Elcid investment limited was incorporated on 3.12.1981 under the provisions of companies Act 1956 in Mumbai. According to information that ECLID Investments is an RBI-registered NBFC, and its business is to make investment in shares, debentures, mutual funds etc.
ELCID Investment shares hit 5% up and continues record breaking surge.
Share of ELCID Investment soared 5% in Thursday’s trade, hitting the upper circuit at Rs 2,48,0625.5 on the BSE. This rally extends ELCID’S remarkable rise, which has captured market attention due to its transformation from a little-known small cap stock to India’s most expensive one, surpassing even MRF’S per share price.
On Wednesday, ELCID made headlines with an unprecedented jump of 66,92,535% rising from Rs 3.53 to Rs 2,36,250 following. A special call auction session on October 29, organized to uncover the fair value of undervalued holding companies. On Thursday, the stock surged even higher, reaching Rs 2,48,062.5. A leap from Rs 3.53 that now comes out to be an astonishing 70, 27,166%.
The October 29 auction session established a fair value for ELCID shares at Rs 2.25 lakh, still significantly below the company’s substantial book value of Rs 5,85,225 per share. ELCID has also been known for generous payouts. With a dividend of Rs 25 declared for FY24, previously translating to an industry leading dividend yield of over 708% due to its low trading price.
However, the recent surge will substantially adjust the dividend yield to align with the stock’s new market value. ELCID offered Rs 25 per share in FY23 and Rs 15 in the three years prior, with yield around 425% from FY20 to FY22.
ELCID’s rise has also displaced MRF as India’s highest priced stock. While MRF’s market capitalization was Rs 51,850 crore on Wednesday, ELCID’s stood at Rs 4,961 crore. The valuation is primarily driven by its 1.28% stake. In Asian Paints, valued at Rs 3,616 crore and accounted for around 80% of ECLID’s total market cap. Despite the high share price, ELCID still trades at a price to book multiple of around 0.4 indicating further potential upside according to analysts.
For Investors.
Investors must note that share price and valuation are different concepts. A high share price does not necessarily mean expensive. Just like a low share price does not directly mean that the stock is cheap. So analysis everything and then invest when and wherever you want.
