One would have thought to ignore buying the stock of MRF when it was Rs 15,000 as this was an expensive price to buy. The thought that an expensive stock may not deliver returns has been proven wrong by stocks like MRF. In any case here are the 5 most expensive stocks in India. Let us also take a look at whether they are worth buying in India.
MRF is today quoting at staggering levels of Rs 60,000, jumping so easily from Rs 15,000 in the last few years. The company has a very small equity base which tends to push the stock price higher, as the EPS swells. Despite the price being so high, MRF management has never split the stock which has a face value of Rs 10. Now, if one would think that Rs 60,000 is expensive for a share like MRF, the answer is "no". For the quarter ending Sept 30, 2016, the company reported an EPS of Rs 908. If you were to assume the company does an EPS of Rs 3,600 for the full year, the stock is trading at a p/e of just Rs 16.67, which is not a bad proposition at all. Check stock quote of MRF here
The shares of Rasoi Ltd are listed only on the BSE at a price of Rs 30,000. This makes it the second most priced and expensive stock in the country. The company has a very small equity capital and the floating stock is very low, which has propelled the stock to where it it today. The stock is extremely high priced at the current levels and declares a very small dividend. Avoid buying the stock
The manufacturers of "Bullet" bikes, Eicher is another very expensive stock in India. The shares are prices at Rs 25,000 and are no where near MRF, which is near Rs 60,000. Fundamentally however,, Eicher Motors is way more expensive in terms of p/e ratio then MRF. The stock is quoting at a p/e ratio of almost 40 times, as against MRF's 17 times. This makes MRF more attractive as compared to Eicher Motors. This is a stock that you should be buying only when prices dip.
The fourth most expensive stock in the list is Bosch at Rs 23,000. This company is into a whole range of products from mobility solutions, consumer goods, industrial technology, energy and building technology. The company had a bad quarter in December with an EPS of only Rs 70. We believe that the company can quickly move to an EPS of Rs 700 for FY 2017-18 as economic activity picks up steam. The stock would then be quoting at a p/e of just around 30. This would be slightly more expensive. Buy on dips would be the right strategy for this stock. Check stock quote of Bosch here
This is another stock that has a small equity and a very high price. This is obviously a company that is largely engaged in the manufacture of cement. The company reported an EPS of Rs 67 for the quarter ending December 31, 2017. If we annualize the EPS of Rs 250 and divide the current market price of Rs 17000, the stock is trading at a huge PE of 67 times. This stock is best avoided.
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