List of Monopoly Companies in India – Top Monopoly Stocks

List of Monopoly Companies in India – Top Monopoly Stocks

Monopoly Companies in India: How many examples of monopolistic businesses can you think of in India? Today, we look at one of Warren Buffett’s favorite types of business monopolies but from the perspective of the Indian market.

A monopoly is a term used to describe the type of business that dominates its respective markets owing to the enormous advantage they have over its competitors. It’s hard to compete with these businesses, and they always get the biggest market share for the goods and services they offer.

However, when it comes to investment, the stocks of these firms are referred to as MOAT stocks. The term “moat” refers to a ditch often dug around medieval castles. This was done as part of the defensive preparations, so it would be more difficult for attackers to storm the castle.

The moat around the castle should be as broad and deep as possible to provide a maximum defense. In the business world, a moat is a barrier to entry that prevents new competitors from entering the market.

These barriers can take the form of large amounts of capital, restrictions imposed by the government, or an advantage that a company possesses that makes it difficult for other businesses to compete with them. Similarly, a monopoly is also a significant moat.

The Top Monopoly Companies in India

Let us look at some of the top monopoly companies in India:

Monopoly companies in India #1 – IRCTC

IRCTC

The Indian Railways use the services of the Indian Railway Catering and Tourism Corporation, abbreviated as IRCTC, for ticketing, catering, and tourism. Although it started as an entity that the government entirely controlled, its shares are now listed on the National Stock Exchange.

Since only one entity is tasked with running Indian Railways, IRCTC wields the unrivaled power of a monopoly.

The government announced its intention to privatize this industry in stages, explaining its reasoning in its announcement.

IRCTC
CMP715.05Market Cap (Cr.)57204
EPS11.18Stock P/E63.77
ROCE51.33ROE39.93
Face Value2Book Value27.97
Promoter Holding67.4Price to Book Value25.56
Debt to Equity0.08Dividend Yield0.49
Net Profit Margin35.48Operating Profit Margin40.96

Monopoly companies in India #2 – Coal India Limited

Coal India

Coal India Limited is a public sector organization that is engaged in the industry of mining and processing coal. The company has a market share of 82%. That, of course, is an impressive market share percentage. It is the corporation that produces the most coal globally and does it via its seven companies that produce coal.

The current percentage of the government’s interest in the company is 66.13 percent. This makes the company one of the top monopoly companies in India.

Coal India
CMP229.15Market Cap (Cr.)141218.93
EPS42.4Stock P/E5.3
ROCE54.29ROE43.61
Face Value10Book Value91.46
Promoter Holding66.13Price to Book Value2.45
Debt to Equity0.07Dividend Yield7.54
Net Profit Margin15.85Operating Profit Margin27.97

Monopoly companies in India #3 – Hindustan Zinc Limited

Hindustan Zinc Limited

HZL is an Indian integrated mining and resources company that produces zinc, silver, cadmium, and lead. Hindustan Zinc Limited has a market share equivalent to 78 percent in the primary zinc business.

The company is the fourth biggest zinc-lead smelter in the world and the second-largest zinc-lead miner. India Coal, Hindalco, and NALCO are some of HZL’s industry rivals.

Currently, the government of India has 29.5 percent of the company’s shares, while Vedanta Limited, the company’s parent company, holds 64.9 percent.

Hindustan Zinc
CMP319.65Market Cap (Cr.)135062.33
EPS26.99Stock P/E11.93
ROCE37.34ROE28.75
Face Value2Book Value74.03
Promoter Holding64.93Price to Book Value4.32
Debt to Equity0.09Dividend Yield11.35
Net Profit Margin32.52Operating Profit Margin54.71

Monopoly companies in India #4 – Nestle Cerelac

Nestle Cerelac

A baby at least 6 months old may start taking Cerelac, a quick cereal. Nestle is the market leader in baby nutrition and products intended to replace breast milk or other types of milk worldwide.

In India, the company has been given the title of “The Most Valuable Food Brand.” Nestle Cerelac has around 96.5 percent of the market share in the Indian stock market.

