The share market can be exciting as well as scary. Exciting if you are comfortable with the rollercoaster of emotions and prices. But scary if you aren’t used to it. Whether you love to invest in stocks or are just starting out, it may help to learn from the very best and keep an eye on them. So here’s our list of the most expensive shares in India this year.
An overview of the 5 most expensive shares in India
Before looking at the most expensive shares out there, it may help to know the highest stock price in India. It will help you know what to expect and know when something is overpriced. So take a minute, go ahead.
Go…! Run along now.
Well, you see, most stocks in India trade for a share price of less than ₹1,000 per share. So, you now know much of a rarity these high-priced stocks are. However, remember that prices change all the time, and ensure due diligence before making any investments.
Madras Rubber Factory (MRF) is a tire-making company. It is one of India’s oldest, and the reputation of this brand is a key cause for its high stock price. MRF consistently has one of the highest share prices in India.
At press time, the price of MRF shares on BSE is around ₹89,000. The high value cannot be attributed only to its performance. Customer loyalty, too, plays a key role in this company’s high share price. That’s why MRF’s share price has managed to stay this high for so long.
2. Honeywell Automation India
Honeywell Automation India is a software solution company with a really good turnover. The company also provides digital automation services. With a market capitalization of more than $350 million, Honeywell has been listed on both BSE and NSE. It has among the highest share prices in India.
The share price as of 16 February, 4.40 pm, is around ₹37,000. The company has managed to maintain a great performance record over the years, which is a key factor behind the price.
3. Page Industries
This is another stock that comes with a price tag of around ₹38,000 at press time. The product that this company produces can’t be more different, though. Page specializes in innerwear, socks, and loungewear. The sales and other performance indicators are key reasons for the inordinately high stock price associated with this brand.
You will be able to easily see Page Industries’ share price on NSE. Studying the market trend reveals that the price might even go a lot higher, but make sure you do your own research.
4. Shree Cement
The Shree cement share price puts this cement brand in the league of the top 5 most expensive Indian companies to invest in. The share price as of 16 February 2023, 4.43, is around ₹24,890.35.
The company has been in the market since 1979, so it is a time-tested brand. That may be a key factor behind its steep price.
5. 3M India
3M India is a popular production company. It is the Indian flagship company of 3M USA. 3M, US—essentially a diversified technology and science company. It focuses on safety transportation, electronics, and healthcare, among other things. Its versatility is a key contributor to its price tag. The brand’s performance is great, which adds to the market value. The price of 3M shares at press time is ₹22,301.
The criteria used to evaluate expensive shares in India
In the past few years, investors have encountered difficulties selecting expensive shares in the Indian market. But, now, thanks to technology and the internet, investors can use their access to real-time data—often for free—to evaluate their options.
While evaluating costly shares in India, it may help to focus on a few things. First, look at face value of the brand. Next, evaluate the market position, financials, competition, and management of the company. Of course, you also should check its profitability and past returns. Finally, you could look at asset utilization.
The bottom line, as always, is careful consideration and due diligence.
Investing in expensive shares: Risks and considerations
Investing in some expensive shares might be a safe bet, but you still need to consider a few risks. First, check the current market situation. There are always times when even a perfectly good share can nosedive. Looking up the latest news can alert you to any upcoming risks.
Also, rules concerning investments change all the time. So, next, you could look at the legality and taxation-related aspects. This will help you avoid any unnecessary rude shocks at the end of the financial year.
Finally, look into the past and present performance records before investing in expensive shares. There are often signs of many of the risks involved in investing. You could also learn to use a few basic research tools by reading through our blog. Some technical analysis and some fundamental analysis can take you a long way.
What risks are associated with investing in expensive shares?
Investing in expensive shares poses risks of overvaluation, limited diversification, volatile swings, liquidity challenges, market sentiment impact, and potential opportunity costs. Thorough research is crucial.
Are these shares suitable for long-term investment?
Investing in expensive shares for the long term depends on the company’s fundamentals, growth potential, and your risk tolerance. High-quality companies with solid growth prospects can be viable long-term investments, but thorough research is essential.
Do higher share prices indicate better company performance?
Higher share prices don’t necessarily indicate better company performance. Share prices can be influenced by various factors, including market sentiment, speculation, and demand. Assess a company’s financials, growth prospects, and overall health to gauge its performance accurately.
What’s the process for purchasing these shares through traditional stock exchanges?
Select broker, open accounts, research stocks, place order, execute trade, pay for shares, receive confirmation, see shares in Demat account. Understand fees and order types.