Investing in the stock market can feel like stepping into a new world, especially regarding high-priced shares. These are stocks of well-known companies with share prices among the highest in the market. Let's understand the risks, benefits, and who can invest in these expensive shares.
S.No | Company Name | Share Price (INR) | Industry |
1 | Property Share Investment Trust | ₹10,15,000 | Real Estate Investment Trust (REIT) |
2 | MRF Ltd | ₹1,34,756 | Tyres & Rubber Products |
3 | Elcid Investments Ltd | ₹1,32,777 | Investment Products |
4 | Page Industries Ltd | ₹48,915 | Garments & Apparels |
5 | Yamuna Syndicate Ltd | ₹37,484 | Trading & Distributors |
6 | Honeywell Automation India Ltd | ₹34,700 | Industrial Automation |
7 | Abbott India Ltd | ₹30,595 | Pharmaceuticals |
8 | 3M India Ltd | ₹29,905 | Diversified Manufacturing |
9 | Bosch Ltd | ₹29,600 | Auto Components & Equipment |
10 | Shree Cement Ltd | ₹29,297 | Cement & Cement Products |
Investing in high-priced shares is similar to buying any other stock, but the cost per share is much higher. Here’s a simple guide to get started:
To buy shares, you need a Demat account to store your shares electronically and a trading account to buy or sell them. You can open these accounts through a trusted broker like Zerodha, Upstox, or Angel One.
Transfer money from your bank account to your trading account using net banking or UPI. This is the money you’ll use to buy shares.
Look for high-priced shares on platforms. Check the company’s background, like its profits, growth, and market position. For example, MRF is a top tire maker, and Page Industries sells popular Jockey products.
Log in to your trading account, search for the stock (e.g., MRF), and decide how many shares you want to buy. Since these shares are expensive, you might only buy one or two at a time.
Choose a “market order” to buy at the current price or a “limit order” to set your own price.
Confirm the order, and the money will be deducted from your demat account.
After buying, the shares appear in your Demat account. Use your broker’s app to check the stock's performance. You can sell the shares later if the price goes up or hold them for long-term growth.
Before putting your money into expensive shares, think about these key points to make a smartchoice:
Check if the company is making steady profits and growing. Look at its financial reports (available on the company’s website or apps like Moneycontrol). For example, a company like MRF has been a leader in tires for years, which makes its high price more reliable.
A high price doesn’t always mean the stock is worth it. Compare the share price to the company’s earnings using the Price-to-Earnings (P/E) ratio. A lower P/E ratio might mean the stock is undervalued and a good buy. For example, if a stock’s P/E is lower than similar companies in its industry, it could be a smart pick.
High-priced shares cost a lot, so make sure you can afford them without using money meant for daily needs. For example, one share of Property Share Investment Trust costs over ₹10 lakh, which might be too much for most people.
Understand what’s happening in the industry. For instance, if tire demand is growing due to more cars on the road, MRF might be a good choice. But if the industry is struggling, even expensive stocks can lose value.
Some high-priced stocks have fewer buyers and sellers, making it harder to sell them quickly. Check the stock’s trading volume (how many shares are traded daily) to ensure you can sell when needed.
Decide why you’re investing. Are you looking for quick profits or long-term growth? High-priced shares are often better for long-term goals, like retirement savings, because they tend to grow steadily.
While high-priced shares can be rewarding, they come with risks. Here’s what to watch out for:
If the share price drops, you could lose a lot of money. For example, if you buy one MRF share at ₹1,13,000 and the price falls by 10%, you lose ₹11,300 on just one share.
Even big companies can face price swings due to market changes, economic issues, or global events. For instance, if the economy slows down, demand for tires might drop, affecting MRF’s stock price.
Because these shares are so expensive, you might only afford a few, putting all your money in one or two companies. If those companies struggle, your investment suffers. Spreading money across different stocks reduces this risk.
Some high-priced stocks are priced higher than their actual value. If the market realizes this, the price can crash. Always check if the stock’s price makes sense based on the company’s earnings and growth.
High-priced stocks like Elcid Investments may have low trading volumes, meaning it’s hard to sell them quickly without lowering the price.
Despite the risks, high-priced shares have some great advantages:
High-priced shares aren’t for everyone, but certain people are better suited to invest in them. Here’s who can consider these stocks:
To make the most of your investment, follow these simple tips:
Investing in the most expensive shares in India can be a smart way to grow your money, but it’s not without challenges. By understanding how to invest, thinking about key factors, weighing the risks and benefits, and knowing if you’re the right fit, you can make confident choices. Companies like MRF, Page Industries, and Elcid Investments offer stability and growth, but they require careful planning and research.
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