Much to financial markets’ surprise Elcid Investments has instantly bewitched everybody by moving from ₹3.53 to a shocking ₹2.36 lakh per share on October 29, 2023. Or in other words Elcid’s meteoric rise has multiplied by 70,273 times placing it far above MRF and making it the most costly stock on Dalal Street.
Before that the price moved in the range of ₹3 to ₹15 Well this unprecedented rise happened in a special call auction known as price discovery call for the investment holding companies floated by the stock exchanges. This auction let Elcid achieve an unheard of level of valuation the highest seen till date in the Indian stock market leaving behind MRF’s record.
In an epic fairytale this is how retail investors see Elcid’s climb to the top with dizzying speed. An investor with 10,000 shares would watch his ₹35000 initial stake grow to ₹250 crore after this historic trading session. The extraordinary related stock prices had no correlation with sudden clarification of earnings or sudden business opportunities for Elcid. However it was due to the regulatory driven price discovery mechanism brought about by SEBI to bridge the book value and market price for holding companies which is the operation of El Cid. More specifically, they have ₹4 lakh book value per share, which can illustrate its undervaluation on the stock exchange earlier.
Of these Mumbai based NBFC Elcid boasts of a solid portfolio of over ₹12,450 crore in its latest report. It accounts for the largest part of its valuation through a 2.83% holding in Asian Paints with an estimated market value of around ₹8,500 crore and stakes in several other listed and unlisted firms.
Elcid’s stock price rose 5% to its upper circuit and reached ₹2,48,062.50 on the BSE during intra-day trading after the auction. This outstanding movement has led to a mind blowing 7.03 million per cent gain which makes Elcid a multibagger and more investors especially new ones taking interest in its operations. Until now there are only 30 stocks in India that are listed above ₹10,000 with Elcid being one of the prominent brands in the market lists. On an international basis the most expensive position remains booked in Berkshire Hathaway with the share price of $682,920 (approximately ₹5.6 crore).
This rather colorful story of Elcid Investments from a penny stock all the way to India’s most valuable stock also points towards the as yet unexplored possibilities in India’s investment holding companies. Such drastic increase underlines the potential that market mechanisms for the formation of price level can unlock returning to the sense of unpredictability and the comparatively high level of entertainment that the stock market implies. And while investors are still having to tread the increasingly complex waters of the market there is no doubt that stories like Elcid’s will encourage many others to begin the search for those overlooked treasures within it.
Disclaimer: Investors, should proceed with caution and consult certified experts before making investment decisions.