Monopoly Stocks in India: How Have They Performed in the Last Couple of Years?

Monopoly Stocks in India: An Overview

Monopoly companies are those companies that have a competitive advantage in the market and are market leaders in their sector. Generally, they have the highest market capitalization in the market as they maintain quality products and services. Non-monopoly companies can find it challenging to compete with monopoly companies in India. In this article, we are going to learn about what are monopoly shares, monopoly stocks in the Indian stock market, an overview of monopoly companies in India

What is Monopoly?

Monopoly is a well-known term in economics. Monopoly competition is when there is no competition in the market due to the presence of a single seller in the market. Monopoly companies do not have any close substitutes in the market.  For example, Indian railways. You need to book tickets from IRCTC to travel through railways as they are the only service provider of railways service. Moreover, they have control over pricing their services. 

Best Monopoly Stocks in India 

(Data as of 4 November 2022)

Disclaimer: The securities quoted are exemplary and not recommendatory. Past performance is not indicative of future returns

Monopoly Stocks in India

1. Coal India: Coal India was established in 1973 and is headquartered in Kolkata, West Bengal. They deal in mining and producing coal. The company supplies its products to power, cement, fertilizer, and steel sector companies. They have a market presence in eight states in India. They produce around 80% of the total coal output of the country. The total market cap of Coal India is Rs. 151,634 Cr and the last traded price is Rs. 246. The company has a low debt-to-equity ratio. Hence, it is almost debt free. They have a healthy dividend yield of 6.91% and the return on equity of the last 3 years is 45.2%. The stock price CAGR of 3 years is 5%. 
2. Indian Energy Exchange: IEX is the first energy exchange in India. The market cap of the IEX is Rs. 12,748 Cr. and the current market price is Rs. 142. The company has become almost debt free and delivered a CAGR of 24.2% in the last 5 years. The return on equity over the last 3 years is 46.9% and has a healthy dividend payout of 52.4%. 
3. Computer Age Management Services (CAMS): The company provides asset management companies (AMC), investor services, and distributor services. The total market cap of CAMS is Rs. 12,020 Cr. and the current market price is Rs. 2,453. The CAGR over the last 5 years is 21.1% and the return on equity over the last 3 years is 45.2%. Moreover, the company has managed to maintain a dividend payout of 80.6%. 
4. Hindustan Zinc: Established in 1966, The company deals in mining lead and smelting. They are accountable for providing 78% zinc of the total zinc production in India. The total market cap of Hindustan Zinc is Rs. 122,069 Cr and the last traded price is Rs. 289. The company's debt-to-equity ratio is 0.07, making it almost debt free. It has a healthy dividend yield of 7.27%. The stock price CAGR of the last 10 years is 8%. 
5. Indian Railways Catering and Tourism Corp (IRCTC): IRCTC plays an important role in the Indian railways as they provide catering and hospitality services on trains and stations. The total market cap of IRCTC is Rs. 60,680 Cr. and the current market price is Rs. 758. The company has a low debt-to-equity ratio and has delivered a CAGR of 23.8% in the last 5 years. 
6. Multi Commodity Exchange: MCX is the first listed exchange in India. The total market cap of the MCX is Rs. 12,748 Cr. and the current market price is Rs. 142. The company has a low debt-to-equity ratio and has delivered a healthy CAGR of 24.2% in the last 5 years. 
7. Pidilite Industries: Pidilite industries manufacture adhesives, polymer emulsions, craftsmen products, construction chemicals, sealants, and DIY products. The popular brands are Fevicol and M-seal. They contribute a market share of 70%. It is used in every Indian household. The total market cap of the Pidilite industries is Rs. 134,598 Cr. and the current market price is Rs. 2,648. The company has a low debt-to-equity ratio and is expected to give good returns in the next quarter. 
8. Praj Industries: Established in 1985, the company has a global presence in more than 75 countries. The market cap of Praj industries is Rs. 7,809 Cr. and the current market price is Rs. 425. The company has a low debt-to-equity ratio and has delivered a CAGR of 27.1% over the last 5 years. 
9. Marico: Marico company manufactures beauty and wellness products. The most popular brands are parachute and saffola. The company’s operation is spread in over 25 countries. The total market cap of Marico is Rs. 69,716 Cr. and the current market price is Rs. 539. The company’s ROE for 3 years is 36.0% and maintained a dividend payout of 88.4%. 
10. Asian Paints: Established in 1942, the company is the largest paint company in India. Their business operation is spread across 15 countries. They manufacture lacquers, thinners, varnishes, and metal sanitary wares. The total market cap of Asian Paints is Rs. 305,154 Cr. and the current market price is Rs. 3,181. The company has maintained a healthy return on equity of 25.8% in the last 3 years and a dividend payout of 52.6%. 

(All the above data is as of 4 November 2022)

Disclaimer: The securities quoted are exemplary and not recommendatory. Past performance is not indicative of future returns
To conclude, investing in monopoly stocks can give you high returns in the long term. However, it is associated with high risk. So, make sure to analyze the financials of the company, management, and fundamental metrics such as return on equity, earnings per share, return on capital employed, price-to-earning ratio, and debt-to-equity ratio. understand your investment objective, risk tolerance, and timeline of your investment before making any investment decision. 

This is not an investment advisory. The blog is for information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance, and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs. The performance and returns of any investment portfolio can neither be predicted nor guaranteed.