Tyre manufacturing company MRF scripted history on Tuesday, becoming the first stock in the Indian markets to touch the Rs 1 lakh mark.
Over the past five days, the stock rallied 2.80 per cent and touched the Rs 1 lakh mark during the intraday trade on Tuesday. It opened at Rs 99,500 on Tuesday and touched the psychological Rs 1 lakh mark and closed the day at Rs 99,900.
Unlike most blue-chip stocks, MRF never opted for a stock split or bonus issue, leading to the stock becoming the highest-priced share on Dalal Street.
The stock has been witnessing steady growth over the past year, rising more than 45 per cent.
According to analysts, a breakout above Rs 1 lakh will confirm bullish trends and take it towards Rs 1.15 lakh levels.
The company's net profit surged over two-fold to Rs 341 crore for the March quarter, riding on lower raw material costs. Revenue from operations rose to Rs 5,842 crore for the fourth quarter, as against Rs 5,305 crore in the year-ago period, the company had said in a recent regulatory filing.
At Rs 41,399, Honeywell Automation is India's second highest-priced stock, followed by Page Industries at Rs 38,450. Other pricey stocks on Dalal Street include 3M India (Rs 27,001), Shree Cement (Rs 26,099) and Nestle India (Rs 22,498).
However, the value of the stock does not depend on how high priced it is, but on other factors like market capitalisation, earnings, P/E (price-to-earnings) ratio, and growth prospects.