Stock market is all about patience, and if you have that, sky is the limit. Who else to tell you that better than those who actually benefited from it.
How many of us actually hold these multibagger stocks that long? Not many!
Patience is a key to successes, the statement comes true for those equity investors who invested in MRF shares in August 2001 at price of 500 and held on.The stock hit its lifetime high of Rs 81,425 on April, 2018.
The stock is of course MRF, the most expensive stock on Dalal Street in terms of share price.
MRF share price movement and why it is so expensive
MRF is the largest Tyre manufacturer and ranked amongst the Top 20 Global Manufacturers, with 9 state-of-the-art factories across India. It is also Indias largest Original Equipment Manufacturer (OEM) Tyre supplier with an expansive tyre range from two-wheelers to fighter aircrafts.
MRF Ltd. embarked on its journey and got listed in the stock exchanges on September 18, 1996. MRF Ltd.
Since then we have seen the meteoric rise in the share price of the Company.
Today, it is the most expensive stock of Indian Market.
The stock was trading below INR 500 per share on August 2001 and has clocked to the highest level of INR 81,425 per share in April 2018.
One interesting thing that keeps coming up is why the company doesn’t split its stock thereby giving small retail investors the opportunity to have a share of the classic business. The reasons for this could be many as mentioned below:-
MRF Ltd. is already performing really well in the industry and hence does not feel the need to split its share. The performance is reflected in its annual numbers over the last few years
The Company might also not want to dilute its shareholding and hence no more share split or issue;
Lastly, there is also an element of status symbol. Imagine if you are holding some stocks of MRF Ltd., it will surely give you a narcissistic feeling of owning something grand.