Tue Oct 29 23:32:10 UTC 2024: ## Small-Cap Stock Elcid Investments Makes History with 66,92,535% Surge in One Day

**MUMBAI, INDIA** – Elcid Investments, a small-cap stock previously known only to a select few, has rewritten the history of the Indian stock market. The stock, which was trading at a mere ₹3.53, has skyrocketed to ₹2,36,250, marking an impossible-seeming 66,92,535% jump in a single day. Elcid is now India’s most expensive stock, surpassing even MRF’s ₹1.2 lakh per share.

This unprecedented surge, reminiscent of the cryptocurrency boom in 2021, is not due to investor frenzy but rather a special call auction conducted by stock exchanges BSE and NSE for price discovery in investment holding companies. Despite trading at only ₹3 per share since 2011, Elcid held a book value of ₹5,85,225, indicating a significant discount. According to Economic Times, Samco Securities attributed this to existing shareholders being reluctant to sell due to the lack of trading activity since 2011.

SEBI had instructed stock markets to conduct special auctions for holding companies with steep discounts compared to their book value to bridge the gap between their current market value and book value. Elcid, previously seeing minimal trading volume, saw a fair value discovery during the special session, resulting in the record-breaking 6.7 million percent gain.

Elcid Investments holds a 1.28% stake in Asian Paints, valued at ₹3,616 crore, representing 80% of Elcid’s total market cap. Even at ₹2.3 lakh per share, Samco states that Elcid trades at a price-to-book multiple of only 0.38. With a market capitalization of just ₹4,725 crore, Elcid now reigns as India’s most expensive stock.

It is important to remember that share price and valuation are distinct concepts. A high share price does not necessarily equate to being expensive, just as a low share price doesn’t automatically imply a stock is cheap.

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