American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

This Indian stock soared 6,692,535% in a day—now the costliest on the market

by admin October 30, 2024
October 30, 2024
This Indian stock soared 6,692,535% in a day—now the costliest on the market

Mumbai-based non-banking financial company (NBFC) Elcid Investments made history on Tuesday, skyrocketing from ₹3.53 to ₹2,36,250 per share in a single day, leaving investors astonished.

The unprecedented 6,692,535% surge has vaulted Elcid into the spotlight as India’s most expensive stock, overtaking even MRF’s ₹1.2 lakh per share.

This surge means that, in dollar terms, Elcid is now pricier than the combined stock prices of global giants such as Nvidia, Meta, Amazon, Netflix, and Alphabet, which together amount to $2,655.11, while Elcid’s stock stands at an eye-popping $2,809.74.

However, after this dramatic price leap, trading activity was minimal on Wednesday, raising curiosity over how such a stock could multiply overnight.

What triggered Elcid’s price surge?

Elcid’s record-breaking jump was more than mere market enthusiasm. Historically, its shares traded at single-digit prices despite a substantial book value of ₹5,85,225 per share.

Before this, Elcid last traded at ₹3.53 in June, with limited liquidity keeping its price low. However, a recent regulatory shift has transformed the landscape.

The Securities and Exchange Board of India (SEBI) introduced new measures to better price undervalued holding companies, including a “special call auction” mechanism without price bands, aimed at helping investment companies (ICs) and investment holding companies (IHCs) align more closely with market values.

Under this new system, exchanges held a special price discovery session that allowed Elcid’s shares to trade at their true value.

With a trading volume of only 241 shares, Elcid’s stock skyrocketed to ₹2,36,250, marking an unparalleled rise in Indian market history.

Despite soaring prices, Elcid remains undervalued

Despite the breathtaking share price, analysts caution that this valuation doesn’t necessarily reflect an inflated worth.

According to SAMCO Securities, Elcid’s price-to-book multiple is just 0.38, indicating it remains undervalued relative to its assets.

Notably, Elcid holds a 1.28% stake in the lucrative Asian Paints, valued at around ₹3,600 crore, which accounts for 80% of Elcid’s total market cap of ₹4,725 crore.

This suggests that, despite its astronomical share price, Elcid’s valuation remains modest.

Analysts also emphasize that high prices can simply indicate low liquidity, not necessarily a high valuation.

“A high price per share doesn’t always mean it’s an expensive stock, just as a low price doesn’t mean it’s cheap,” an industry expert remarked.

Elcid stock: strong dividends but reduced yields

Elcid has consistently attracted investors with high dividends, including a payout of ₹25 per share in FY24, yielding over 708% on its previous low share price.

From FY20 to FY22, Elcid maintained consistent dividends, offering ₹15 to ₹25 per share, generating yields as high as 425% on its former price of ₹3.53.

However, with the price surge, Elcid’s once-exceptional dividend yields will diminish since yield is calculated relative to the stock price.

Elcid’s dramatic climb brings renewed attention to undervalued holding companies within Indian markets.

SEBI’s revised price discovery methods have placed companies like Elcid in the limelight, although future movement will depend on sustained market interest and liquidity.

For investors, Elcid’s ascent is a reminder to assess stocks based on both intrinsic value and potential, not just price.

SEBI’s framework could have ripple effects on other undervalued stocks, setting the stage for India’s markets to become a captivating arena for value-focused investors.

Elcid’s story shows that even the most obscure stocks can have surprising potential tucked within their trading history.

The post This Indian stock soared 6,692,535% in a day—now the costliest on the market appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Nio stock price analysis: is this fallen angel a buy?
next post
ServiceNow stock is expensive; does it have a margin of safety?”

Related Posts

What did Trump and China’s Xi discuss during...

January 18, 2025

Bitcoin approaches all-time high after surpassing $65,000

March 6, 2024

European stocks fall as Trump proposes 50% tariff...

May 24, 2025

Uber stock price forecast: is it too late...

October 13, 2024

Is China’s stimulus package finally working? Retail sales...

November 15, 2024

Global food prices ease slightly in January but...

February 7, 2025

Key fed inflation gauge cools to its slowest...

June 29, 2024

Home prices hit record high in June on...

August 29, 2024

Hooters to close ‘underperforming’ restaurants amid broader industry...

June 27, 2024

THETA and iDEGEN lead AI narrative as Bitcoin’s...

December 2, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (3,022)
    • Investing (2,459)
    • Latest News (1,994)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved