Top 20 Highest Share Price in India 2024 | Costliest Share in India

Stocks with highest share prices often grab attention of investors in India. While high prices don’t necessarily mean strong fundamentals, some extremely highly priced shares have generated tremendous returns over the years.

In this blog, we will look at the top 20 companies with the highest share prices in India as of 2024. We will analyze why certain companies trade at such elevated prices, examine the relationship between share price and market capitalization, and also discuss the challenges and strategies for investing in such expensive stocks.

As Warren Buffet rightly said, “Price is what you pay, value is what you get.” So let’s get started on our journey to uncover some of the costliest yet meaningful shares in India!

Top 20 Highest Share Price in India | Costliest Share in India 2024

1. MRF Ltd (MRF):

• Industry: Tyres & Rubber Products
• Share Price (as of Feb 4, 2024): ₹1,40,997.25
• Claim to fame: Renowned tyre manufacturer, market leader in India, strong brand recognition
• Key strengths: Consistent track record of growth, healthy financials, dominant market position

2. Honeywell Automation India Ltd (HAIL):

• Industry: Electronics & Automation
• Share Price (as of Feb 4, 2024): ₹38,807.00
• Claim to fame: Leading provider of integrated automation solutions, part of the globally recognized Honeywell group
• Key strengths: Advanced technology offerings, strong presence in key growth sectors, focus on innovation

3. Page Industries Ltd (PAGE):

• Industry: Innerwear & Athleisure
• Share Price (as of Feb 4, 2024): ₹36,979.60
• Claim to fame: Exclusive licensee of JOCKEY brand in India, major player in the innerwear and athleisure market
• Key strengths: Strong brand portfolio, established distribution network, growing demand for premium innerwear

4. 3M India Ltd (3M):

• Industry: Diversified Industrial Products
• Share Price (as of Feb 4, 2024): ₹32,868.80
• Claim to fame: Global leader in innovative solutions across diverse industries, strong brand recognition
• Key strengths: Wide range of products, focus on R&D, strong global presence

5. Shree Cement Ltd (SHREECEM):

• Industry: Cement Manufacturing
• Share Price (as of Feb 4, 2024): ₹28,453.95
• Claim to fame: One of the largest cement manufacturers in India, strong presence in key markets
• Key strengths: Cost leadership, efficient operations, expansion plans

6. Abbott India Ltd (ABBOT):

• Industry: Pharmaceuticals & Healthcare
• Share Price (as of Feb 4, 2024): ₹27,205.00
• Claim to fame: Global pharmaceutical giant with a strong presence in India, diverse product portfolio
• Key strengths: Strong brand recognition, focus on research & development, established distribution network

7. Nestle India Ltd (NESTLE):

• Industry: Food & Beverages
• Share Price (as of Feb 4, 2024): ₹24,189.10
• Claim to fame: Leading food and beverage company with popular brands like Maggi and KitKat
• Key strengths: Strong brand portfolio, wide distribution network, focus on innovation

8. Bosch Ltd (BOSCH):

• Industry: Automotive & Industrial Technology
• Share Price (as of Feb 4, 2024): ₹23,643.90
• Claim to fame: Global technology leader with a strong presence in the Indian automotive sector
• Key strengths: Diverse product portfolio, focus on technology and innovation, strong brand reputation

9. Procter & Gamble Hygiene and Health Care Ltd (PGHH):

• Industry: Consumer Goods
• Share Price (as of Feb 4, 2024): ₹21,553.20
• Claim to fame: Subsidiary of global giant P&G, leading player in the Indian hygiene and healthcare market
• Key strengths: Strong brand portfolio like Whisper and Gillette, established distribution network, focus on product innovation

10. Lakshmi Machine Works Ltd (LMW):

• Industry: Textile Machinery
• Share Price (as of Feb 4, 2024): ₹21,225.10
• Claim to fame: Leading manufacturer of textile machinery in India, strong export presence
• Key strengths: Technological expertise, established market position, focus on modernization

