Last Updated on Aug 28, 2024 by Anjali Chourasiya
Here’s a mind-blowing fact for you – Berkshire Hathaway is the most expensive share in the world, trading at ~$691,350 per share as of 27th April 2024. Have you ever wondered which is the most expensive stock in India? In this article, let’s look at the top 10 most expensive stocks in India, why you should invest in them, and things to remember before investing in them. Let’s dive in.
Table of Contents
Top 10 Most Expensive Stocks in India – Updated August 2024
| Name | Sub-Sector | Market Cap (Rs. in cr.) | Close Price (Rs.) | PE Ratio | 5Y Avg Return on Investment (%) | Debt to Equity (%) | Fundamental Score |
| Honeywell Automation India Ltd | Electronic Equipments | 46,280.29 | 52,344.25 | 92.30 | 15.92 | 1.65 | 8.15 |
| Page Industries Ltd | Apparel & Accessories | 46,320.20 | 41,528.35 | 81.38 | 38.21 | 11.58 | 7.50 |
| 3M India Ltd | Stationery | 40,408.26 | 35,870.40 | 69.26 | 18.63 | 0.85 | 7.31 |
| Bosch Ltd | Auto Parts | 95,264.31 | 32,299.95 | 38.24 | 11.54 | 0.33 | 3.80 |
| Abbott India Ltd | Pharmaceuticals | 63,190.11 | 29,737.50 | 52.60 | 27.53 | 2.25 | 7.45 |
| Shree Cement Ltd | Cement | 89,527.88 | 24,813.20 | 37.37 | 11.50 | 7.98 | 4.25 |
| Procter & Gamble Hygiene and Health Care Ltd | FMCG – Personal Products | 55,201.59 | 17,005.65 | 81.40 | 65.58 | 0.43 | 3.89 |
| ZF Commercial Vehicle Control Systems India Ltd | Auto Parts | 29,122.54 | 15,353.85 | 71.65 | 9.75 | 0.00 | 2.93 |
| Dixon Technologies (India) Ltd | Home Electronics & Appliances | 79,149.16 | 13,227.55 | 215.23 | 18.84 | 34.35 | 6.00 |
| Maruti Suzuki India Ltd | Four Wheelers | 392,905.75 | 12,496.90 | 29.13 | 10.91 | 0.14 | 7.70 |
Note: The information is from the date 27th August 2024 and is filtered out using Tickertape Stock Screener. Following are the filters used to get the list of the top 10 most expensive stocks in India among 1000s of stocks available.
- Stock Universe: Nifty500
- Close Price: Set to High
🚀 Pro Tip: Utilise Tickertape’s Market Mood Index to gauge market sentiment and make informed investment decisions based on real-time market data and trends.
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Before diving in, let’s understand what smallcase is.
smallcases are modern investment products that help investors build low-cost, long-term & diversified portfolios with ease. A smallcase is a basket or portfolio of stocks/ETFs representing an idea – an objective, theme, or strategy. They are created and managed by SEBI-registered experts.
Among 500+ smallcases, here’s a smallcase that is focused on top stocks:
Disclosure for Top 250 Stocks
Disclosure for MI India Top 10
Note: These smallcases are mentioned only for educational purposes and are not meant to be recommendatory. Investors must conduct their own research and consult a financial expert before making any investment decisions.
Details of the Costliest Shares in India
Honeywell Automation India Ltd
Honeywell Automation India Ltd, established in 1984, is a subsidiary of Honeywell International, providing automation and control solutions. The company specializes in manufacturing electronic equipment, including environmental and combustion controls, and offers services in automation, energy efficiency, and smart building solutions.
The company has a market capitalisation of Rs. 46,280.29 cr., with a closing price of Rs. 52,344.25. Honeywell Automation India Ltd has a PE ratio of 92.30, a 5-yr average return on investment of 15.92%, a debt-to-equity ratio of 1.65%, and a fundamental score of 8.15.
Page Industries Ltd
Founded in 1994, Page Industries Ltd is the exclusive licensee of Jockey International in India and is a leading player in the innerwear and leisurewear segments. The company also holds licenses for Speedo swimwear and accessories in India.
The company has a market capitalisation of Rs. 46,320.20 cr., with a closing price of Rs. 41,528.35. Page Industries Ltd has a PE ratio of 81.38, a 5-yr average return on investment of 38.21%, a debt-to-equity ratio of 11.58%, and a fundamental score of 7.50.
3M India Ltd
3M India Ltd, a subsidiary of 3M Company USA, was incorporated in 1987 and operates in various segments, including industrial, healthcare, and consumer products. The company is well-known for its innovation in products like adhesives, abrasives, and personal protective equipment.
