensive share in India. These companies enjoy such high prices due to their strong fundamentals, brand name, and other different factors.
Top Five Most Expensive stocks in India in the Stock Market
Here is a list of the most expensive shares in India with price. Before investing, investors should know how to choose stocks for long-term investment.
1). MRF
MRF's full form is Madras Rubber Factory MRF is the first Indian share that crosses the 1 lakh per share mark and MRF is the highest share in India currently trading at 1,28,958 INR on NSE and BSE as of July 16, 2024. When first listed in the market on April 27, 1993, the company’s share closed at Rs.11 per share. MRF went to 96,000 its all-time High on 10 Feb 2021.
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Why MRF Share Price is High?
Apart from being a fundamentally strong company, one of the major reasons why MRF is the most expensive share in India is because they haven’t split its shares since the company has been listed on the stock exchange.
Another reason for the share price being this costly is the brand value MRF enjoys as a company because of its top-notch quality and durability.
The P/E ratio of MRF is 57.69 and the Industry P/E is 27.02 which signifies that MRF share is a bit on the expensive side but it is in the top 3 among its peers. Also, the company has a good cash flow and is virtually debt free.
Peer Comparison in Industry (as of June quarter 2022)
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2). Page Industries
Page Industries is engaged in manufacturing garments and was incorporated in India in 1995 with the aim of bringing the innerwear brand Jockey to India. Currently, the company has two main brands Speedo and Jockey. Page Industries is the second most expensive share in India. As of April 25, 2024, the shares price of Page Industries were being traded at a price of Rs. 35,992.
Monopoly over Brand Jockey
In India, Page Industries has the exclusive rights to manufacture, market, and distribute products of Jockey International USA under the brand name Jockey. Apart from India Page Industries has the rights to sell Jockey products in Sri Lanka, Bangladesh, Nepal, UAE, Oman, and Qatar.
The biggest advantage of Page Industries is that Jockey has a pan-India presence and it enjoys a monopoly over Jockey products in several countries which is a major reason why it is among the second highest share price company in India. Jockey is famous for its comfort and quality products and enjoys a good brand name.
India is developing at a swift pace with its per capita income increasing with time and as the majority of the population is young and brand aware, therefore, Jockey is expected to grow even in the future.
Strong Distribution Network
In this business, the distribution network plays an important role, and Page Industries has a strong distribution channel with over 1,131 Exclusive Brand Outlets (EBO) all over India. Apart from that Jockey is sold in over 2,580 large format stores such as Lifestyles, Pantaloons, and Shoppers Stop.
Financial Analysis of Page Industries
- Page Industries has an excellent gross profit margin of 50% across the last five years which speaks about the efficiency of the company.
- Another advantage that the company enjoys is a good operating profit margin in the last five years which tells us that despite various fixed and variable costs, the company is able to maintain good profits across the last five years.
- The debt to equity ratio of Page Industries is 0.10 which shows that they have negligible debt and do not have any obligation to pay any debtor.
- Another important ratio is the return on equity which shows how much returns the company is giving to its shareholders. Page Industrie’s average return on equity for the last five years is 46% which are extraordinary returns
Although the company’s fundamentals are very strong and it enjoys a good brand name and popularity among the youth, the shares of the company are a bit on the higher side but strong financials and monopoly over a popular brand make it a hot stock among the investors.
Peer Comparison in Industry (as of April quarter 2024)
3). Honeywell Automation India Limited (HAIL)
Honeywell Automation India Limited was established in 1984 and is a leading manufacturer and supplier of integrated automation products and software solutions which are extensively demanded products by various industries for ensuring the safety and smooth processing of homes and business premises.
In March 1993, the company was first listed on the BSE at Rs. 211.50, and as of September 5, 2022, and now it is among the Third most expensive share in India it is trading at Rs. 41,826 at NSE and 41,990 at BSE.
Strengths
The company offers a diverse range of products in the field of automation and combustion control, sensing controls, and engineering services to clients all over the world. HAIL has access to of some latest and cutting technologies from its parent company Honeywell International Inc. which gives it an edge over its competitors
Honeywell Automation is in a better position to provide its services through its diverse business segments to various industries such as Oil and Gas, Chemical/ Petroleum, Airports, Transport, Defence and many more.
Financial Analysis of HAIL
The HAIL is almost debt free and has delivered good profit growth of 19.13% over the past five years. Revenue of HAIL has gone down from Rs. 3,290 Cr in 2020 to Rs. 2,948 Cr in March 2022 and Net profit has gone down to 339 Cr in March 2022 from 491 Cr in 2020.
The ROE of the company has gone down to 12.5% in March 2022 from 19.30% in 2021. However, there has been considerable improvement in the first quarter of 2022 as the net profit of the company soared to 102 Cr in June 2022 from 73Cr in March 2022 and in the same quarter the EPS of the company has gone up from 115.33 to 82.19.
Peer Comparison in Industry (as of June quarter 2022)
4). 3M India
3M India is not a brand that you must have heard of that often because it is mostly the brand behind other brands. It is a subsidiary of 3M USA. It operates in four segments: Safety and Industrial, Transportation & Electronics, Health Care, and Consumer.
The safety and industrial sector provides Polyester, vinyl, foil, and specialty industrial tapes, scotch filament, scotch-making tapes, and packaging tapes. The health segment provides medical equipment and surgical devices such as skin and wound care, infection prevention products, and solutions.
The transport and electronics segments provide services in personal protection products, brand and asset protection solutions, border control products, and many more whereas the Consumer segment offers home and office tapes, adhesives, and packaging protection under the Scotch brand.
Strengths
With over 60000 products in its portfolio, 3M India with its science-based technology and diverse products provides solutions in almost every industry. With such diverse products in different industries, it can be termed a recession-proof stock as the companies have a diverse baseline with strong fundamentals.
Financial Analysis of 3M India
3M India is the Fourth most expensive share in India. As of April 25, 2024, the share price of 3M closed at Rs. 22,751 and the company is virtually debt free. The 3M India is trading at a high PE of 81.4 and the company has shown slow revenue growth of 4.38% for the past 3 years.
The company has a healthy interest coverage ratio of 121 and a sound liquidity position having a current ratio of 3.12.
Peer Comparison in Industry (as of June quarter 2022)
5). Shree Cements
Shree Cements is one of India’s Leading players in the cement industry. It is third after Ultratech cement and Ambuja in terms of market capitalization. The are three brands under Shree Cements namely: Shree Ultra Junk Rodhak.
Strengths
Shree Cements is one of the leading manufacturers of cement in North India and has carried out successful operations in Haryana, Punjab, Himachal, J&K etc. Shree Cement has also diversified its presence in the power sector with Shree Power and Shree Mega Power.
Financial Analysis of Shree Cement
Shree Cement has been able to maintain a good profit growth of 4.81% for the past 3 years and its debt has considerably decreased by 8,256 Cr. Apart from it, the company has been successful in maintaining effective average operating margins of 26.4% in the last 5 years.
Peer Comparison in Industry (as of June quarter 2022)
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Things to remember before investing in the most expensive stocks.
Investing in an expensive stock can be a good investment. In order to invest in the most expensive stocks in India, you should keep the following points in mind.
- Assess the management team's track record and ability to lead the company.
- Determine whether a stock is overvalued or undervalued by comparing its price to its earnings, cash flow, and other financial metrics. Take into account the volatility of the stock and its potential downside risk.
- Investing in expensive stocks is considered good for long-term investments, but make sure you consider your budget, financial plan, and risk appetite when investing in them. You should therefore consider your budget and risk tolerance prior to investing in expensive stocks.
Conclusion
These are the top 5 most expensive stocks in India on the basis of their share prices. Though it is not necessary that they must be the best-performing stocks of India but all of them are fundamentally strong companies and enjoy a good brand value in their respective industries.
FAQ
Que 1. Which is the most expensive stock in the world?
Ans. Berkshire Hathaway is the most expensive stock in the world. It is the company headed by Warren Buffet who is the richest and the most influential investor in the world. The share of Berkshire Hathaway is priced at $6,13,420 per share in Indian Rs it is 5,09,13,860 of April 25, 2024.
Ques 2. List of share price above 10,000?
Ans. Here is the list of Share Price above 10000 in India are:
Ques 3. List of Most Expensive Share In The World?
Ans. Here is the list of the Most Expensive Share In The World.
Que 4. Should we buy the most expensive stocks on the basis of their share price?
Ans. While a higher share price can be an indicator of a well-performing company but a higher price does not necessarily mean that it is a good company. Before investing in a company you must analyze the financials of a company by going through its Balance sheet, profit and loss statement, cash flow statement, and some important accounting ratios such as Debt to Equity ratio or profit margin ratio.
Que 5. Which were the most expensive stocks of 2021?
Ans. The same Stocks which are in the top 5 most expensive shares in 2022 were also the Top 5 Shares in 2021 which are:
1). MRF
2). Page Industries
3). Honeywell Automation India Limited (HAIL)
4). 3M India
5). Shree Cements
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