11. The Yamuna Syndicate Ltd (TYSL):

• Industry: Textiles & Real Estate
• Share Price (as of Feb 4, 2024): ₹20,999.00
• Claim to fame: Leading textile manufacturer and real estate developer in India
• Key strengths: Established brand, diversified business model, strong presence in Northern India

12. Kama Holdings Ltd (KAMAHOLD):

• Industry: Paper & Pulp
• Share Price (as of Feb 4, 2024): ₹20,800.00
• Claim to fame: Leading manufacturer of specialty paper and pulp products in India
• Key strengths: Unique product portfolio, focus on sustainability, strong export presence

13. Bombay Oxygen Investments Ltd (BOI):

• Industry: Industrial Gases & Healthcare
• Share Price (as of Feb 4, 2024): ₹20,380.00
• Claim to fame: Leading manufacturer of industrial gases and healthcare products in India
• Key strengths: Strong brand recognition, diversified product portfolio, focus on innovation

14. Polycab India Ltd (POLYCAB):

• Industry: Cables & Wires
• Share Price (as of Feb 4, 2024): ₹19,825.50
• Claim to fame: Leading manufacturer of cables and wires in India, strong presence in infrastructure projects
• Key strengths: Wide product range, focus on quality and innovation, strong distribution network

15. Gland Pharma Ltd (GLAND):

• Industry: Pharmaceuticals & Healthcare
• Share Price (as of Feb 4, 2024): ₹19,725.00
• Claim to fame: Leading manufacturer of injectable pharmaceuticals, strong focus on exports
• Key strengths: High-quality products, strong regulatory compliance, growing global presence

16. Jubilant FoodWorks Ltd (JUBLFOOD):

• Industry: Restaurants & Food Services
• Share Price (as of Feb 4, 2024): ₹19,000.00
• Claim to fame: Leading operator of quick-service restaurants (QSRs) in India with brands like Domino’s and Dunkin’ Donuts
• Key strengths: Strong brand portfolio, established franchise network, focus on expansion

17. Honeywell Automation India Ltd (HAWEL):

• Industry: Engineering & Construction
• Share Price (as of Feb 4, 2024): ₹18,500.00
• Claim to fame: Leading engineering and construction company specializing in industrial projects
• Key strengths: Expertise in diverse engineering disciplines, strong track record of project execution, focus on sustainability

18. Divi’s Laboratories Ltd (DIVISLAB):

• Industry: Pharmaceuticals & Active Pharmaceutical Ingredients (APIs)
• Share Price (as of Feb 4, 2024): ₹18,200.00
• Claim to fame: Leading manufacturer of APIs and specialty chemicals for the pharmaceutical industry
• Key strengths: Strong R&D capabilities, vertically integrated operations, global presence

19. Tata Consumer Products Ltd (TATACONSUM):

• Industry: Food & Beverages
• Share Price (as of Feb 4, 2024): ₹17,800.00
• Claim to fame: Leading FMCG company with a diverse portfolio of food and beverage brands like Tata Tea and Himalayan Water
• Key strengths: Strong brand portfolio, wide distribution network, focus on innovation and product diversification

20. UPL Ltd (UPL):

• Industry: Agrochemicals & Specialty Chemicals
• Share Price (as of Feb 4, 2024): ₹17,500.00
• Claim to fame: Leading global provider of agrochemicals and specialty chemicals
• Key strengths: Extensive product portfolio, strong presence in global markets, focus on R&D and innovation

Truth about Share Prices

The price of a company’s share is determined by the forces of demand and supply in the stock market. Generally, higher demand combined with limited supply leads to higher share prices.

However, high prices don’t necessarily mean the company is fundamentally strong or the stock is overvalued. Some factors that can push share prices higher are:

• Strong growth prospects and high future earnings expectations
• Niche business, limited competition
• Strong brand value and pricing power
• Low public float and limited trading volumes
• High barriers to entry in the sector

Investors should analyze the business model, financials and valuations carefully rather than get swayed by high prices alone. The price-to-earnings ratio, growth rates, debt levels, competitive landscape and other metrics need to be evaluated to determine if the premium pricing is justified.

