- Date : 10/11/2021
- Read: 6 mins
Are you looking for the best monopoly stocks in India? This article will take you through the top-rated stocks that hold the largest market share.
Have you been looking for a way to earn profits from the stock market? Maybe you are looking to invest in companies that have a regular revenue guarantee. In which case, harnessing monopoly stocks will be beneficial for your portfolio.
The global stock market revenue in the second quarter of 2021 was USD 37.7 trillion. So, investing in stocks will be a profitable decision. However, when analysing the Indian stock market, you will come across numerous monopoly stocks. These offer a competitive advantage and have historically gained good revenue.
This article will take you through the best monopoly stocks in India.
Investing in the right share
In India, some companies dominate the market share. Due to this, their stocks have been dubbed monopolies. Let’s take a look at some of these dominant companies.
1. APL Apollo
- 50% market share in the pre-galvanised and structural tube industry
- Market Capital – Rs 201.71 billion
- NSE: APLAPOLLO
- One-year stock price CAGR – 156%
- P/E Ratio – 41.22
- Share price as of 3rd November 2021, 11:21 AM- Rs 838.50
APL Apollo has had a very steady presence in the last 90 days. Due to this, the economic sensitivity is low, and investors will find it a positive investment.
- 70% market share in the adhesives industry
- Market Capital – Rs 1.18 trillion
- NSE: PIDILITIND
- One-year stock price CAGR – 56%
- P/E Ratio – 91.55
- Share price as of 3rd November 2021, 11:23 AM - Rs 2348
The volatility index for Pidilite Industries is below average, and it has been steady for the last 90 days. This stock has strong recognition in the industry and will help you penetrate the market and gain ROI.
- 70% market share within the mutual fund industry
- Market Capital – Rs 147.90 billion
- NSE: CAMS
- One-year stock price CAGR – 69%
- P/E Ratio – 64.84
- Share price as of 3rd November 2021, 11:23 AM - Rs 2967
CAMS is a great way to earn ROI with long-term investment. Moreover, the strong fundamentals ensure a long 10-to-15-year investment option for numerous investors.
- 60% monopoly in the ethanol plant installation industry
- Market Capital – Rs 62.14 billion
- NSE: PRAJIND
- One-year stock price CAGR – 336%
- P/E Ratio – 54.17
- Share price as of 3rd November 2021, 11:25 AM - Rs 353.85
Profits generated by Praj industries have tripled in the last few months. Therefore, this would be the best time to acquire a share in the company.
5. Asian Paints
- 39% monopoly in market share for decorative paints
- Market Capital – Rs 3.01 trillion
- NSE: ASIANPAINT
- One-year stock price CAGR – 43%
- P/E Ratio – 92.48
- Share price as of 3rd November 2021, 11:26 AM - Rs 3122.10
Asian Paints have had a positive EPS growth of 18%. Therefore, every investor is looking to grab its shares for long-term ROI successfully. This stock is 75% less volatile than any other monopoly stock in the country.
- 100% monopoly in market share for the Indian rail network
- Market Capital – Rs 679.68 billion
- NSE: IRCTC
- One-year stock price CAGR – 228%
- P/E Ratio –228.86
- Share price as of 3rd November 2021, 11:27 PM - Rs 830.50
This company operates the entire Indian Railway system, hence giving it monopoly power. Even with plunges in the past sessions, IRCTC can offer you a stellar run in the market and reward you with huge gains.
On top of that, it turned to a 1:5 stock split which will help enhance the capital market's liquidity. Therefore, the shareholder base will increase, and it will become affordable.
Investing in monopoly stocks - Things to consider
Have you ever played the board game Monopoly? If you have, you would already know the lessons it can teach you about the financial world. Similarly, monopoly stocks require a lot of analysis and patience before you can reap good ROI. So keep the following considerations in mind before investing in companies with the largest market shares in India.
Take care of your money: Aimlessly investing in stocks will only lead to a depreciation in your bank balance. So, you need to determine some financial obligations and have a plan.
Always be patient: Monopoly stocks offer huge ROI if you keep your investment solid for the long term. Due to this, you need to have a mindset that allows you to be patient with these stocks.
Focus on the cash flow: In the financial world, companies tend to be volatile in revenue generation. However, if you keep a close eye on the cash flow for monopolies, you might see good revenue generation due to the market share they hold.
If you focus on the parameters mentioned above, you can easily acquire the best monopoly stocks. But you need to do thorough research, understand what you stand to gain, and draw up a financial roadmap. To help you along, we have shortlisted the following options: APL Apollo, Pidilite Industries, CAMS, Praj Industries, and Asian Paints. Each of these companies boasts more than 30% market share in its segment and is comparatively stable.
What are you waiting for? Enhance your portfolio with monopoly stocks today!
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Disclaimer: This article is intended for general information purposes only and should not be construed as investment or tax or legal advice. You should separately obtain independent advice when making decisions in these areas.