10 Most Expensive Stocks in India 2024

May 21, 2022 Trading 7 min read

When you start to invest, you will notice that shares in the Indian stock market vary greatly in price. Some shares have prices reaching 5 or even 6 digits, while others remain in single digits. While most shares on the National Stock Exchange (NSE) are priced below Rs. 1000, some exceed this threshold. Let’s look at some of the most expensive stocks in India, the advantages and disadvantages of investing in costly shares, and what investors should keep in mind before investing in these shares. 

Things To Keep in Mind When Investing in Costly Stocks

Investing in costly stocks can require a large amount of capital, therefore, thorough research is important when deciding which stocks to invest in. Some of the things to keep in mind are:

1. Research the company

Make sure to conduct thorough research on the company you wish to invest in. Understand the industry it is in and its business model. Research its past and present financial performance as well as growth prospects before you make investment decisions.

2. Assess your portfolio

Ensure your risk tolerance aligns with the shares you wish to invest in. A common misconception is the highest-priced shares are what you have to invest in. This is not true. Making sure the stock aligns with your investment goals and overall diversification strategy is more important.

3. Allocate a suitable budget

Set a fixed amount for investment in these stocks and try not to be hasty about exceeding this budget. While these stocks may provide good returns in the future, their high price also makes any potential loss that much more of a burden. 

4. Understand the stock’s value

Identifying undervalued and overvalued stocks is important when deciding your investment strategy. Financial metrics such as the price-to-earnings ratio (P/E) and cash flows can be useful when gauging future performance.

5. Maintain a long-term perspective

While volatile stocks may provide good short-term results, it is recommended to focus on the company’s fundamentals when evaluating its investment potential.

10 Most Expensive Stocks in India 2024

Company Name Market Cap (₹ in Crores) Share Price () PE Ratio
MRF 58,143 1,36,190.7 28.7
Honeywell Automation India 35,123 40,559.45 75.5
Page Industries 38,998 34,795.4 72.31
Shree Cement 95,732 26,354.3 42.61
3M India Ltd 34,107 30,269.1 62.44
Abbott India Ltd 57,974 26,714.45 50.61
Nestle India Ltd 2,52,927 2,553.95 84.35
Bosch Ltd 91,182 30,815.65 39.21
Procter & Gamble Hygiene and Health Care Ltd 52,263 16,395.7 69.15
Lakshmi Machine Works Ltd 17,482 17,387.65 43.51

Disclaimer: Please note that share prices and market capital values are subject to change and may vary based on market conditions. 

An Overview of the Most Expensive Stocks 

MRF

MRF, also known as Madras Rubber Factory, is a well-known Indian tire manufacturing company. It started in 1946 and offers a wide range of tires catering to different types of vehicles, from cars to trucks and agricultural equipment. In addition to catering to the domestic market, MRF has expanded internationally and exports to over 65 countries. It has a history of strong financial performance and a reputation for being a reliable investment option. It is one of the most expensive stocks in the Indian market.

Honeywell Automation India

Honeywell Automation India Limited is a renowned Indian automation and control solutions company. It is a subsidiary of Honeywell International Inc. and is reputed for its superior technology and expertise in the manufacturing sector. It started in 1984 and has a strong presence in many industries including oil and gas, power generation, manufacturing, and infrastructure. They are at the forefront of India’s industrial automation landscape.

Page Industries

Page Industries is an exclusive licensee of Jockey International Inc. and is reputed in India’s athleisure and apparel industry. It is known for manufacturing, distributing, and marketing the Jockey brand in India as well as countries like Sri Lanka, Nepal, Bangladesh, and the UAE. Their brand is built around comfort, quality, and innovation and has made Jockey a household name in India. It has a history of strong financial performance, and operational excellence, and is known for its strategic vision.

Shree Cement

Shree Cement is a prominent figure in the cement manufacturing industry in India and started in 1979. Distribution is one of its strengths. It has superior cement plants located around India, promoting distribution and accessibility. It houses a strong management team which has positioned it to be one of the leading investment choices in the Indian cement industry. 

3M India Ltd

3M India Ltd is a subsidiary of the multinational 3M conglomerate. It has established itself across various sectors in the Indian market including healthcare, safety and industrial, consumer, and transportation. Its commitment to quality and customer service has made it a trusted and reputable company for businesses and consumers alike.

Abbott India Ltd

Abbott India Ltd has made its name in the Indian pharmaceutical and healthcare industry since 1910. Its focus on quality has led to its strong reputation for delivering high-quality pharmaceuticals, nutritional products, and medical devices. It stays ahead of the market by introducing new products and technologies and upholding a high standard of ethics.

Nestle India Ltd

Nestle India Ltd has become a household name in the Indian consumer goods market with well-known brands like Maggi, Nescafe, and KitKat. It was established in 1959 and has products in various categories like food, beverages, and nutrition. 

