In this article, we have discussed about the top 10 monopoly stocks in India or you can say the top 10 monopoly multi-bagger stocks. We have analyzed the business, advantages, financials, growth opportunities, positives, and negatives of the company.
We have covered the in-depth analysis of the monopoly stocks in India. so that you will have a better idea about the company.
What is Monopoly?
Monopoly means, holding the majority of the market share, or there is no competition for the company. For example, Asian paints is a monopoly stock in India. Asian paints have competition from Berger paints, but still, Asian paints hold the majority of the market share. Another Example is IEX, IEX doesn’t have any competition at all. IEX is the first and largest power exchange in India and has a dominant market share of over 98%.
Also read: Reliance share price target 2022, 2025, 2030.
Monopoly stocks in India
let’s discuss about the top 10 monopoly stocks in India. The monopoly stocks discussed below are not in the order of best to worst. All these companies are good, don’t assume that the company mentioned first is better than Others. We have just randomly mentioned the monopoly stocks in India.
1.IEX
IEX stands for Indian energy exchange, the company was started in the year 2008.
Everyone knows that in the commodity market gold, silver, and crude oil are traded. But most people don’t know that electricity is also traded.
IEX is an electricity trading platform, in IEX electricity is traded. Power generating companies will sell the power and the companies or governments which require electricity will buy it. IEX is used as a trading platform for buying and selling electricity. Same as NSE and BSE.
For example, if any company requires power for 10 days, the company will place a buy order at a Certain Price. If any power producing company is ready to sell power which is enough for 10 days, at the price, the company placed its order, they will accept the order to supply power for 10 days. It is the same as buying and selling shares. If you want to buy a share at a particular price, then you will place an order, if any sellers are ready to sell their shares at the price you placed your order, the order gets accepted and shares will be allotted to you. If there are no sellers who are ready to sell their shares at the price you placed your order, the order will be rejected at the end of the day and you will not be allotted any shares.
Also read: ITC share price target 2022, 2025, 2030.
Negatives
Central Electricity Regulatory Commission decides the transaction charges for trades on IEX. IEX doesn’t have the right to decide the prices of transaction charges to increase its profitability. So the company can only increase its profitability by increasing the volumes.
Financials
The company has a market cap of over 17 thousand 400 crore rupees, which is a mid-cap stock. Company stock price is grown at s CAGR of 29% over the last four years, sales growth of 12.62% over the last 5 years, and profit growth of 16.35%. The company is debt-free and the ROE of the company over the last 5 years is 48.24% and ROCE is 67.49%.
If we observe the shareholding pattern, the public is holding 37.86%, FII’s Are holding 36.66%, DII’s are holding 25.47% and promoters are holding 0%.
Also read: Urja Global share price target 2022, 2025, 2030.
Important Financial Ratios Explained : ROCE, ROE, ROA, EPS And PE.
2.PIDILITE
Pidilite is a famous brand in the Adhesive sector. There is no competition for Pidilite. If any object or anything is broken in our house, the first thing everyone does is, go to a shop and buy either FEVICOL, FEVI KWIK or FEVISTICK. This is what the brand image of the company is.
The Journey Of PIDILITE
The company is started in the year 1959. At the time when Pidilite started the Fevicol brand, the industry has not shown any interest in adhesive or sealants. Pidilite slowly started growing in that sector and came to a position where even if anyone thinks about adhesives, the first brand that comes to their mind is Fevicol or any other brands of Pidilite. From 1959, they started releasing new products like M-Seal, DR Fixit, Roff, and many more.
In 1993, the company was listed on exchanges with a market valuation of rupees 60 crores. In the year 2000, the company introduced M-Seal, in the year 2001, the company introduced DR Fixit, and in the year 2004, the company reached a milestone of 1000 crore rupees market cap and also released the product called ROFF.
Also read: Tata power share price target 2022, 2025, 2030.
Growth opportunity
The company has divided its products portfolio into three categories called Core, Growth, and Pioneer. Core products mean, the main brands of the company, which has a strong or majority of the market share. The core products are Fevicol brands. The company has fewer growth opportunities in this category. Because the company already holds the majority of the market share and generates a constant stream of cash or revenue.
The second category is growth, which means there is a possibility of growth in the future. The important brand in this category is DR Fixit and some other brands are International Geographies, Nina Percept, and WD-40. The third category is pioneer, which means the company is the first to enter into those segments. The pioneer products are ROFF, JOWAT, TENAX Etc. These products are used for tiles, floors, and walls.
Positives
With their quality products and innovative marketing strategies, Pidilite is the dominant company in the adhesive sector and created a huge brand value among the people. The company is also constantly entering into different sectors and entering into new products and segments. Pidilite has 3 fully equipped in-house R & D centers in India. The company has also increased its spending on R & D by 185% since 2015.
Also read: HFCL share price target 2022, 2025, 2030.
Financials
The company has a market cap of over 1 lakh 20 thousand crore rupees, which is a large-cap stock. The company stock price is grown at a CAGR of 27.2% over the last five years, sales growth of 5.61% over the last five years, and profit growth of 7.69%. Debt to equity of the company is 0.01, which is negligible. The ROE of the company over the last five years is 25.13% and ROCE is 34.98%.