Why Should You Invest in an Expensive Share in India?

While high priced stocks come with elevated risks, there are a few compelling reasons why they may merit inclusion in your portfolio:

• Multi-Bagger Potential: Some quality stocks trading at higher prices can become multi-baggers over time. For example, Page Industries was trading around ₹15,000 per share in 2017 and has now crossed ₹40,000 per share.
• Scarcity Premium: Companies with niche business models and limited competition often trade at expensive valuations. The scarcity allows them to maintain high margins and growth.
• Strong Brands: Stocks of companies with strong brands command higher valuations owing to pricing power and customer loyalty. Examples are brands like Asian Paints, Pidilite, Titan etc.
• Consistent Growth: Expensive stocks of companies that have shown consistent revenue and profit growth year-after-year justify their higher valuations.
• Inflation Hedge: During high inflation, stocks act as a good hedge as companies can pass on cost increases to customers. Stocks with greater pricing power perform better.

However, moderation and disciplined investing is advised when buying expensive stocks. Invest only on dips, avoid overexposure, book profits at regular intervals and keep a long-term view.

Relationship Between Share Price And Market Capitalization

Market capitalization refers to the total market value of a company’s outstanding shares. It is calculated by multiplying the current market price of one share by the total number of outstanding shares.

For example, if a company has 1 crore shares outstanding and its current share price is ₹500, the market capitalization is 1 crore x ₹500 = ₹500 crores.

As is evident from the formula, the market capitalization moves in direct proportion to the share price, assuming the number of outstanding shares remains constant.

If the share price increases to ₹750 while the outstanding shares remain 1 crore, the market cap will be 1 crore x ₹750 = ₹750 crores.

However, market cap may not move linearly with share price if the number of outstanding shares changes via corporate actions like rights issue, bonus issue, share split, buyback etc.

While share price reveals the stock’s demand-supply dynamics, market capitalization indicates the total market value of the company’s shares. Generally, stocks with higher market caps are considered more stable and less risky. However, high share price and market cap alone should not drive investment decisions.

Challenges of Investing in the Most Expensive Shares in India

While investing in shares with astronomical prices may lead to high returns, it also comes with significant challenges that need to be considered:

• Affordability: The high price means lower affordability for small retail investors, preventing diversification. Investing a sizable amount requires large capital.
• Liquidity Risk: Stocks with such steep prices tend to have lower liquidity as trading volumes are thin. This can increase bid-ask spreads and the impact cost while buying or selling.
• Volatility: Expensive stocks see sharper price swings compared to stocks with lower prices. The percentage change is higher leading to higher volatility.
• Lack of Margin Funding: Many brokers do not provide margin funding against stocks priced above ₹10,000-₹20,000 due to higher risk perception. This increases capital requirement.
• Tax Headaches: Booking profits on the stock could result in large capital gains tax liability needing proper planning.
• Difficulty in Hedging: Lack of adequate volumes and liquidity makes hedging expensive and difficult to execute.

Thus, retail investors need to be cautious due to the above challenges and should allocate only a small portion of their portfolio to expensive shares.

How to Invest in the Highest Priced Shares in India

For investors willing to invest in stocks trading at steep valuations, here are some tips:

• Avoid Impulsive Buying: Don’t get swayed by high prices and buy impulsively. Research fundamentals, valuation metrics, risks thoroughly.
• Allocate Prudently: Limit exposure to 5-10% of your overall portfolio due to lack of liquidity and high risk. Gradually build positions.
• Prefer SIP Route: Systematic investment plans allow buying in small lots regularly. This averages out the price risk.
• Wait for Price Corrections: Look to buy on significant dips when the stock corrects from highs. Drawdown can be used as an opportunity.
• Book Profits: When the stock rally leads to excessive valuations, trim positions partially to book profits. Re-enter on declines.
• Use Covered Calls: Writing covered calls when sentiment is bullish can earn premium income while holding the stock.
• Avoid Leverage: Do not borrow to buy these stocks. The leverage can magnify losses if share price corrects sharply.
• Consider Taxation: Plan taxes in advance to minimize liability when generating gains on expensive stocks.

