In October 2024, Dalal Street witnessed a phenomenon that stunned even the most seasoned market watchers. A little-known company, Elcid Investments, saw its stock price skyrocket from a meagre INR 3.53 to an astronomical INR 2,36,250—an unprecedented single-day surge of 66,92,535%. For a brief period, Elcid Investments dethroned long-time heavyweight MRF to become India’s most expensive stock. Investors holding as few as 50 shares found themselves transformed into overnight millionaires. But as quickly as fortunes rose, they fell just as dramatically. Within eight months, the stock lost over 60% of its value. Today, it trades at nearly INR 1.30 lakh, and the crown has returned to MRF.
This is the full story of how a special auction, regulatory revaluation, and overexuberant speculation created one of India’s most extreme stock market rollercoasters—and how it came crashing down.
Act 1: The Meteoric Rise – How Elcid Became India’s Most Expensive Stock
Elcid Investments, a small-cap non-banking financial company (NBFC) registered with the RBI, had long flown under the radar. It had virtually no operational business of its own, but held substantial investments in high-performing companies, most notably a 1.28% stake in Asian Paints, worth several thousand crores.
However, its stock price didn’t reflect this intrinsic value. For over a decade, Elcid Investment share price hovered around INR 3 to INR 5, with no active trading. Investors, aware of the disparity between its book value of INR 5.85 lakh per share and the market price, were reluctant to sell.
This status quo changed on 29 October 2024, when the Bombay Stock Exchange (BSE), following a SEBI directive, conducted a special call auction with no price bands for under-traded investment holding companies. The goal: to enable fair price discovery.
The result was historic. Elcid Investments share price leapt from INR 3.53 to INR 2,36,250 in a single session. Market capitalisation ballooned overnight, and the company found itself in headlines across the country. Retail investors and social media exploded with stories of 24-hour millionaires.
Act 2: Reality Sets In – The Correction Begins
Despite the dramatic revaluation, industry veterans cautioned that the rally was not based on earnings growth or business performance. Elcid’s fundamentals remained unchanged—it generated revenue almost entirely from dividends on its investments, particularly Asian Paints.
By November 2024, the rally peaked with the stock touching an all-time high of INR 3,32,399.95. Then came the reversal.
Multiple headwinds emerged:
- Asian Paints’ Decline: The flagship holding in Elcid Investments’ portfolio began to falter. Shares of Asian Paints declined by over 21% in the past year and nearly 30% over two years. Consequently, the value of Elcid’s holding dropped from INR 3,616 crore to INR 2,775 crore.
- Financial Woes: Elcid’s financials deteriorated rapidly. According to its March 2025 quarterly results:
- Profit Before Tax (excl. other income) fell to INR (21.17) crore (vs avg. INR 61.81 crore prior).
- Profit After Tax plunged to INR (19.54) crore.
- Operating profit turned negative at -INR (20.90) crore.
- EPS dropped to a staggering INR (977), reflecting serious shareholder value erosion.
The stock, once a symbol of instant riches, began a painful correction.
Act 3: The Fall – MRF Regains the Crown
By 3 June 2025, Elcid Investments share price had tumbled to INR 1,30,853—nearly 60% below its November peak. Meanwhile, MRF, the country’s largest tyre manufacturer, staged a strong comeback, aided by robust earnings and consistent business fundamentals.
In contrast to Elcid’s speculative surge, MRF’s rise was steady and earned:
- March 2025 quarter net profit of INR 498 crore (up from INR 380 crore YoY),
- Revenue growth of 12% to INR 6,944 crore,
- EBITDA rose by 18%, with margin expansion to 15%.
MRF regained its title as India’s most expensive stock, closing above INR 1.46 lakh per share.
Conclusion
Elcid’s meteoric rise and subsequent fall are a textbook case of market distortion driven by regulatory revaluation, illiquidity, and investor exuberance. While SEBI’s intent to discover fair value in undervalued holding companies was commendable, the Elcid episode underscores the dangers of price discovery in thinly traded counters without operational strength.
As of July 2025, Elcid trades at around INR 1.30 lakh, still among the highest-priced stocks in India—but no longer a crown jewel. Its market cap (~INR 2,600 crore) is now less than the value of its stake in Asian Paints, raising questions about sustainability and valuation.
Investors are reminded of a key market axiom: a stock’s price is not its value. While speculative rallies can enrich a few overnight, long-term wealth is created through consistent performance, transparency, and business fundamentals.
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