The company has a market capitalisation of Rs. 40,408.26 cr., with a closing price of Rs. 35,870.40. 3M India Ltd has a PE ratio of 69.26, a 5-yr average return on investment of 18.63%, a debt-to-equity ratio of 0.85%, and a fundamental score of 7.31.
Bosch Ltd
Bosch Ltd, established in 1951, is a leading supplier of technology and services in the areas of automotive and industrial technology, consumer goods, and building technology. The company is known for its advanced automotive components and aftermarket services.
The company has a market capitalisation of Rs. 95,264.31 cr., with a closing price of Rs. 32,299.95. Bosch Ltd has a PE ratio of 38.24, a 5-yr average return on investment of 11.54%, a debt-to-equity ratio of 0.33%, and a fundamental score of 3.80.
Abbott India Ltd
Abbott India Ltd, a subsidiary of the global healthcare giant Abbott Laboratories, was established in 1944. The company offers a broad range of products across therapeutic areas such as women’s health, gastroenterology, and metabolic disorders.
The company has a market capitalisation of Rs. 63,190.11 cr., with a closing price of Rs. 29,737.50. Abbott India Ltd has a PE ratio of 52.60, a 5-yr average return on investment of 27.53%, a debt-to-equity ratio of 2.25%, and a fundamental score of 7.45.
Shree Cement Ltd
Founded in 1979, Shree Cement Ltd is one of India’s leading cement manufacturers. The company is known for its efficient and sustainable cement production processes and operates multiple plants across India.
The company has a market capitalisation of Rs. 89,527.88 cr., with a closing price of Rs. 24,813.20. Shree Cement Ltd has a PE ratio of 37.37, a 5-yr average return on investment of 11.50%, a debt-to-equity ratio of 7.98%, and a fundamental score of 4.25.
Procter & Gamble Hygiene and Health Care Ltd
Procter & Gamble Hygiene and Health Care Ltd, a subsidiary of Procter & Gamble, was established in 1964. The company operates in the personal products segment, offering well-known brands such as Whisper and Vicks in India.
The company has a market capitalisation of Rs. 55,201.59 cr., with a closing price of Rs. 17,005.65. Procter & Gamble Hygiene and Health Care Ltd has a PE ratio of 81.40, a 5-yr average return on investment of 65.58%, a debt-to-equity ratio of 0.43%, and a fundamental score of 3.89.
ZF Commercial Vehicle Control Systems India Ltd
ZF Commercial Vehicle Control Systems India Ltd, formerly known as WABCO India Ltd, is a subsidiary of ZF Friedrichshafen AG. The company specializes in braking systems and other automotive control systems for commercial vehicles.
The company has a market capitalisation of Rs. 29,122.54 cr., with a closing price of Rs. 15,353.85. ZF Commercial Vehicle Control Systems India Ltd has a PE ratio of 71.65, a 5-yr average return on investment of 9.75%, a debt-to-equity ratio of 0.00%, and a fundamental score of 2.93.
Dixon Technologies (India) Ltd
Dixon Technologies (India) Ltd, founded in 1993, is a leading electronics manufacturer in India, providing design-focused solutions in consumer electronics, home appliances, lighting, and mobile phones. The company is a key player in the electronics manufacturing services (EMS) space.
The company has a market capitalisation of Rs. 79,149.16 cr., with a closing price of Rs. 13,227.55. Dixon Technologies (India) Ltd has a PE ratio of 215.23, a 5-yr average return on investment of 18.84%, a debt-to-equity ratio of 34.35%, and a fundamental score of 6.00.
Maruti Suzuki India Ltd
Maruti Suzuki India Ltd, founded in 1981, is the largest passenger car manufacturer in India. The company offers a wide range of cars across different segments, from entry-level hatchbacks to premium sedans and SUVs.
The company has a market capitalisation of Rs. 3,92,905.75 cr., with a closing price of Rs. 12,496.90. Maruti Suzuki India Ltd has a PE ratio of 29.13, a 5-yr average return on investment of 10.91%, a debt-to-equity ratio of 0.14%, and a fundamental score of 7.70.
Note: Fundamental Score is a smallcase proprietary score between 1 and 10 assigned to stocks listed on NSE. It is calculated by considering factors like valuation, profitability, market share growth, financial health and earnings growth of the company. The score helps rank the stock over other stocks in the respective sector. The higher the score, the better the company.
Why Invest in the Most Expensive Stocks?
Investing in expensive stocks in India can provide opportunities for long-term growth and the potential for high returns. Here are some advantages of investing in the most expensive stocks in India –
- Expensive stocks are less vulnerable to market risks due to the few investors holding them, most of whom are long-term institutional investors.
- Investing in expensive stocks encourages deep research and analysis.
- Expensive stocks can make investors more patient and mindful in their long-term investment strategy. Having a limited number of shares in a high-value stock can make an investor more likely to hold on to it for the long term, as opposed to selling a portion of it for short-term gain.