If we observe the shareholding pattern, promoters hold 70.13%, FII’s holds 12.08%, Public holds 10.64% and DII’s holds 7.15%. Overall, financially the company is very strong.
3.Nestle
Nestle products have a separate fan base. Nestle is the world’s largest food company in terms of revenue. In the year 2020, Nestle’s revenue was around 5.7 lakh crore rupees, almost twice the revenue of Coca-Cola.
Products And Category
In Infant Cereals, Nestle has a brand called Cerelac with a market share of 96.5%. In the infant formula category, Nestle brand Lactogen Nan has a market share of 66.6%. The tea creamer category, Nestle brand Everyday has a market share of 44.1%. In instant noodles, Nestle’s most famous brand in India Maggie has a market share of 59.2%. In the ketchup & sauces category, Nestle brands have a market share of 20.5%. Instant Pasta category, Nestle has a market share of 73.7%. In the white & wafers category, Nestle brands like KitKat, Milky Bar, and Munch have a market share of 63.4%. Finally, in instant coffee, Nestle brand Nescafe has a market share of 50.5%.
Not only this, Nestle has a presence in a lot of other categories with a lot of other brands. But above are the categories where Nestle holds the majority of the market share.
As Nestle has good brand value, everyone will prefer their brands even in the future.
Financials
The company has a market cap of 1 Lakh and 94 thousand crore rupees, which is a large-cap stock. The company stock price is grown at a CAGR of 26.1% over the last five years, sales growth of 10.35% over the last five years, and profit growth of 29.89%. Debt to equity of the company is 0.02, which is negligible. the ROE of the company over the last five years is 58.17% and ROCE is 85.54%. These numbers are huge.
If we observe the shareholding pattern, promoters are holding 62.76%, the public is holding 16.88%, FII’s are holding 12.43% and DII’s are holding 7.92%. overall, financially the company is very very strong, and financial numbers are awesome.
Monopoly Stocks In India-4.Asian Paints
Asian paints is the industry leader in the paints sector for the past 50 years. Third largest paint company in Asia and the ninth-largest paint company in the entire World. Asian paints have a presence in over 60 plus countries, the company has 26 paint manufacturing facilities, over 200 plus scientists, 430 plus color idea stores in India, and has 70,000 plus dealer network in India.
Products Category
Asian paints have their products in four categories. The categories are interior paints, exterior paints, metal finishes ( enamels ), and wood finishes. Not only paints, but They also manufacture a varied range of products like adhesives, smart care range of waterproofing products, bath fitting, sanitary ware, kitchens, wardrobes, sanitizers, and surface disinfectants.
But the majority of their business is from paints, 98% of the revenues are from paints business. The company has a market share of 60% in decorative paints. For the last few years, Asian paints is strongly holding its market share. The reason for this is, the company does not only just manufacture and sell paints. According to customer preference, they are constantly working on innovating or developing better paints.
Growth
If we see a few years back the mindset of people is different, people usually don’t give much importance to decorate their homes. Now the people are very interested in decorating their houses in the best way possible. and spending more money on interior and exterior paints, to get a good-looking feel. So the customers are moving towards the branded paints side.
There is a lot of growth possibility for Asian paints, as the people are moving towards the decorative interior and exterior paints and are also willing to spend more.
Financials
The company has a market cap of 3 lakh and 16 thousand crore rupees, which is a large-cap stock. The company stock price is grown at a CAGR of 23.2% over the last five years, sales growth of 9.37% over the last five years, and profit growth of 13.4%. The debt to equity of the company is 0.00, which means the company is debt-free. The ROE of the company over the last five years is 27.22% and ROCE is 39.05%.
If we observe the shareholding pattern, promoters are holding 52.79%, FII’s are holding 20.72%, the public is holding 19.18%, and DII’s are holding 7.3%. Overall, financially the company is very strong.
Monopoly Stocks In India-5.HUL
Hindustan Unilever is the largest FMCG company in India. At least one person in our house is using HUL products. Hindustan Unilever is the leader in more than 90% of its businesses. The company is no 1 in skin cleansing, skincare, haircare, fabric wash, household care, tea, healthy food drinks, and ketchup.
Products
If we see the products of Hindustan Unilever, almost every product of HUL is famous and has a good brand value in the market. Some of the brands of HUL are BRU, Dove, Lux, Surf Excel, Vim, Lakme, Sunsilk, Tresemme, Comfort, Rin, Lipton, Red Label, Hamam, Lifebuoy, Pears, Taaza, Taj Mahal, Domex, and Wheel. These brands have a presence in different categories. for example, in Surf Excel brand, soaps as well as liquids, in Dove brand, soaps as well as shampoo. 20% of their business is growing at a pace of 2X.
Some of the brands acquired by the company are Horlicks, Indulekha, Adityaa Milk, and V Wash.
The company has a market share of 54% in the skincare segment, 55% market share in dishwashing detergents, 47% market share in shampoo, and 37% market share in the personal care segment.
Financials
44% of the revenues are from beauty and personal care, 34% of the revenues are from home care, 19% of the revenues are from foods & refreshments and 3 of the revenues are from others.
