Monopoly stocks are those stocks that are considered to be essential for the success of a company. They are typically large, well-established companies with a substantial market share. Some of the best monopoly stocks in India include IRCTC, Nestle India, Asian Paints, etc.
These companies have a strong track record of growth and are well-positioned to continue growing. They have a broad reach in the Indian market and are expected to benefit from the growing demand for consumer goods in the country.
Here is a list of top monopoly companies in India every investor should look out for!
List of Top Monopoly Stocks in India
Monopolies have a dominating position in the market thanks to their significant competitive advantage. These firms are exceedingly challenging to compete with and maintain the largest market share for their goods and services.
Here we explore the Indian monopoly stocks that rule their respective markets.
IRCTC is a top company with the best monopoly shares in India. The company is the only player in the market. IRCTC’s monopoly gives it a competitive advantage over other companies, and it is well-positioned to capitalize on the growing demand for rail transportation in India.
Want to Invest in IRCTC? Check out the Share Price of IRCTC on SMC
IEX is one of the top monopoly stocks to buy in India. IEX is the Indian power exchange, the only power exchange in the country. IEX is a fully automated, computerized exchange. It is a monopoly in the power trading business in India. IEX has been operational since 2008 and is based in Mumbai. IEX is a powerful trading platform for electricity trading between utilities and generators. IEX is regulated by the Central Electricity Regulatory Commission (CERC).
Want to Invest in IEX? Check out the Share Price of IEX on SMC
ITC has a strong market share in the tobacco, paper, and packaging industries and is also one of the largest consumer goods companies in the country. ITC’s share price has been steadily rising over the past few years and is expected to continue.ITC is a large and diversified company with a strong presence in rural and urban markets. The company’s products include cigarettes, food, personal care, and home care products. ITC is also one of the largest advertisers in India and has substantial brand equity.
ITC’s share price is expected to rise, making it a good investment for long-term investors.
Want to Invest in ITC? Check out the Share Price of ITC on SMC
Pidilite Industries is another one of the best monopoly companies in India. The company’s share price rose by 10.4% last year and is now trading at a price-earnings ratio of 104.6 (As of Nov 2022).Pidilite Industries is India’s market leader in adhesives, sealants and construction chemicals. The company’s products are used in various industries, including construction, automotive, electronics, packaging and footwear. Pidilite Industries is an excellent long-term investment option for conservative investors.
Want to Invest in Pidilite Industries? Check out the Pidilite Industries Share Price on SMC
Marico is one of the top monopoly stocks to buy in India. The company’s shares are trading at a price-to-earnings ratio of 52.38 and a price-to-book ratio of 19.14 (As of Nov 2022).The company’s long-term growth prospects look strong as it is well-positioned to benefit from the rising disposable incomes and growing consumerism in India. Marico has been investing heavily in its brands and expanding its distribution reach to tap into the growing demand for its products. The company’s shares will continue to outperform the market in the long run.
Want to Invest in Marico? Check out the Share Price of Marico on SMC
Nestle is a global business with its headquarters in Switzerland. Nestle India Limited is one of its wholly-owned subsidiaries. The Company’s primary market is the food industry. The Company, the biggest FMCG company in India, has a solid market position in most market segments.
The Company is the largest food and beverage company in India and is known for its flagship brands like Maggi, Nescafe, and Kitkat. Britannia Industries is one of the leading biscuit manufacturers in India, with a strong portfolio of brands like Good Day, Tiger, and Bourbon.
Want to Invest in Nestle? Check out the Share Price of Nestle on SMC
Founded in 1966, Hindustan Zinc is involved in lead mining and smelting. They are responsible for supplying 78% of India’s total zinc production. The company is the sole integrated producer of zinc, silver and lead in India and is one of the lowest-cost zinc producers in the world.
The Dow Jones Sustainability Index’s Asia Pacific region placed it first in the Metals and Mining Category for 2019.
Want to Invest in Hindustan Zinc? Check out the Share Price of Hindustan Zinc on SMC
Next on our list is Borosil Renewables. It is another company with the top monopoly shares in India. The company is a leading player in the Indian renewable energy sector and has a strong presence in the solar, wind, and biomass segments.
Borosil Renewables has a strong project pipeline and a complete order book, which provides visibility for solid growth in the coming years. Borosil Renewables is well-positioned to benefit from India’s growing demand for renewable energy.
Want to Invest in Borosil Renewables? Check out the Share Price of Borosil Renewables on SMC
Asian Paints is India’s largest paint manufacturer and the third largest in Asia, with a presence in over 15 different nations.
With offerings in the paints and coatings business with a market share of 58%, the firm has a comprehensive product portfolio with a wide variety of goods for both the industrial and consumer markets.The company has a strong network of over 4,000 dealers and a broad distribution reach and is well-positioned to benefit from the growing demand for paints and coatings in India.
Want to Invest in Asian Paints? Check out the Share Price of Asian Paints on SMC
In the Indian defence industry, Hindustan Aeronautics Ltd. is another outstanding monopoly stock. Hindustan Aeronautics manufactures aeroplanes and helicopters in addition to doing repairs and upkeep on these types of aircraft and helicopters. HAL is a crucial player in India’s defence program since it is the sole Indian company focusing on producing aircraft and providing maintenance and associated services. This is because the only Indian corporation that boasts these skills is HAL.
Want to Invest in HAL? Check out the Share Price of HAL on SMC
Long-term profits on monopoly stock investments can be pretty significant. It does, however, come with considerable danger. So be sure to examine the company’s finances, the management, and critical measures like the price-to-earnings ratio, earnings per share, return on equity, return on capital used, and debt-to-equity ratio. We hope you got an idea of the best monopoly stocks in India.
You do not want to lose all of your money, so before making any investment decisions, be aware of your investment goals, risk tolerance, and time horizon.
Disclaimer: The provided information is solely for educational purposes. Investments in the stock market are prone to risk; thoroughly read all relevant documents or consult an expert before investing.