In contrast, having a larger number of shares in a cheaper stock may make it easier for an investor to sell a portion of it for cash to invest in other opportunities.
- Investing in expensive stocks can provide a hedge against inflation and a potential source of passive income through dividends.
However, it’s important to note that investing in expensive stocks also carries a higher level of risk, so it’s important to do your due diligence and consult a financial advisor before making any investment decisions.
How to Identify the Most Expensive Stocks?
Identifying the most expensive stocks involves evaluating several key factors that reflect a stock’s price and its underlying value. Here’s what you might consider:
- High Market capitalisation: You may want to look at companies with a large market capitalisation. These companies are typically industry leaders and their stocks often trade at higher prices due to their established market presence and financial strength.
- Price-to-Earnings (P/E) Ratio: The P/E ratio can be a critical indicator of whether a stock is expensive. A high P/E ratio might suggest that a stock is priced higher relative to its earnings, often reflecting investor confidence in the company’s future growth prospects.
- Share Price: The absolute price of a stock is also a straightforward indicator. Stocks trading at high prices per share, such as those in blue-chip companies, can be considered expensive. However, a high share price alone doesn’t always mean the stock is overvalued; it might reflect strong fundamentals.
- Premium Valuations: Stocks that consistently trade at premium valuations—higher than industry averages—may be considered expensive. These valuations could be due to factors like strong brand equity, market dominance, or robust financial performance.
- Low Dividend Yield: Expensive stocks might have a lower dividend yield, as their high price reduces the yield percentage. If a stock’s dividend yield is significantly lower than the market average, it could be an indicator of a high stock price.
- Growth Potential: Sometimes, stocks are expensive because investors expect substantial future growth. Companies in rapidly growing industries like technology or biotech often have high stock prices that reflect anticipated future earnings.
How to Invest in the Highest Priced Shares in India?
To invest in the highest priced shares in India, it is essential to follow a strategic approach:
- Evaluate the company and the team: Begin by scrutinising the track record and leadership capabilities of the company’s management team. A strong and capable leadership team is often indicative of a well-managed and successful company.
- Financial analysis: Conduct a thorough financial analysis to determine whether the stock is overvalued or undervalued. Compare key financial metrics such as price-to-earnings ratio, cash flow, and other relevant indicators. Assess the stock’s volatility and potential downside risk to gauge its overall value accurately.
- Consider long-term viability: While the highest-priced shares may be suitable for long-term investments, it’s crucial to align your investment strategy with your budget, financial plan, and risk tolerance. Assess whether the stock fits within your long-term investment goals.
- Prioritise budget and risk assessment: Before investing in India’s most expensive stocks, prioritise a thorough budget analysis. Ensure that the investment aligns with your financial capabilities and goals. Simultaneously, conduct a comprehensive risk assessment to understand and manage potential downsides.
- Diversification: Consider the principle of diversification to spread risk across different assets. While investing in high-priced stocks, it’s crucial to maintain a diversified portfolio to mitigate potential risks associated with individual stocks.
Remember that investing in the highest-priced shares requires careful consideration and due diligence. By thoroughly analysing the financial health of the company, assessing management capabilities, and aligning your investment strategy with your financial goals, you can make informed decisions to navigate the dynamic landscape of the stock market in India.
Challenges of Investing in the Most Expensive Shares in India
Investing in the most expensive shares in India comes with its own set of challenges, and it’s crucial to approach such investments with caution:
- Independent research: The mere fact that a share is the most expensive does not necessarily make it a suitable investment. Prioritise independent research to thoroughly understand the company and its industry. Rely on comprehensive analysis rather than solely on the share’s price.
- Assess fund structure: Analyse your fund structure and evaluate whether it aligns with the investment in the costliest share in India. Ensure that your investment strategy complements the overall structure of your investment portfolio.
- Budgetary considerations: While high returns are desirable, it’s crucial not to hastily overspend your budget. Establish a fixed amount that you can comfortably invest in valuable stocks in India without jeopardising your financial stability.
- Differentiate overvaluation and undervaluation: Differentiate between overvalued and undervalued stocks by conducting a comprehensive analysis of earnings, cash flow, and other financial metrics. Additionally, factor in the stock’s volatility to make a well-informed decision before investing in the most expensive share in India.
- Diversification for risk mitigation: Instead of concentrating all investments on a single high-priced share, consider allocating your money to add diversification to your portfolio. Diversification helps mitigate risks associated with individual stocks and ensures a more balanced investment approach.
- Clarify investment goals and risk appetite: Before investing in the most expensive shares, investors should be clear about their investment goals and risk appetite. Aligning investments with personal financial objectives ensures a more strategic and purposeful approach to the stock market.