The company has a market cap of 6 lakh and 39 thousand crore rupees, which is a large-cap stock. The company stock price is grown at a CAGR of 24.7% over the last five years, sales growth of 8.17% over the last five years, and profit growth of 13.97%. Debt to equity of the company is 0, which means the company is debt-free. The ROE of the company over the last five years is 69.07% and ROCE is 95.95%. These are very very good numbers.
If we observe the shareholding pattern, promoters are holding 61.9%, FII’s are holding 15.11%, the public is holding 12.44%, and DII’s are holding 10.75%. Overall, financially the company is very strong.
Monopoly Stocks In India-6.CDSL
Before 1996, if anyone bought shares, the shares are given in the form of papers. Papers are very hard to store and paper can be damaged over a long period or can be stolen. In 1996, SEBI has decided to De-Materialize the shares and given the duty to depositories. At that time NSDL started their operations to De-Materialize the paper shares into electronic format to store.
In 1999, CDSL started its operations. CDSL started its operations Lately, but in 2016, CDSL outperformed NDSL and now holds more market share than NSDL. not only shares but also De-materialize securities like mutual funds and bonds. But the main business is mainly De-materializing of shares.
CDSL also has 3 subsidiaries, their business is also the same as CDSL. One of the subsidiaries De-materialize insurance policies, the other subsidiary handles the EKYCs and the third subsidiary handles the services related to Aadhar.
Financials
The company has a market cap of over 13 thousand and 400 crore rupees, which is a mid-cap stock. The stock price of the company is grown at a CAGR of 37% over the last 5 years, sales growth of 14.45% over the last 5 years, and profit growth of 17.35%. The company is debt-free. The ROE of the company over the last five years is 16.33% and ROCE is 22.08%.
If we observe the shareholding pattern, the public is holding 38.65%, DII’s are holding 33.04%, FII’s are holding 8.31%, and Promoters are holding 20%.
Monopoly Stocks In India-7.CAMS
The business of CAMS in simple words is, CAMS is like a mediator between mutual funds and the investor. For example, if you have Invested in any mutual fund, some units will be allotted to you. CAMS records or will take care of how many units are allotted, are the units allotted to the correct account, and will record all the changes over time.
If you are doing SIP in any mutual fund, these services are also offered by CAMS. Also offers De-materialization of insurance policies. All the data of mutual funds is managed by CAMS, like who is buying/selling, how many units they have, and records all of these activities. CAMS also provides software solutions for mutual funds.
Financials
The market cap of the company is 16 thousand and 500 crore rupees, which is a mid-cap stock. The stock price of the company is grown at a CAGR of 36.4% over the last 2 years.
sales growth of 11.92% over the last 5 years, and profit growth of 21.13% over the last 5 years. The company is debt-free. The ROE of the company over the last five years is 36.83% and ROCE is 53.11%.
If we observe the shareholding pattern, promoters are holding 30.96%, FII’s are holding 25.11%, public holds 22.11% and DII’s are holding 21.82%.
Monopoly stocks in India-8.IRCTC
Everyone knows about IRCTC. So, instead of knowing about the business model of IRCTC. Let’s know about the segment-wise revenue of IRCTC.
45.89% of the revenues are from catering services, 9.76% of the revenues are from Railneer. Railneer is the water bottles sold by IRCTC in railway stations. 27.24% of the revenues are from internet ticketing, 12.96% of the revenues are from tourism and 4.15% of the revenues are from state Teerath. State Teerath means, IRCTC provides packages for Teeraths or for visiting divine places and temples.
No 9 Is APL Apollo Tubes
APL Apollo tubes manufacture structured steel tubes. In simple terms, they buy steel from steel manufacturers and convert that steel into different structures for construction. APL Apollo tubes have a 50% market share in this segment. APL Apollo tubes competitors have a lot of debt in their balance sheet. Whereas, APL Apollo tubes debt to equity is less than 1. This gives APL Apollo tubes an edge over Its competitors.
Unless the steel manufacturers enter into this segment and start manufacturing structured steel tubes, there is no competition for APL Apollo tubes.
No 10 Monopoly Stock In India CONCOR
Container Corporation of India is a public sector undertaking, managed by the Indian ministry of railways. The company was set up in 1996, with the aim of containerizing cargo transport in the country. Concor core businesses include the Cargo carrier, Terminal operator, Warehouse operator, and MMLP operation. the company holds a market share of 68% in domestic business.
Financials
The market cap of the company is 42 thousand and 800 crore rupees, which is a mid-cap stock. The stock price of the company is grown at a CAGR of 10.6% over the last five years.
sales have grown at a CAGR of 1.52% over the last five years, and profit growth of -11.95%. The company is debt-free. The ROE of the company over the last 5 years is 8.48% and ROCE is 11.57%.
If we observe the shareholding pattern, promoters are holding 54.8%, FII’s are holding 24.94%, DII’s are holding 16.27% and the public is holding 3.99%.
conclusion
This is all about the top 10 monopoly stocks in India. Every company we have discussed is very strong in terms of fundamentals and financials.
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