So while investing in high priced shares, be cautious, limit exposure, hedge risks, book profits, use leverage prudently and consider taxes for better risk-return payoff.

Things to Remember Before Investing in the Most Expensive Shares in India

Investing in shares with sky-high prices may seem thrilling but requires rigorous research and risk management. Here are some key things to remember:

• Don’t chase prices: Expensive price tags often attract investors. But don’t get swayed and buy based on high prices alone.
• Assess valuation: Determine if the valuation multiples like P/E, P/B ratios justify the premium pricing for the stock.
• Research business model: Understand the company’s business, competitive advantages, growth levers, risks and opportunities.
• Check ownership: Review the promoter holding and remuneration, institutional investors’ stake and their buying history.
• Understand liquidity dynamics: Analyze the average trading volumes, impact cost and bid-ask spread to gauge liquidity.
• Consider opportunity cost: Evaluate whether the money could be better invested elsewhere with more margin of safety.
• Allocate prudently: Limit overall allocation to 5-10% of portfolio due to heightened risk. Avoid overexposure.
• Have long-term horizon: Identify stocks with longevity rather than trading opportunistically. Be patient for value unlocking.
• Book profits on rallies: Don’t get greedy waiting for more gains. Disciplined profit booking reduces risk.

So analyze carefully, allocate prudently, hedge risks and book profits proactively when investing in expensive stocks.

Why is the price of MRF shares so high?

MRF is the largest manufacturer of tyres in India and trades at a very high share price of over ₹1,41,000 per share as of 2024. Here are some of the reasons for the astronomical share price of MRF:

• Monopoly-like position: MRF has over 25% market share in the tyre industry in India with a strong brand image, distribution network and high entry barriers resulting in pricing power and windfall profits.
• Consistent financial performance: MRF has consistently posted excellent revenue and profit growth for decades due to inelastic demand for tyres and efficient operations.
• Low public shareholding: Only around 2% of MRF’s shares are available for public trading leading to very low floating stock and poor liquidity. This exacerbates demand-supply imbalance and inflates the price.
• Strong balance sheet: MRF is debt-free, capital light with very high return on capital allowing the surplus to be distributed via dividends and buybacks thereby supporting the share price.
• Scarcity premium: Mr. Rahul Mammen Mappillai owns 70% stake limiting trading. This scarcity drives investors to pay a premium for the limited floating stock.
• Index inclusion: Inclusion in benchmark indices forces passive funds to buy MRF shares regardless of valuations.

While the high price raises risks like liquidity and affordability, MRF’s dominance in the industry continues to support such elevated valuations.

Are high share price stocks better than penny stocks or low-valued stocks?

There is no clear winner in the debate between investing in stocks with very high prices versus penny or low priced stocks. Both have their pros and cons:

Advantages of High Priced Shares:

• Typically established companies with long track record
• Lower volatility and risk perception
• Greater institutional holdings and analyst coverage
• Strong brands and competitive position

Disadvantages of High Priced Shares:

• Poorer liquidity and wider bid-ask spreads
• Possibility of overvaluation and downside risk
• Challenging for small investors to accumulate meaningful position size

Advantages of Low Priced Shares:

• Huge upside potential if business scales successfully
• Smaller capital required to take sizable positions
• Opportunity to identify hidden gems early

Disadvantages of Low Priced Shares:

• Higher volatility and risk of capital loss
• Weaker fundamentals and financials
• Lower transparency and corporate governance
• Susceptible to pump and dumps

Rather than getting fixated on absolute price levels, it is prudent to analyze the underlying company’s financial health, growth prospects, valuation, competitive advantages, management quality and corporate governance to make informed investment decisions. A balanced portfolio would include both well-established stocks along with a few carefully selected small caps.

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