Advantages of Investing in the Costliest Shares in India
Here are a few advantages of investing in the most expensive shares in India.
- High-priced stocks in India are often linked to financially stable and well-managed companies, instilling confidence in long-term value generation.
- These stocks, with larger market capitalisations, typically exhibit lower volatility, offering a more stable investment environment compared to lower-priced or speculative stocks.
- The most expensive shares in India belong to companies that regularly pay dividends, providing investors with a consistent cash flow, which is particularly attractive in low-interest-rate scenarios.
- Expensive stocks often represent companies with solid growth prospects, offering investors an opportunity to participate in their growth trajectory and benefit from potential capital appreciation over time.
Things to Remember Before Investing in the Most Expensive Stocks
An expensive stock doesn’t necessarily mean it is a good investment. Here are some important points to remember before investing in the most expensive stocks in India.
- Perform fundamental analysis – check the company’s financial statement to determine its financial health. Research the industry and its trends to see if the company is well-positioned to benefit from them.
- Look at the company’s management team and track record to gauge their ability to lead the company.
- Compare the stock’s price to its earnings, cash flow, and other financial metrics to determine if it is overvalued or undervalued. Consider the stock’s volatility and the potential for downside risk.
- Although expensive stocks are considered good for long-term investments, make sure to invest in them based on your budget, financial plan, and risk appetite. Hence, consider your budget and risk tolerance before investing in pricey stocks.
Who Can Invest in the Most Expensive Stocks?
Investing in the most expensive stocks might be suitable for:
- Long-Term Investors: Individuals with a long-term investment horizon might find expensive stocks appealing, especially if they believe in the company’s sustained growth and market leadership. Over time, these stocks may provide capital appreciation and potential dividend income.
- High-Net-Worth Individuals: Investors with substantial capital may choose expensive stocks as part of their portfolio to gain exposure to industry-leading companies with strong financials and growth potential.
- Risk-Tolerant Investors: Those who are comfortable with market volatility might invest in expensive stocks, recognizing that the high price often comes with high expectations for performance, which can lead to significant price swings.
- Institutional Investors: Large funds and institutions often invest in expensive stocks due to their stability, liquidity, and potential for long-term growth. These investors might prioritize the security and steady returns that established, expensive stocks can offer.
- Investors Seeking Quality: If you prioritize quality over quantity, you might be drawn to expensive stocks. These stocks often represent companies with strong competitive advantages, solid financials, and the ability to generate consistent earnings.
Investing in expensive stocks requires careful consideration of the stock’s fundamentals and your investment objectives. While they can offer stability and potential growth, it’s important to ensure they fit within your overall portfolio strategy.
Conclusion
Investing in the most expensive stocks in India has benefits as well as limitations. Hence, before making any investment decision, it is always beneficial to consult a financial advisor or do thorough research. Tickertape is your one-stop destination for researching, analysing, and investing in stocks. The Asset Pages is the handy ‘Investment Checklist’, which helps make quick analysis on the viability of an investment, and recently, we have introduced the ‘Scorecard’, which makes the checklist quantitative. Learn more about it here, or start exploring the stock pages right away!
FAQs About the Most Expensive Stocks in the Indian Stock Market
What is the highest share price in India?
The most expensive share in India is Honeywell Automation India Ltd. It’s share price is Rs. 52,344.25 as of 27th August 2024.
Should you buy expensive stocks?
Whether to buy expensive stocks depends on various factors, and the decision should align with your investment goals, risk tolerance, and financial strategy. It is worthwhile to seek advice from financial professionals and conduct thorough research before making investment decisions.
Why MRF Ltd share price is so high?
One potential reason of high price of MRF Ltd’s share may be because investors view the company positively. Think of it like two smartphones with similar features and specifications. One brand consistently has a higher price than the other. In the stock market, investors look at factors like a company’s financial health and future growth. MRF Ltd’s high share price suggests that many investors think the company is strong and has good potential, making them willing to pay more for its shares.
Who should invest in the highest priced shares?
The decision to invest in an expensive stock is based on the investor’s goals, budget, risk tolerance, company’s profile, profitability and more such factors. Investors may consider investing in high price shares when there are expectations of a growth in the long term or when the stock is priced lower than its value. However, before deciding to invest, it’s important for investors to either research on their own or consult with a financial advisor.
Can highest priced stocks be profitable for investors?
Investing in the highest priced stocks can be profitable for investors, but it comes with certain considerations. The high price of a stock doesn’t guarantee profitability on its own. Investors need to assess various factors, such as the company’s financial health, growth prospects, and market conditions. It’s also important to align the investment with the financial goals.
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As an insatiable reader and learner, I’ve spent the last two years exploring the world of finance. With my creative mind and curious spirit, I love making complex finance topics easy and fun for everyone to understand. Join me on my journey as we navigate the world of finance together!
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