Valuation Challenges and Investor Liquidity Issues

Despite the soaring price, valuation metrics suggest that El Cid Investments may still be undervalued, indicating potential for further growth. The company's book value method calculates its stock value at approximately 5.8 lakh rupees per share, revealing a discrepancy with its market price. However, the stock's low liquidity, with only 328 public shareholders, poses significant challenges, making it difficult for new investors to enter or exit. Furthermore, the company's practice of retaining most of its earnings instead of sharing dividends hampers interest from new investors, perpetuating a cycle of low liquidity and restricted stock value growth.