What are monopoly stocks?

Monopoly competition occurs when a single seller dominates the market, resulting in less market competition. Monopoly stocks are those of companies that do not have competition or have very few competitors. It is common for these companies to control the market and play either a solo role or occupy a large market share.

Let’s analyze some of the Top Monopoly stocks in India in their own sectors-

Coal India:

Kolkata, West Bengal, serves as the headquarters of Coal India, which was founded in 1973. This is one of the monopoly stocks in India. They engage in coal mining and production. The business provides its goods to businesses in the steel, cement, cement products, and power industries. They are present in eight Indian states' markets. They generate over 80% of the nation's total coal production. The last traded price of Coal India was Rs. 246, and the company has a total market size of Rs. 151,634 Cr. The company's debt to equity ratio is modest. It is therefore almost debt-free. They offer a respectable 6.91% dividend yield, and their three-year average return on equity was 45.2%. The three-year stock price CAGR is 5%.

Indian Energy Exchange:

The first energy exchange in India is called IEX. The IEX has a market capitalization of Rs. 12,748 crore, and its current price is Rs. 142. The company has nearly completely eliminated its debt and produced a CAGR of 24.2% during the last five years. The company has a healthy dividend payout of 52.4% and a return on equity over the past three years of 46.9%.

Computer Age Management Services (CAMS):

The business offers distributor services, investor services, and asset management companies (AMC). CAMS has a market capitalization of Rs. 12,020 Cr. and a current price of Rs. 2,453. The last five years' CAGR is 21.1%, and the last three years' return on equity is 45.2%. Additionally, the business has been able to keep its dividend distribution at 80.6%.

Indian Railways Catering and Tourism Corp (IRCTC):

Given that they offer cuisine and hospitality services aboard trains and in stations, IRCTC plays a significant part in the Indian Railways. IRCTC has a market valuation of Rs. 60,680 crore and a price of Rs. 758 right now. The company's debt-to-equity ratio is modest, and during the past five years, it has generated a CAGR of 23.8%.

Pidilite Industries:

Pidilite Industries produces DIY items, sealants, building chemicals, polymer emulsions, craftsmen's products, and adhesives. Fevicol and M-seal are the most widely used brands. They comprise 70% of the market. Every home in India makes use of it. The Pidilite industries have a total market valuation of Rs. 134,598 crore, and the price on the market right now is Rs. 2,648. The business is anticipated to deliver strong returns in the upcoming quarter and has a low debt-to-equity ratio.

Marico:

Marico Company produces cosmetics and health care items. The two most widely used brands are Saffola and Parachute. More than 25 different countries are where the company operates. The current market price of Marico is Rs. 539, and its total market capitalization is Rs. 69,716 Cr. The company maintained a dividend payout of 88.4% and had a ROE for the past three years of 36.0%.

Asian Paints:

The business, which was founded in 1942, is India's biggest paint manufacturer. Their company operates in 15 different nations. They produce metal sanitary ware as well as lacquers, thinners, and varnishes. Asian Paints has a 305,154 billion rupee market worth, and its share price is now $318. In the last three years, the business has maintained a respectable return on equity of 25.8% and a dividend payout of 52.6%.