NEW DELHI: As MRF shares crossed the Rs 1 lakh benchmark on Tuesday, let's take a look at other stocks on Dalal Street with the highest price tags. Market data shows that there are at least 15 other securities trading at prices above Rs 10,000.
Shares of MNC Honeywell Automation India are second on the list with a price tag going above Rs 41,000. Top stock picker Saurabh Mukherjea-owned Page Industries is the third most highly-priced stock and was trading near Rs 38,000.
Other stocks priced above Rs 20,000 are 3M India, Shree Cement, Nestle India, and Abbott India. Those selling between Rs 10,000 and Rs 20,000 are Bosch, Procter & Gamble Hygiene, Lakshmi Machine Works, Kama Holdings, Polson, Tasty Bite Eatables, The Yamuna Syndicate, ZF Commercial Vehicle Control Systems, and Bombay Oxygen Investments.
Out of them, 3 stocks - Polson, The Yamuna Syndicate, and Bombay Oxygen Investments - have market capitalisation below Rs 500 crore.
In India, fractional trading isn't permitted which means that the minimum quantity that you have to buy is one stock. In the US, where fractional shares can be bought and sold, Berkshire Hathaway is one example of a stock trading in 6 digits.
Many new investors often confuse the price of a stock with that of its value.
"The stock price should not be the only criterion to decide whether the stock is expensive or is available at a throw-away price. Embedded value in that counter is an important factor that helps one to make an informed decision. Most of the time people neglect this rule and go for the stocks that are available cheap," Apurva Sheth, Head of Market Perspectives & Research, SAMCO Securities, told ETMarkets.
Analysts point out that the value of a stock depends on several factors like market capitalization, price-to-earnings (P/E) ratio, earnings, and growth prospects. Market capitalization considers a company's total value by multiplying its stock price by outstanding shares. The P/E ratio compares a company's share price to its per-share earnings, indicating its expected growth or lack thereof.
A stock with a high price may be justified by strong earnings and future growth prospects, said Sonam Srivastava of Wright Research.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
