Top 5 Most Expensive Shares In India

Thousands of companies are listed in the Indian stock market. The NSE currently has 2,012 listed companies, while the BSE has 5,248, as of January 2022. There can be various factors that affect the prices at which shares of different companies are bought and sold, including their brand value, performance, and other factors.

There are some companies on the Indian Stock Market whose shares are among the most expensive. These companies are among the most popular stocks in India. It may not always be the case that companies enjoy such high prices because of their Brand Name and Strong Fundamentals.

Let's take a look at the Top Five Most Expensive Stocks in India to understand why they command such high prices.

1. MRF

In India, MRF shares are the most expensive at Rs 85,125 per share on BSE and Rs 84,356 on NSE as of September 6, 2022. MRF's full name is Madras Rubber Factory. Shares of the company closed at Rs.11 per share on April 27, 1993, when it was first listed.

Why is MRF's share price high?

The reason MRF is the most expensive share in India is not only that it is a fundamentally strong company, but also that it has not split its shares since it went public.

Because of MRF's top-notch quality and durability, its share price is also so expensive due to its brand value.

With a P/E ratio of 57.69, MRF is a bit on the expensive side compared to the industry average of 27.02, which indicates that MRF shares are among the top three among its peers. Moreover, the company has a healthy cash flow and virtually no debt.

1. Page Industries

In 1995, Page Industries was incorporated in India to bring the innerwear brand Jockey to the country. Jockey and Speedo are currently the two primary brands owned by the company. The share price of Page Industries is the second most expensive in India. According to market data, Page Industries' shares were worth Rs. 49,786 as of September 5, 2022.

Monopoly over Brand Jockey

Jockey International USA products are exclusively manufactured, marketed, and distributed in India by Page Industries under the brand name Jockey.

In addition to India, Page Industries sells Jockey products in Sri Lanka, Bangladesh, Nepal, the UAE, Oman, and Qatar.

It is a major reason why Page Industries is among the most valuable companies in India that Jockey has a pan-India presence and enjoys a monopoly over Jockey products in several countries. The brand name jockey enjoys a good reputation for its quality and comfort products.

The Indian economy is growing rapidly, with its per capita income increasing, and its youth are brand savvy, so Jockey will continue to grow even in the future.

Strong Distribution Network

There are over 1,131 Exclusive Brand Outlets (EBO) in Page Industries across India, which plays a key role in this business. The Jockey brand is also available in more than 2,580 large format stores, such as Lifestyles and Pantaloons.

1. Honeywell Automation India Limited (HAIL)

A leading manufacturer and supplier of integrated automation products and software solutions, Honeywell Automation India Limited was established in 1984 and is widely demanded by various industries to ensure the safety and smooth operation of homes and businesses.

The company was first listed on the BSE in March 1993 for Rs. 211.50. As of September 5, 2022, it trades at Rs. 41,826 at the NSE, and at Rs. 41,990 at the BSE, making it the third most expensive stock in India.

Strengths

Clients all over the world benefit from the company's automation and combustion control products, sensing controls, and engineering services. Compared to its competitors, HAIL has access to some of the latest and cutting-edge technologies from its parent company Honeywell International Inc.

Through its diverse business segments, Honeywell Automation can provide its services to a diverse range of industries, such as Oil and Gas, Chemical/Petroleum, Airports, Transport, Defence, etc.

Financial Analysis of HAIL

During the past five years, the HAIL has delivered good profit growth of 19.13%. There was a decline of Rs. 3,290 Cr in revenue in 2020 to Rs. 2,948 Cr in March 2022, and a decrease in net profit from 491 Cr in 2020 to 339 Cr in March 2022.

From 19.30% in 2021 to 12.5% in March 2022, the ROE of the company has decreased. A significant improvement has been seen in the first quarter of 2022 as the net profit of the company increased from 73Cr in March 2022 to 102Cr in June 2022, and its earnings per share increased from 115.33 to 82.19.

1. 3M India

As a brand, 3M India isn't one that you are likely to be familiar with because it is mostly the brand behind other brands. It is a subsidiary of 3M USA. Consumer, Transportation & Electronics, Safety and Industrial, and Health Care are its four segments.

Polyester, vinyl, foil, and specialty industrial tapes, along with scotch filament and packaging tapes, are among the types of industrial and safety tapes available.

Products and solutions in the health segment include skin and wound care, infection prevention, and surgical devices.

Personal protection products, brand and asset protection products, border control products, and many more are offered by the transport and electronics segments, while Scotch brand tapes, adhesives, and packaging protection are offered to consumers.

Strengths

Over 60000 products in its portfolio enable 3M India to provide solutions in almost every industry thanks to its science-based technology and diverse products. This stock is recession-proof due to its diverse products in various industries and its strong fundamentals, which make it a recession-proof investment.

Financial Analysis of 3M India

In India, 3M India is the fourth most expensive share. Currently, 3M is virtually debt free and is trading at Rs. 23,340 per share, as of September 5, 2022. Over the past three years, 3M India has shown slow revenue growth of 4.38% with a PE of 81.4.

With a current ratio of 3.12, the company is in a solid liquidity position with a healthy interest coverage ratio of 121.

1. Shree Cements

A major player in the cement industry in India is Shree Cements. In terms of market capitalization, it ranks third behind Ultratech cement and Ambuja.

Strengths

The Shree Cement Company is one of the leading cement manufacturers in North India with successful operations in Haryana, Punjab, Himachal Pradesh, J&K, and elsewhere. Shree Cement has also diversified its business in the power sector mainly with Shree Power and Shree Mega Power.

Financial Analysis of Shree Cement

For the past three years, Shree Cement has maintained a profit growth of 4.81% and its debt has decreased by 8,256 Cr. Over the last five years, the company has maintained an effective average operating margin of 26.4%.

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