Best Monopoly Stocks in India

Last Updated on Sep 15, 2023 by Anjali Chourasiya

Table of Contents

Best monopoly stocks in India – Updated September 2023

Name	Sub-Sector	Percentage of market share in a segment	Market Cap (Rs. in cr.)	Close Price (Rs.)	PE Ratio	5Y CAGR (%)
ITC Ltd	FMCG – Tobacco	77% in cigarettes	5,57,669.01	447.20	29.06	8.52
Nestle India Ltd	FMCG – Foods	96.5% share in the cereal industry	2,13,339.54	22,127.05	89.24	17.10
Coal India Ltd	Mining – Coal	82% in coal production	1,71,909.31	278.95	6.10	-0.29
Hindustan Aeronautics Ltd	Aerospace & Defense Equipment	100% in defence manufacturing	1,36,520.38	4,082.70	23.43	34.96
Hindustan Zinc Ltd	Mining – Diversified	78% in the zinc industry	1,35,189.08	319.95	12.86	2.10
Pidilite Industries Ltd	Diversified Chemicals	70% share in adhesive	1,28,322.98	2,523.75	100.78	17.78
Marico Ltd	FMCG – Personal Products	73% in oil products	75,516.72	584.45	58.00	11.64
Indian Railway Catering and Tourism Corporation Ltd	Online Services	100% in ticketing business	57,392.00	717.40	57.06	–
Bharat Heavy Electricals Ltd	Heavy Electrical Equipments	67% in the power equipment sector	48,696.66	139.85	102.01	12.65
APL Apollo Tubes Ltd	Building Products – Pipes	50% share in the pre-galvanised and structural tube industry	47,992.10	1,730.50	74.77	62.25
Container Corporation of India Ltd	Logistics	68.52% in cargo carrier	44,697.83	733.60	38.08	7.68
Central Depository Services (India) Ltd	Stock Exchanges & Ratings	59% in depository business	14,534.91	1,390.90	52.67	39.96
Computer Age Management Services Ltd	Diversified Financials	70% within the mutual fund industry	12,765.84	2,604.60	44.75	–
Indian Energy Exchange Ltd	Power Trading & Consultancy	95% in the short-term electricity contracts in India	12,466.97	140.20	40.76	19.60
Praj Industries Ltd	Construction & Engineering	60% in the ethanol plant installation industry	10,869.38	591.65	45.33	43.79
Multi Commodity Exchange of India Ltd	Stock Exchanges & Ratings	92% in India’s commodities exchange sector	9,095.57	1,786.85	61.06	18.27

Note: The stocks are listed according to their market cap, from highest to lowest. The data is from 13th September 2023.

Details of top 8 monopoly stocks of 2023

ITC Ltd

Founded in 1910, ITC is an Indian conglomerate company diversified into sectors such as FMCG, software, hotels, speciality papers, paperboards, packaging and agribusiness. The company has 13 businesses in 5 segments and exports its products to 90 countries worldwide.

Over the last 5 yrs, the revenue growth has averaged 10.11%, vs the industry average of 9.99%.
The stock shows good signs of profitability and efficiency but lags behind in terms of financial growth.
There are no red flags found in the stock.

Nestle India Ltd

The large-cap company, Nestle India is an Indian subsidiary of the Swiss multinational company Nestlé. The company’s products include food, beverages, chocolate, and confectioneries. Nestle was founded in 1959.

As per the Tickertape Scorecard, the profitability score of Nestle India Ltd is 8 out 10, showing good signs of profitability and efficiency.
The stock seems to be overvalued vs the market average. However, there are no red flags.

Coal India Ltd

This large-cap company is an Indian central public sector undertaking under the ownership of the Ministry of Coal, Government of India. Coal India is the largest government-owned coal producer worldwide.

Over the last 5 yrs, the revenue growth has averaged 10.84%, which is equal to the industry average. The same pattern can be observed for net income, debt-to-equity ratio, current ratio, and free cash flow.
The stock shows good signs of profitability and efficiency but lags behind in terms of financial growth.
There are no red flags found in the stock.

