List of Top 10 Monopoly Stocks in India

Monopoly stocks means “stocks with No Competition”.

Imagine heading to a market to purchase mangoes, and you find that only one vendor is selling them. In this scenario, you’re left with no choice but to buy mangoes from that specific vendor, granting them a monopoly over the sale of mangoes in that market

What are monopoly stocks?

Monopoly stocks are the stocks of those companies that have negligible competition in their sector. These companies usually dominate that sector. Monopoly stocks are considered more profitable than any other stocks because they have a higher tendency to grow in their field.

List of Top Monopoly Stocks in India

• IRCTC
• ITC
• Nestle
• Hindustan Aeronautics
• Bharat Heavy Electricals Ltd.
• Coal India
• Central Depository Services (India) Ltd(CDSL)
• Marico Ltd.
• Hindustan Zinc
• Pidilite Industries

1. IRCTC

Indian Rail Catering and Tourism Corporation commonly known as IRCTC, is the public sector company that provides ticketing, catering, and tourism services for the Indian Railways. IRCTC is the only entity that provides ticket service in India which provides it a 100% monopoly in the Rail Sector.

Indian Government has acquired around 50% share in IRCTC. Due to its strong brand recognition and widespread network, it is one of the top PSUs in India.

• Market Cap: 69,572 Cr
• Share price: 868

2. ITC(India Tobacco Company)

ITC was established in 1910 with the name of Imperial Tobacco of India. Later, It was changed to India Tobacco Company Limited. It has business in many sectors including tobacco manufacturing, Hotels, food processing, and financial services. In 2022, With a net profit of Rupees 15,000 crore and gross sales of Rupees 90,000 crore, ITC became the most profitable company in India.

ITC has a monopoly in Tobacco Manufacturing. The Company is involved in 13 businesses in five segments. In India, ITC covers around 73% of stakes in Tobacco. ITC has given around 60% returns in the last five years.

• Market Cap: 5,69,075 Cr
• Stock Price: 457

3. Nestle

Nestle is a food and beverage company with food brands like Nescafe, KitKat, Maggie, Nespresso, and Toll House. This diversified product portfolio allows Nestle to cover a wide range of customer preferences and help capture a large market segment. Nestle has a monopoly in the infant food Industry.

Nestle has acquired several well-established brands that make it dominant in the market.

• Market Cap: 4,26,424 Cr
• Share Price: 25,720

4. Hindustan Aeronautics

HAL or Hindustan Aeronautics is one of the largest and oldest defence manufacturers in India. It was established in 1940. Its major business is in Helicopters and aircraft repair and maintenance.

HAL is the only company in India that specializes in aircraft repair and maintenance, It is the leading defense company. It has a monopoly in producing Aeroplanes.

• Market Cap: 1,88,735 Cr
• Share price: 2808

5. Bharat Heavy Electricals Ltd.(BHEL)

BHEL was established in 1956 with the help of soviet techniques. It is the largest power generation equipment manufacturer in India with a network of 16 manufacturing Units. The government of India owns BHEL. It is the largest company in India which focuses on Research and development. It invests more than 1500 Crore in R&D.

Power and the industry are the two major segments of BHEL. It has given more than 450% returns in the last year making it one of the top growing public sector companies in India. The company has a monopoly in engineering and manufacturing.

• Market Cap: 63,374 Cr
• Share Price: 188

6. Coal India

Coal India is the biggest coal producer of coal all over the world. Besides coal production, it takes care of coal washeries. The government of India Owns it and administrated by the Ministry of Coal. According to experts, the demand for coal is going to decline in the upcoming years due to the rapid development of the renewable sector in the country. Still, Coal India will remain a significant player in Industry.

The company is diversifying its portfolio and adopting sustainable changes to match the pace of evolving technologies and trends. Coal India covers around 88% of coal production in India which makes its monopoly in Industry. The company has given 167% returns in the last three years to its investors.

• Market Cap: 2,25,248 Cr
• Share Price: 375

7. Central Depository Services (India) Ltd(CDSL)

CDSL is Known as Central Depository Securities Ltd., the largest depository of India in terms of opening demat accounts. Depositories are those organizations that hold securities and assets of investors in trading. Due to the increasing demand for demat accounts, CDSL market shares have grown from 40% in FY14 to 70% in FY22. The company has seen a wonderful increment of around 86% account opening in FY22 in Comparison to 56% in FY14.

CDSL has tie-ups with top brokers like Zerodha, Groww, 5paisa, and Angel One. Currently, CDSL has around 6.5 Cr accounts which are less as compared to the population of India. With the Increasing interest of people towards the stock market, it is expected to see a huge growth in opening trading accounts in the upcoming year. Due to the duopoly in the market, CDSL can be the largest beneficial. CDSL has given around 750% returns in the last five years to their investors.

• Market cap: 20,000 Cr
• Share Price: 1850

8. Marico Limited

Marico is an Indian consumer-based product company that operates in various segments, including snacking, beverages, edible oil, detergents, and personal care products. The company has a monopoly in Hair Oil Products. Its products include Parachute, Hair&Care, Nihar.

It is one of the largest FMCG companies in India operating in more than 50 countries. Marico has given around 400% returns in the last year to their investors. Due to the increasing purchase power of consumers, there is a high possibility of growth of the company.

• Market Cap: 70,000 Cr
• Share Price: 536

9. Hindustan Zinc

Hindustan Zinc is a subsidiary of Vedanta Limited. Hindustan Zinc is the leading zinc mining and smelting company in India. Indian government holds around 29.5% shares in Hindustan Zinc. The company has constantly in profit for the last 10 years. Due to the increasing demand for infrastructure materials, the demand for zinc and lead is expected to grow in India. It can be beneficial for HZNC.

The company’s financial performance can remain in profit in upcoming years. Hindustan Zinc has given more than 200% return in the last 10 years. Due to the US-China trade war, metal stocks were heavily affected. The effect of the trade war is reflected in the financial performance of metal companies including Hindustan Zinc.

• Market Cap: 1,31,724 Cr
• Share Price: 315

10. Pidilite Industries

In our daily lives, if we want to buy something and go shopping. Then there is a very high chance that we end up buying Fevicol. Fevicol is one of the most popular adhesive product that we all uses. Pidilite is the parent company of Fevicol founded in 1959. Pidilite is famous for making adhesives, sealants, and construction chemicals.

Back in the 1950s, carpenters used fat-based glues which required heat. It required a lot of effort even for a small task. Fevicol removed this extra effort and became a strong alternative to it. Pidilite acquired around 70% market share and created a monopoly in the adhesive manufacturing sector. Pidilite has given more than 1000% return in the last Ten Years to their Investors.

• Market Cap: 1,37,365 Cr
• Share Price: 2705

Why invest in Monopoly Stocks?

Monopoly stocks are generally the leading stocks in their sector. They are more stable and have limited competition. Most of the monopoly Stocks pay dividends to their investors which makes it an ideal choice for those who want to earn some passive income.

Due to their monopoly, they can charge high prices for their products which can lead them to a higher profit margin. These companies are generally stable so an Investor can expect a steady return. Due to low volatility, it is ideal for risk-averse Investors.