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Published: October 30, 2024
Updated: October 30, 2024

Elcid Investments Becomes India’s Most Expensive Stock with Unbelievable 6.7 Million Percent Surge

Unprecedented Stock Surge

Shares of Elcid Investments recently skyrocketed by an astonishing 6.7 million percent in a single trading session, pushing the stock price to Rs 2.36 lakh per share. This unprecedented rise has transformed Elcid into India’s highest-priced stock, drawing widespread attention across Dalal Street. The surge followed a special call auction aimed at uncovering the stock’s fair value, creating a frenzy of interest from investors.

The Exclusive 328-Member Shareholder Club

Becoming a shareholder in Elcid is no easy feat. The Mumbai-based non-banking financial company (NBFC) has only 328 shareholders, most of whom are either the company’s promoters or select public shareholders. Approximately 75% of Elcid's shares are held by its promoter group, closely associated with Asian Paints, with limited shares available to the public. Hydra Trading and 3a Capital Services, two prominent shareholders, hold a combined stake of 12.38% in the company.

Retail Investors and Limited Trading Volumes

Among the public shareholders, retail investors—holding shares worth up to Rs 2 lakh—number only 284, collectively owning a 7.43% stake in the company. Additionally, the stock has a few non-resident Indian (NRI) and Hindu Undivided Family (HUF) investors in its portfolio. Despite its high price, Elcid remains illiquid, with only 241 shares traded during the recent auction. Notably, Wednesday's trading session saw zero transactions, highlighting the scarcity of sellers and limited trading volume.

Special Call Auction Spurs Unprecedented Growth

The Securities and Exchange Board of India (SEBI) organized a special call auction to address Elcid's long-standing undervaluation. Previously, Elcid traded at just Rs 3 per share, far below its book value of Rs 5,85,225 per share. The auction lifted restrictions on price movement, allowing the stock to reach a previously unthinkable level. According to Samco Securities analyst Raj Gaikar, SEBI’s intention was to find a fair market price, as regular daily circuit limits would not have allowed the stock to reach its true valuation.

Massive Book Value and Strategic Holdings

Elcid’s impressive book value is bolstered by its holdings, including a valuable 1.28% stake in Asian Paints. This stake alone is valued at roughly Rs 3,600 crore, making up about 80% of Elcid’s market cap, estimated at Rs 4,725 crore. Despite trading below its book value at a price-to-book multiple of just 0.38, Elcid’s intrinsic worth is significant due to these strategic investments. The meteoric rise of Elcid Investments demonstrates both the potential hidden in undervalued companies and the exclusivity that comes with high-priced, illiquid stocks. Accordingly, while its valuation remains compelling, Elcid’s unique position and limited trading volumes mean it’s accessible only to a select few, making it an intriguing outlier on India’s stock market.