Hindustan Aeronautics Ltd (HAL)

Founded in 1940, HAL is an Indian state-owned aerospace and defence large-cap company. It is one of the largest and oldest aerospace and defence manufacturers globally.

Over the last 5 yrs, the revenue growth has averaged 8.21%, vs the industry average of 5.88%. The stock is also ahead of its industry average in terms of net income. However, in comparison between the industry’s debt-to-equity ratio and current ratio to the HAL, the latter lags behind.
As per the Tickertape Scorecard, the stock scores 8.3 out of 10 in terms of profitability, showing good signs of profitability and efficiency. However, the stock’s performance, valuation, and growth score are average.
There are no red flags found in the stock.

Hindustan Zinc Ltd (HZL)

The large-cap mining company is engaged in the mining and smelting of zinc, lead and silver metal in India. It was founded in 1966.

Over the last 5 yrs, the stock is underperforming in terms of revenue and net income in comparison to its industry average for both parameters. The same trend can be seen for its debt-to-equity ratio and free cash flow growth. On the contrary, the current ratio has been 305.45%, vs the industry average of 295.6% during the same period.
The stock has a profitability score of 9 out of 10. However, the stock is overvalued and lags behind in terms of performance and growth.
The stock has a moderate number of red flags.

Pidilite Industries Ltd

Founded in 1959, Pidilite Industries is an Indian adhesive and glue manufacturing company.

Over the last 5 yrs, the stock is lagging in revenue and net income growth compared to the industry average. On the other hand, the stock’s debt-to-equity ratio and current ratio are higher than the industry average.
The stock is currently in an average position in terms of performance, while it lags behind in financial growth. However, in terms of profitability, the stock shows good signs of profitability and efficiency, with a score of 7.5 out of 10.
There are no red flags found in the stock.

Marico Ltd

The large-cap company, Marico, founded in 1990, is a consumer products company operating in the beauty and wellness space. The company’s principal products include edible oils and value-added hair oils. The well-known brands include Saffola, Livon, Parachute, Hair & Care and Nihar.

Over the last 5 yrs, the stock has been ahead of its industry average in revenue, net income, debt-to-equity ratio, current ratio, and free cash flow growth.
As per the Tickertape Scorecard, the stock is average in terms of performance and lags behind in financial growth. However, the stock has an above-average profitability score, 7.8 out of 10.
There are no red flags found in the stock.

Indian Railway Catering and Tourism Corporation Ltd (IRCTC)

This large-cap company is an Indian public sector undertaking that provides ticketing, catering, and tourism services for the Indian Railways.

Over the last 5 yrs, the stock has been ahead of its industry average in revenue, net income, debt-to-equity ratio, and free cash flow growth. During the same period, the current ratio has been 172.5%, vs the industry average of 325.81%.
The stock has a profitability score of 8.5 out of 10. However, the stock is overvalued and among the low performers. The financial growth of the stock has been moderate for a few years.
There are no red flags found in the stock.

What are monopoly stocks?

It is called monopoly competition when there is no or less market competition due to a single seller’s presence. Stocks of those companies that don’t have competition or very few are called monopoly stocks. These companies usually control the market and are solo or large players in the market.

For example, Indian railways. IRCTC is the only railway service provider of railways service in India. And also, they have control over their service prices.

Is it good to invest in monopoly stocks in India?

Monopoly companies have less or no competition in the market. This gives them a big market share, becoming the market leaders. In such cases, the companies can offer good profits to investors. Monopoly stocks can offer good profits when held for a long time. However, you must check their historical performance, management, and future goals before deciding.

FAQs

What makes a company a monopoly business?

In the market, when there is a single or limited seller of a product or service with high demand and where the primary seller gets to decide the price of the product or service, it is considered that the company is a monopoly company.

What are the top large-cap monopoly stocks in India?

There are different monopoly stocks in India, as listed above. According to the market cap, the top three large-cap monopoly stocks in India are ITC, Nestle and Hindustan Zinc.