Wed Oct 30 12:50:00 UTC 2024: ## Penny Stock Soars to Rs 2.36 Lakh: Elcid Investments Hits New High Driven by Asian Paints Holdings

**MUMBAI:** Elcid Investment Ltd, a microcap player, has taken the Indian stock market by storm, soaring to a record-breaking Rs 2,36,250 per share on Tuesday. This skyrocketing price dwarfs even MRF Ltd, previously considered the most expensive stock on the market.

The surge in Elcid’s stock is attributed to its 2.95% stake in paint giant Asian Paints Ltd, worth nearly Rs 8,500 crore. Despite its high price, the stock is still trading at a discount to its intrinsic value, based on its Asian Paints holdings.

Elcid Investments was relisted on BSE on Tuesday after a failed delisting attempt. The company’s promoters had offered a base price of Rs 1,61,023 per share for delisting, but the resolution failed due to lack of support from public shareholders.

Experts warn that while Elcid’s high price is driven by its stake in Asian Paints, investors should be cautious. “Such companies have business of holding stocks of other companies which direct the stock prices for investors,” said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities. He advises investors to assess their risk appetite, consider liquidity risks, and examine the company’s cash flows before investing.

The market capitalization of Elcid Investments currently stands at nearly Rs 4,800 crore. Despite its recent surge, the stock has seen limited trading in the past few years.

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