MRF Reclaims India’s Most Expensive Stock Title from Elcid Investments

MRF Reclaims India’s Most Expensive Stock Title from Elcid Investments

MRF bounces back to the top spot as India’s costliest stock, surpassing Elcid after a steady rally and solid financial performance

MRF Regains Top Position in India’s Stock Market

Tyre manufacturing giant MRF has once again emerged as the most expensive stock in the Indian market, surpassing Elcid Investments after months of consistent upward momentum. As of June 3, 2025, MRF’s stock price climbed notably to ₹1,38,539, showcasing a strong resurgence from its lowest point in the past year—₹1,02,124—set just a few months earlier in March 2025.

The sustained rise in MRF’s stock price also signals growing investor confidence in traditional blue-chip manufacturing firms amid a market where speculative plays have recently made headlines. The company’s long-standing reputation, combined with strong earnings visibility, continues to make it a preferred choice for institutional and retail investors alike.

Elcid’s Meteoric Rise and Rapid Decline

In late 2024, Elcid Investments momentarily captured widespread attention across the country due to a remarkable surge in its stock price. During a special call auction conducted by the Bombay Stock Exchange (BSE) on October 29, Elcid’s share price shot up from a modest ₹3.53 to a jaw-dropping ₹2,36,250 within a single day. This astonishing surge of 66,92,535% propelled Elcid past MRF, whose shares were valued at ₹1,22,576 at that time.

The surge was fueled by a Securities and Exchange Board of India (SEBI) initiative that aimed to assess the real market value of underpriced holding companies. For a short period, this valuation adjustment made Elcid the most expensive listed stock in India.

However, the rally did not last long. The stock peaked in November 2024 at ₹3,32,399.95 before undergoing a steep correction. A key factor behind this decline was the falling valuation of Elcid’s 1.28% stake in Asian Paints. The value of this asset declined from ₹3,616 crore in October 2024 to ₹2,775 crore by June 2025.

Asian Paints Decline Impacts Elcid Valuation

The downward spiral in Asian Paints’ stock had a cascading effect on Elcid’s market value. Currently, Elcid’s total market capitalization stands at around ₹2,584 crore—now less than the value of its stake in Asian Paints. The paint major’s shares have plunged over 21% in the past year and nearly 30% over the last two years. This sustained fall weighed heavily on Elcid’s valuation, causing its share price to retreat to ₹1,29,899.

Understanding the Price: Valuation vs. Actual Worth

While Elcid’s short-lived reign as the highest-priced stock was largely driven by revaluation strategies and low liquidity, MRF’s lofty share price has a different origin. MRF maintains a relatively small number of outstanding shares, which contributes to its high per-share value.

It is important to understand that the market price of a stock often does not accurately represent its fundamental value. Elcid’s case serves as a prime example of how external market forces and concentrated holdings can artificially inflate valuations.

MRF’s Strength Lies in Fundamentals

In contrast to Elcid’s price surge fueled by valuation shifts, MRF’s shares have risen gradually, supported by strong underlying financial health and reliable operational results. The company’s upward trajectory has been supported by healthy financials and operational efficiency.

In the quarter concluding March 2025, MRF achieved a net profit of ₹498 crore, reflecting a notable increase from ₹380 crore in the same quarter of the previous year. The company’s topline grew by 12%, touching ₹6,944 crore, while EBITDA witnessed an 18% upswing to ₹1,043 crore, accompanied by a margin enhancement to 15%.

The company’s focus on operational excellence and cost management strategies has also played a pivotal role in strengthening its profitability. In an increasingly competitive sector, MRF’s disciplined approach to capital expenditure and innovation has helped maintain its leadership position.

Market Leadership and Diversification Fuel MRF’s Growth

As India’s largest tyre manufacturer, MRF holds a dominant position in the automotive sector. Its product portfolio spans a wide range of categories including tyres for passenger vehicles, commercial trucks, two-wheelers, and agricultural machinery.

Over time, MRF has expanded its business ventures well beyond just tyre manufacturing. The company is also involved in the production of conveyor belts, paints, and even sports goods, which adds depth to its business model and offers additional revenue streams.

This level of diversification not only reduces dependency on the core tyre business but also creates long-term growth potential. MRF’s multi-segment strategy has allowed it to adapt to shifting market dynamics more effectively than many of its peers.

Final Thoughts

The battle for India’s highest-priced stock highlights two contrasting stories: one driven by valuation adjustments and the other by solid performance. Elcid Investments briefly claimed the title due to a dramatic market revaluation, but its reliance on a single major holding made it vulnerable to volatility.

MRF’s resurgence to the leading position highlights the critical role of solid financial foundations and steady profit generation. With diversified offerings and stable growth, MRF continues to attract long-term investors, proving that sustainable value ultimately outshines short-term hype.

The image added is for representation purposes only