Moneycontrol
Dec 05, 2017 11:24 AM IST | Source: Moneycontrol.com

Most expensively priced stocks do sometimes give stellar returns

Moneycontrol undertook an analysis to show that there have been expensive stocks that have given stellar returns to their investor in the last 3 years.

Ritesh Presswala @riteshpresswala
 
 
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Investors usually stay away from stocks which are expensively priced, likely due to the belief that such scrips can't possibly see an up-move. However, a Moneycontrol analysis shows there have been expensive stocks that have given stellar returns to their investor in the last 3 years.

We assessed stocks using two filters: scrips over Rs 5,000 per share and a market cap of over Rs 5,000 crore. We netted 11 stocks from the BSE universe which fulfilled this criterion.

Interestingly, from the above list, five stocks doubled the investors’ wealth barring only one stock -- Blue Dart -- which gave a negative return in the last three years.

Most_expensivestockstable01122017

About 8 out of 11 stocks outperformed the benchmark index Sensex’s three-year return which was 16 percent.

Most_expensivestockperformance01122017

EPS Performance

For the top four performers (Honeywell Auto, 3M India, Page Industries and Eicher Motors), the earnings per share (EPS) had been trending up in each of the last three fiscal years. There were two more stocks -- P&G Hygiene and  Bosch -- whose EPS showed good growth. However, they managed to give price returns of 68 percent and 7 percent, respectively in the period under question.

Most_expensivesEPS1

In the current market, there are 20 stocks which are trading at about Rs 5000 per share and have a market cap of over Rs 5000 crore. Interestingly, among this list, there are 14 stocks whose EPS has been continuously increasing in the last three fiscals.

Most_expensive_curretnstocks1

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