Generally, investors ignore expensive stocks while setting their investment objectives. However, it’s worth keeping in mind that price doesn’t equate to value. When you account for the value of the stock, most expensive stocks may bring robust growth over time. Moreover, expensive stocks in India usually carry lower risks. Those companies generally belong to a structurally sound sector with the right pricing power.
Therefore, if you are ready to invest heavily, you may consider expensive stocks as an investment option. This post hopes to help you consider the right ones. So, it notes the top five most expensive stocks in India.
Top 5 Expensive Stocks in India - A Quick List
| Name | Industry | NAV/UNIT |
| MRF | Tyre Company | 83,177 |
| 3M India | Industrial Equipment | 103.50 |
| Honeywell Automation India | Electronics Instrumentation and Process Control Equipment | 34,597 |
| Page Industries | Innerwear and Athleisure | 35,864.60 |
| Bosch | Mobility Solutions, Building and Industrial Technology, Consumer Goods, and Energy | 18,179.55 |
Top 5 Expensive Stocks in India - An Overview
Here we will discuss some of the most expensive stocks in India.
MRF
MRF is an established tyre company. Its stocks are considered among the most expensive in India. The primary reason for this expensiveness is perhaps the company’s robust brand name. MRF has maintained its financial performance consistently over the years. From global expansion to cost reduction and productivity elevation, the company has boosted its revenue growth.
The company has been serving the market for over half a century now with excellent goodwill. The company features a low-cost operating model, which allows it to generate higher Returns of Capital Employed (ROCE).
For several years, MRF has maintained a ROCE of approximately 30%, which in turn has contributed to robust FCF (free cash flow) margins. Analysts believe MRF’s stock price may surge even higher in upcoming years because of the revival of demand in the auto industry and the removal of semiconductor disputes in the supply chain. Overall, MRF is among the most promising and profitable Indian stocks. It is an ideal alternative for investors looking to put in a decent amount with the expectation of good returns in the long run.
3M India
This diversified technology and science company is known for its extensive product line. Its safety and industrial segment offers speciality industrial tapes, adhesives, foil, polyester, and more. Its transportation and electronics segment markets border control products, personal protection goods, brand and asset protection solutions, fire protection goods for industrial and commercial establishments, hygiene products for the hospitality industry, and more.
Its healthcare segment deals in medical devices, infection prevention products, orthodontic and dental products, medical and surgical supplies, food safety products, and more. The company is a subsidiary of 3M Company, USA, and it has shown stable performance in the market, over the past few years.
The company’s past 10-year financial track record is good. It has maintained approximately 15% average ROCE over the last decade. In addition, it has managed to maintain smooth cash flow with different value-added strategies like cost control, boosted production, elevated sales reports, and more. The company was recognised on the occasion of World Food Safety Day for its heavyweight contribution to FSSAI methods standards and capacity-building activities. This, in turn, added to the company’s goodwill. 3M stocks are likely to see a price boost in the upcoming days.
Honeywell Automation India
With a market capitalisation of Rs. 35,500 crore, Honeywell Automation India Limited has been a leader in offering integrated software solutions. Its extensive product portfolio includes sensing and control accessories, environmental and combustion control solutions, and more. Honeywell’s stocks have been attractive to investors because of their promising returns generating abilities.
In the last decade, the stock has generated a whopping 229% returns. The company is growing earnings per share while simultaneously paying out a certain percentage of both its cash flow and earnings. While this approach may be slightly conservative, advocates claim it may generate a historic growth in the long run.
Page Industries
The exclusive licensee of Jockey International Incorporation (USA), Page Industries, was established in 1994. The brand manages the manufacturing, distribution, and marketing of Jockey in Sri Lanka, Bangladesh, India, Oman, UAE, Nepal, and Qatar. In January 2023, its market capitalisation was Rs. 44,894.62 crore. The company has steadily maintained a net profit margin of 13.73% with 41.95% ROI, over the last five years.
The fundamental stock’s score (Piotroski F Score) is greater than 5. Page Industries scores the highest in terms of stock price among textile players. As of March 10, 2023, the stock was trading at Rs.36,847 with a PE ratio of 60.1. Given the nature of the stock, it is worthwhile to consider investing in Page Industries, to obtain good returns in the long run.
Bosch
A subsidiary of the German multinational company Robert Bosch, this brand is a steady player in the auto ancillary industry. Its premium product line includes diesel and fuel injection systems, car multimedia systems, auto electricals, vehicle accessories, and more. In the first week of March 2023, Bosch’s stock was trading at Rs. 18,354 with a PE ratio of 39.5. The stock has generated promising returns in the last 5-year bracket, making it appealing for conservative investors.
Benefits of Investing in Expensive Stocks
Expensive, high-priced, or premium stocks are usually associated with industry giants. Such companies generally feature strong financials, promising growth, and pioneerism. What’s more, most of these companies offer lucrative dividend payments, which may let investors build a steady stream of income.
Therefore, it is worth investing in expensive stocks in India. However, the decision should be backed by strong research. When investing in expensive stocks, it is elemental to evaluate the company’s financials, management, competitive advantages, and market position. In addition, it is also vital to check a few valuation metrics, like the price-to-sales ratio and price-to-earnings ratio.
Conclusion
Made for seasoned and conservative investors, some of the most expensive stocks in the market may help generate substantial returns in the long run. However, if they look unaffordable, you may own them indirectly by investing in mutual funds. The stocks mentioned in this post feature viable share price trends. However, before putting your money in expensive stocks, consider your financial goals, affordability, and convenience. Ideally, you should invest after you go through an extensive evaluation of the stocks you’re considering.
Disclaimer
The investment options and stocks mentioned here are not recommendations. Please go through your own due diligence and conduct thorough research before investing. Investment in the securities market is subject to market risks. Please read the Risk Disclosure documents carefully before investing. Past performance of instruments/securities does not indicate their future performance. Due to the price fluctuation risk and the market risk, there is no guarantee that your personal investment objectives will be achieved.