Are you a stock market freak or a newbie gathering information about the vibrant share industry? Or even an expert collecting data for your next trading strategy, this post might be of your interest for sure. Here we shall be discussing Top 10 Companies with highest share price in India. Or you can say, the most expensive stocks i.e. the costliest shares based on their trading price in the market.
Now, before we get into the details on these high-priced shares, let’s firstly get acquainted with a few basics.
Share markets are often a place of hustling and bustling economic activities, well mostly people earning and losing money. But that does surmise the basic function of both economy and capitalism. However, as proficient the impact of equities and debt market is on the lives on people, its knowledge, not so much. With that, let’s get into it.
What is a Share Price?
Let’s understand what a share is first. The formal definition is that “a share represents a financial stake or interest in an organisation”. But this isn’t a textbook.
Think of it this way, A company is a cake. A strawberry cheese-cake, if you will. With whipped cream and cherries on top. Now if you cut out a piece from it, that’s a share, an equity share. A share represents a piece of that cake. A share price is what you pay to acquire that piece.
If you buy a piece of that cake, you will own it. I know, but stay with me. That basically means that if you buy a share, you buy and own a piece of that company. However; and emphasis on however because this is important, unlike cake, you cannot eat a share. Sad, right?
But, if someone decides that your piece of that cake is worth more than what you bought it for; and this someone is economy & market forces, you can sell it for a hefty profit, a capital gain. This goes both ways. You can make a loss if market forces decide that that piece is worth less than what you paid for it.
When a company consistently maintains a high share price, it is a good signal of stability. But, does that always hold true? Is investing in such a company good? Does it guarantee the fundamental strength of the company with a high share price? Read further and try to find answers to these tricky questions.
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Now, let’s catch up with the details on some of the most expensive shares in India.
Top 10 Most Expensive Shares/Stocks in India
Important: All the share prices as given below are as on June 26, 3:30 PM
1. MRF Limited
MRF Share Price: Rs.66,348
Contrary to once popular belief, MRF does not make bats. MRF is a tyre company, with its headquarters in Chennai and is involved in manufacturing of rubber products like tyres, treads, tubes and conveyor belts.
MRF has the highest share price in India. Looking at the companies listed at BSE/ NSE, you can easily analyse that MRF holds the record of the most expensive stock in India. Counted as a top performer, the company also experienced an all time high crossing the Rs. 80000 mark in the year 2018. That’s unbelievable, but true!
2. Honeywell Automation India
Honeywell Share Price: Rs. 31,000
Next to MRF, this is the second-most expensive share in India. Honeywell Automation India is a subsidiary of a California based international conglomerate by the same name. Honeywell operates in aerospace and building technologies, performance materials & technologies, and safety & productivity solutions.
3. Shree Cement –
Shree Cement Share Price: Rs. 22,674.45
With its headquarters in Kolkata, Shree Cement was founded in 1979 in Beawar district of Rajasthan. It is currently one of the biggest cement manufacturers in Northern India and among the top 3 contenders of companies with highest share price.
4. Page Industries
Page Industries Share Price: Rs. 20,200
Page Industries is a licensee of Jockey International (a leading brand for inner wear) and Speedo in India, with exclusive rights, founded by Genomal Family in 1995.
5. 3M India Ltd.
3M India Ltd. Share Price: Rs. 19,130
3M India is a subsidiary of international conglomerate 3M Company. A company involved in various fields like health care, dental and cleaning products, its shares are also in the costliest category.
6. Eicher Motors
Eicher Motors Share Price: Rs. 18,500.00
Eicher Motors is primarily a motorcycle and commercial vehicle manufacturing company, which happens to be the parent company of Royal Enfield motorcycles, a brand name well-versed among Indian biking circles.
Nestle Share Price: Rs.16,671.65
You might have already heard about this company for sure! Nestle India is a subsidiary of a Swiss company by the same name. It is the largest food company in the world, its products including brand names, such as Nescafe, Maggi, Milkybar, Milo, Kit Kat, Bar-One, Milkmaid and Nestea.
8. Abbott India Limited
Abbott India Ltd. Share Price: Rs.15,924.00
This is another company that ranks well in the highly priced shares collection. Abbott India is a subsidiary of Abbot Laboratories. Abbott India is a pharmaceutical company which has nutritional products, diagnostic tools, branded generic pharmaceuticals, and diabetes and vascular devices under its portfolio.
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9. Tasty Bite Eatables
Tasty Bites Eatables Share Price: Rs.12,023.95
Discussing of Tasty Bite Eatables, this is a frozen food manufacturing company, which was started in US in 1995. The company has since then grown globally, and started operations in India in 2006. Currently, the company has frozen ready to eat foods, gravies, sauces and more under its portfolio.
10. Bombay Oxygen Corporation-
Bombay Oxygen Corporation Share Price: Rs.11,400.00
A manufacturer of industrial gases like oxygen, argon nitrogen and carbon dioxide, Bombay Oxygen Corporation also holds a strong position when it comes to high share price. However, a majority of company’s revenue comes from investments in equities and debt markets.
This was our cluster of the most expensive stocks in India. Having gone through it, do you think, the higher the share price goes, the better it is? Well, like in life and Multiple Choice Questions (MCQs), there could be various answers here too.
Is High Share Price Always Good?
The quick answer is: No.
So, is it always bad? No. Then what’s correct? The real thing is that share price by itself doesn’t mean anything, without past or future data.
Highest Share Price in India: What to Know?
Remember the strawberry cheese-cake with whipped cream and cherries (we talked in the beginning) to understand what a share price represents. At one time, all the pieces of cake are worth something, say amount x. The total worth of all such pieces makes the entire value of cake, or market capitalization of company, which is x times the number of pieces. But here comes the tricky part! This value, its market capitalization is not what the cake is worth, it is the total of the price people who are purchasing it are willing to pay for it.
Now the question arises, is there a difference between these two, and if yes why?
There several theories to it, some that deny the existence of such phenomenon like Efficient Markets Theory, but simple answer is yes. because of anticipation. The idea is if many people, or market forces believe that this price will rise, they buy into it with an anticipation of profit, causing a disruption in demand and supply chain effectively resulting in rise of price. This could be due to various news and articles as well. This does not mean the cake is suddenly worth more, it just means people are willing to pay more for it.
Is it Always a Good Investment?
This may not be always good either for the company or the people who buy into it. One, because the company is suddenly worth more in the market than what it is actually worth, which means there is expectation of up scaling in terms of business management, revenue, customers and product. And if the company fails to meet those expectations, the market corrects itself and the price falls.
More importantly, a share price is just a division of value. Say there are two companies, whose market cap is 1000 rupees. Company A decides to divide that into 100 parts, making each share worth 10 rupees. Company B decides to divide it into 10 parts, making each part worth 100 rupees. Now because the share price of B is worth more than A, it doesn’t mean it is a better company.
Ergo a high share price of a company by itself is a signal of nothing! But, a share price compared to its company’s market capitalization, net worth, industry averages and trends, could mean something.
The Bottom Line
Conclusively, this can be a complicated concept to grasp, especially if you’re a new comer. So, keep your stock market basics crystal clear and then plan your investments. But, if you take one thing away from this, take these two: Strawberry cheese-cakes with whipped cream and cherries are awesome and you can eat cakes but not shares.