There are certain companies in the share market that stand atop with barely any competitors. These are defined as monopoly companies whose stocks are considered to be top monopoly stocks. This is a list of such shares.
Top 10 Monopoly Stocks in India
Whether it’s because a company stands unopposed or has the early mover advantage in a sector, monopolies have been historically present in the Indian economy.
Some of these companies are government-backed while others are private. Check out the list below to know more about the best monopoly stocks in India.
1. Coal India
Coal India is known to be the biggest coal-producing company in the world. Backed by the Ministry of Coal (Government of India), Coal India was established in 1975.
It operates eleven subsidiary companies, all of which contribute to 85% of India’s coal production.
- Coal India Share Price: ₹230.75
- Market Cap: ₹1,44,639.00 Cr
Coal India share has generated 65.06% returns in the last three years and is also known to be a high dividend blue chip stock.
2. Indian Railway Catering and Tourism Corporation (IRCTC)
IRCTC is a large cap company that handles ticketing, catering, and tourism services for the Indian Railways.
It is a subsidiary of Indian Railways and is a Public Sector Undertaking that was established in 1999.
IRCTC has a monopoly in railway ticketing services and features on this list as a result.
Apart from being a ticketing juggernaut, the company also has a stronghold over catering and supplying drinking water on Indian Railways trains.
- IRCTC Share Price: ₹651.70
- Market Cap: ₹51,904.00 Cr
3. Hindustan Aeronautics Ltd (HAL)
HAL started its operations in 1940 with the objective of manufacturing aircraft in India for the military.
The company started manufacturing aircraft like Harlow Trainer, Curtis Hawk Fighter, and Vultee Bomber Aircraft.
Presently, it also manufactures helicopters and certain components for the Indian military.
- HAL Share Price: ₹3,891.45
- Market Cap: ₹1,27,907.00 Cr
4. Bharat Heavy Electrical Limited (BHEL)
BHEL is one of the top engineering and manufacturing companies in India with respect to the energy and infrastructure industry.
The company was established in the year 1964 and is a pioneer in power equipment manufacturing not just in India but also worldwide.
BHEL continues to have a significant presence and monopoly in the domain of manufacturing power equipment.
- BHEL Share Price: ₹111.05
- Market Cap: ₹35,203.70 Cr
5. Indian Energy Exchange Limited (IEX)
India Energy Exchange (IEX) is India’s leading energy marketplace.
You can think of it as a completely automated trading platform that’s designed for efficient price discovery and physical delivery of renewables, electricity, and certificates.
Established in 2008, IEX is regulated by the Central Electricity Regulatory Commission. The energy monopoly company has also expanded into the South Asian Power Market recently.
- IEX Share Price: ₹124.50
- Market Cap: ₹11,645.50 Cr
6. ITC
ITC was established in the year 1910 and operates in a variety of domains like Fast Moving Consumer Products, Hotels, Paperboards and Packaging, Information technology, and Agri-Business.
That’s why ITC makes it to the list of top monopoly stocks because its strong presence is visible across multiple industries – not just one.
- ITC Share Price: ₹454.25
- Market Cap: ₹5,71,638.00 Cr
7. Asian Paints
Asian Paints is India’s top paint and décor company established in the year 1942. The company operates in 15 countries and has 27 manufacturing units.
Asian Paints enjoys a monopoly due to its extensive product range, massive distribution network, and super-optimized supply chain.
- Asian Paints Share Price: ₹3,179.70
- Market Cap: ₹3,19,451.00 Cr
8. Nestle India
Nestle India is a subsidiary of Nestle SA. The company is majorly involved in consumer food and beverages.
Some of its popular brands are Nescafe, Milo, Maggi, Kit Kat, Nestea Munch, etc.
- Nestle India Share Price: ₹22,025.95
- Market Cap: ₹2,14,109.00 Cr
9. Praj Industries
Praj Industries is one of the most successful companies in India in the field of bio-based technology and engineering.
The company’s plant is located at Bhosari in Pune and has a stronghold in the ethanol and biodiesel domains.
It provides sustainable products for industrial water treatment, bioenergy, high-purity water, critical process equipment, etc.
- Praj Industries Share Price: ₹489.85
- Market Cap: ₹8,752.09 Cr
10. Computer Age Management Services (CAMS)
CAMS is the largest mutual fund transfer agency in India. The company provides MF services and statements and is a service partner to Insurance companies, AIFs, Banks, and NBFCs. It is a small-cap company which came into existence in the year 1988.
- CAMS Share Price: ₹2,500.35
- Market Cap: ₹11,788.50 Cr
Things to Consider Before Investing in Monopoly Stocks
Monopoly stocks can help you generate potential gains but you need to be careful while selecting them.
The perks of being a monopoly business don’t always translate into the returns generated by a monopoly’s stock (as evidenced by the likes of BHEL).
Thus, you must understand the following factors before investing in monopoly stocks:
- The business model of the company
- Primary sources of revenue
- Products and services
- Competition and industry progress
- Debt to equity ratio
- Company management
A company may have a monopoly but its finances and management need to be known and evaluated before you become a shareholder.
Conclusion
Investing in the best monopoly stocks can give you a decent chance at creating wealth. Monopolies hold a position of exceptional worth within their domain and thus, face little to no competition.
Before investing in monopoly stocks, you must conduct thorough research as even the best shares carry a degree of risk.
On Dhan, we’ve got everything you need to carry out your research, right from all fundamentals to the financials of every stock.
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