Stock price and stock valuation are two different concepts. The stock price provides for the current value or the company's market price and largely indicates the price agreed upon by the buyer and seller. In case there are more buyers for a particular scrip, its share price tends to move upwards and vice-versa.
But stock valuation is a broader concept and the intrinsic value gives the true picture of the company's actual worth. So, a stock trading at a price of Rs. 2000 per share may be undervalued when compared to its peers. Nonetheless, for retail investors it is not easy to take positions in highly priced stocks. Here are the 5 most highly priced stocks on the Indian stock exchange:
The tyre manufacturing company commands the highest share price of Rs. 68312 among all listed companies on the Indian bourses. The 52-week high for the stock has been Rs. 73500. The stock's all time high price is Rs. 81,426.
The stock's Market Cap- Rs. 28972 crore. The company is trading at a standalone P/E of 25.41, which is higher than the industry P/E of 21.33. The stock has never gone for a share split and has a face value of Rs. 10.
Even currently MRF is betted upon by analysts as a good long term investment owing to the many factors going in favour of it such as improvement in transportation post easing of lockdown curbs due to pent up demand, good earning numbers and probably lower threat of imports as restrictions imposed on Chinese imports.
Earlier around 2 years back, analysts even suggested the stock of MRF to scale to 6-digit figure of Rs. 1,00,000.
2. Honeywell Automation:
The company from the telecommunication equipment category commands the second highest price among all the listed Indian companies of Rs. 29891 (LTP). The stock's 52-week high price has been Rs. 39499.
Market cap of the provider of integrated automation and software solution is Rs. 26292 crore. And currently trades at a P/E of 55.74. As of June 2020, promoters hold 75% stake in the company.
ICICI Securities in its recent report of October has given a 'Hold' recommendation on the stock with a target price of Rs. 31400.
3. Shree Cements:
Shree Cements as per the last closing price of Rs. 22150 is the third priciest stock on the Indian exchanges. The company's m-cap is Rs. 79,919 crore.
Shree Cements is the leading producer of cement in the Northern India region and also is into power production and its marketing under the brand Shree Power and Shree Mega Power. ICICI Securities in its October 29, 2020 report has given a 'Buy' recommendation on the counter with a target price of Rs. 25800.
4. Page Industries:
The owner of brands like Jockey is the fourth most expensive stock on the Indian stock markets with the LTP at Rs. 21581 on the NSE. On November 10, 2010, the stock of Page Industries quoted at a bare Rs. 1351, taking the gains considering the last traded price i.e. in 10 years time to as much as 1500 percent almost.
The m-cap of the stock is 23980 crore and trades at a P/E of 124.73 which is higher than the industry P/E of 37.66. The stock's 52-week high is Rs. 26882 Amid the pandemic, the company posted a very week set of numbers for the quarter ended June 2020 with operating profit to interest coming in at the lowest.
5. 3M India:
Based on the latest stock prices, 3M India- the diversified company is the fifth most priciest stock and commands a price of Rs. 20183. The large cap company's m-cap is Rs. 22717 crore.
ICICI Securities in its report had been bullish on the counter as it expects it to set up new units for manufacturing mobile components. Further there will be increased demand for industrial consumables sold by the company including safety markers, face masks, hand gloves and sanitizers.
Note the above ranking in price terms is done as per the last traded price that these stocks command as on November 9, 2020.