Half of India's top-10 highest denominations stocks outperform indices

Half of India's top-priced stocks have outperformed the benchmark indices this year. On a year-to-date basis (YTD), the Sensex has gained 3.8 per cent and the Nifty50 3.4 per cent.
 

The stocks which have outperformed the indices include 3M India, Nestle India, MRF, Shree Cement and Bosch while those who have underperformed the benchmarks include Page Industries (-10.4 per cent), Procter & Gamble (-4 per cent), Honeywell Automation (-0.9) and Lakshmi Machine Works, which gained 1.3 per cent. Abbot India has matched the returns of the indices.

A combination of good management, healthy growth in their respective businesses, low paid-up capital base, and no share split or equity dilution are the reasons for their high market price.
 

"Most of them are zero debt, net cash companies. But not doing share splits or issuing bonus ones is stopping these companies from commanding a higher market capitalisation,' said G.Chokkalingam, founder of Equinomics.
 

Analysts though, say that many retail investors are staying away from these stocks as one share costs a lot. And, there is a misconception that these stocks are overpriced because of their current market price.
 

"It's high time some of them issue bonus shares and let more retail investors participate," said an analyst.