Nestle India
CMP19605.6Market Cap (Cr.)189028.8
EPS224.55Stock P/E80.59
ROCE147.06ROE113.08
Face Value10Book Value241.48
Promoter Holding62.76Price to Book Value81.07
Debt to Equity0.12Dividend Yield1.01
Net Profit Margin15.77Operating Profit Margin22.15

Monopoly companies in India #5 – HAL

HAL

Hindustan Aeronautics Limited (HAL) is an Indian aerospace and defense corporation owned by the Indian government and has its headquarters in Bangalore. More than seventy-nine years ago, Hindustan Aeronautics Ltd.

Was first established as Hindustan Aircraft Ltd. Since then, the company has been actively engaged in the industry. The government owns approximately 75% of the company, making it one of Asia’s most prominent aerospace enterprises.

HAL
CMP2732.5Market Cap (Cr.)91371.39
EPS175.11Stock P/E15.61
ROCE30.49ROE29.37
Face Value10Book Value623.58
Promoter Holding75.15Price to Book Value4.27
Debt to Equity0Dividend Yield1.88
Net Profit Margin20.66Operating Profit Margin24.26

Monopoly companies in India #6 – Pidilite Industries

Pidilite Industries | Monopoly Companies in India

Pidilite Industries is a multinational brand based in India and specializes in adhesives. It offers a wide variety of goods, including building chemicals, adhesives, sealants, and waterproofing solutions, as well as arts and crafts supplies, industrial resins, and polymers, amongst other things.

This company’s continued success may be attributed to its listening to customer feedback and actively responding by improving existing offerings and developing innovative new ones. This corporation currently controls roughly 70% of the market share available.

Pidilite Industries
CMP2697.1Market Cap (Cr.)137093.3
EPS25.56Stock P/E105.54
ROCE26.13ROE20.23
Face Value1Book Value129.9
Promoter Holding69.94Price to Book Value20.67
Debt to Equity0.1Dividend Yield0.38
Net Profit Margin12.23Operating Profit Margin17.26

Monopoly companies in India #7 – BHEL

BHEL | Monopoly Companies in India

Manufacturing and engineering are the primary focuses of Bharat Heavy Electricals Limited, which the Indian government wholly controls. It is the power generation equipment manufacturing company with the largest market share in India.

BHEL is concerned with the design, engineering, production, development, testing, servicing, and commissioning of a wide variety of products and services for the essential facets of the economy, such as oil and gas, power, defense, transportation, renewable energy, etc.

These are just some of the industries that BHEL serves. The government of India owns 63.17 percent of the company, while the remaining shares are sold openly on the National Stock Exchange and the Bombay Stock Exchange.

BHEL
CMP73.95Market Cap (Cr.)25749.85
EPS2.19Stock P/E33.8
ROCE2.93ROE1.67
Face Value2Book Value75.45
Promoter Holding63.17Price to Book Value0.96
Debt to Equity0.22Dividend Yield0.57
Net Profit Margin2.07Operating Profit Margin3.59

Monopoly companies in India #8 – Marico

Marico | Monopoly Companies in India

Marico is a popular Indian FMCG company, although Saffola and Parachute are its most successful products. The corporation has come a long way in 30 years. Safola has a 73% market share in premium refined oil products. “Parachute” has a 59% market share.

These generate 90% of their revenue, making it one of India’s top monopoly companies.

Marico
CMP485.35Market Cap (Cr.)62753.66
EPS9.54Stock P/E50.91
ROCE42.73ROE36.64
Face Value1Book Value29.03
Promoter Holding59.48Price to Book Value16.72
Debt to Equity0.14Dividend Yield1.91
Net Profit Margin13.19Operating Profit Margin18.06

In Closing

In this article, we covered some of the top monopoly companies in India. Monopoly or huge Moat stocks are gold mines for value investors. Investing in a moat stock may generate considerable long-term rewards.

Like other high-value stocks, they are expensive and might lead to reduced returns or losses.

Experts in this market are available on FinGrad to help you make the right investment strategy. It is always wise to have an investment strategy that brings about a higher profitability percentage.

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