Bosch Ltd

Bosch Limited is a subsidiary of the German multinational and has made a name for itself in the Indian automotive and industrial technology market. It was established in 1951 and has products spanning industries like automotive, consumer goods, energy, and many others. It is well-recognised in both domestic and international markets due to its commitment to quality, reliability, and customer value.

Procter & Gamble Hygiene and Health Care Ltd

One of the most well-known names in the industry of household and personal care products, it is a subsidiary of the multinational company Procter & Gamble. Its brands include Vicks, Gillette, Tide, and Olay, among others. It built its platform through its commitment to growth, delivering superior value to consumers, and making a positive impact on society.

Lakshmi Machine Works Ltd

Established in 1962, the company is a reputed manufacturer of textile machinery and CNC machine tools. Their growth over the years is a result of their technological prowess. The company serves both the domestic market and exports to the Asian and Oceanic markets.

Advantages of Investing in Expensive Stocks

Long-term growth potential: Highly priced stocks on the exchange tend to belong to good quality, reliable companies. This can translate to long-term growth potential and stability for investors.

Greater liquidity: These stocks can generate a lot of attention from investors, potentially leading to greater liquidity. This makes it easier for investors to buy and sell these stocks.

Lower volatility: These stocks tend to be more stable and therefore exhibit lower volatility. This can appeal to investors with a lower risk tolerance.

Diversification: Expensive stocks are spread across a wide range of industries and sectors. This offers diversification benefits to investors.

Dividend payments: Many expensive stocks are from dividend-paying companies, opening up the possibility of a steady income stream. 

Overall, it can be beneficial to invest in expensive stocks. However, make sure to conduct research before investing to ensure that the stocks match your risk profile and requirements.

Disadvantages of Investing in Expensive Stocks

Limited upside potential: Many expensive stocks already trade at a high price relative to their earnings and other financial indicators. This means that there is less potential for the price to increase further. 

High valuations: Expensive stocks usually have higher prices because investors expect future growth. However, if they do not perform as well as expected it could lead to a large price drop due to a drop in investor confidence.

High capital requirements: The high price of these stocks means that investors need more capital to be able to invest in them. This can discourage smaller investors who have access to limited capital.

Timing risks: Buying expensive stocks when they are at their peak prices can lead to losses for investors if the price falls shortly after purchase.

Overall, it is important to consider both the advantages and disadvantages of investing in expensive stocks before you make important investment decisions. 

Conclusion 

Expensive stocks can offer significant growth opportunities and investment stability, especially when they belong to fundamentally strong companies. However, you need to consider the risks and potential downsides of investing in these stocks. These include high valuations, capital requirements, and timing risks. 

Make sure to keep your risk appetite and investment objectives in mind when choosing which stocks to invest in and conduct thorough research in advance. It is advisable to consult a financial professional when making important investment decisions. 

Disclaimer: This article is for information purposes only and should not be considered as stock recommendation or advice to buy or sell shares of any company. Investing in the stock market can be risky. It is therefore advisable to research well or consult an investment advisor before investing in shares, derivatives or any other such financial instruments traded on the exchanges.

FAQs

Who should invest in expensive stocks?

Expensive stocks may be suitable for experienced and institutional investors with a longer-term investment horizon. However, this differs based on individual goals and portfolios. It’s important to conduct thorough research and consider seeking advice from a financial advisor before making any investment decisions.

What makes a stock expensive in India?

Some of the common factors that cause the stock price to increase are a higher growth potential, consistent earnings, and a competitive edge tend to have higher-priced stocks. Stocks are considered expensive based on their higher price relative to earnings and price metrics. Overall, the price will depend on market sentiment.

How can I invest in expensive stocks?

You can start by opening a brokerage account with a trusted and established platform. Once you identify which stocks you want to invest in, make sure to research them well beforehand. This involves analysing the company’s financial performance, growth potential, and industry. Make sure you have the capital required and have considered all the associated risks. Consulting a reliable financial advisor is also recommended.

Are expensive stocks worth investing in?

Each stock’s suitability for investing will depend on the individual’s goals and risk tolerance. Investors can assess individual stocks by looking at the company’s financial performance and growth prospects relative to its industry. Whether a stock is worth investing in will depend on how strong the company’s fundamentals are. Financial advisors or conducting thorough research can help in making more informed decisions. 

What are the risks of investing in expensive stocks?

Since expensive stocks already trade at a high price, there is limited potential for the price to increase further. Also, during market downturns, expensive stocks can experience steeper price falls compared to lower-priced stocks. Other cons include higher capital requirements to invest in expensive stocks.


" " " "

Related

Open Demat Account With TradeSmart

Lowest Brokerage Ever Trade @15 Per Order
Download TradeSmart App Now

Scan below QR Code
to download App