New Delhi: In a remarkable shift during this year’s Muhurat trading, Elcid Investments has now claimed the title of India’s most expensive stock, doubling the price of MRF shares. On Friday, November 1, Elcid Investments surged by Rs 12,403.10 per share, rising 5 per cent to a record high of Rs 2,60,465.60. In comparison, MRF’s last traded price was Rs 1,23,301.20.

Why Elcid Investments Now Costs Twice As Much As MRF's Share Price?Elcid Investments gained widespread attention this week after its share price skyrocketed from Rs 3.53 directly to Rs 2,36,250 in a single day, an astonishing 66,92,535 per cent increase. The dramatic surge was part of a price discovery session organized by the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on October 29, where only 241 shares were traded. Elcid Investments: ValueElcid’s value had been dormant at just Rs 3.5 per share since 2011, despite having a hefty book value of Rs 5,85,225. This wide gap between the trading price and the book value made existing shareholders hold onto their shares. SEBI, the market regulator, recently ordered exchanges to conduct a special call auction session to align the prices of such holding companies with their actual market value. The result was an unprecedented single-day gain of 67 lakh percent, marking the highest single-day jump recorded.

Despite Elcid Investments’ soaring price, experts advise investors to differentiate between share price and intrinsic value. While a high share price is attention-grabbing, it doesn’t necessarily reflect a stock's true worth or its affordability. Dividend Impact And HistoryElcid Investments, known for its lucrative dividends, offered Rs 25 per share in FY24, which gave it an extraordinary dividend yield of 708 per cent when the stock traded below book value. This yield was previously boosted by Elcid’s low trading price, making it one of the highest in the industry. However, following the new price discovery and surge, the dividend yield is expected to fall significantly, as the share price is now aligned closer to its actual value.( Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. Times Now Digital suggests its readers/audience to consult their financial advisors before making any money-related decisions.)