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Posted on  October 24, 2024 under  by Ayush Maurya

Best Monopoly Stocks in India 2024 - No Competition Stocks

Are you tired of watching your investments rise and fall with market volatility? Are you looking for companies that dominate their sectors and face almost no competition? You’re not alone! Monopoly stocks might just be the solution you’re searching for.

In this blog, we’ll uncover the best monopoly stocks in India—companies with a strong grip over their industries and provide consistent returns, making them ideal for long-term investors.

List of Best Monopoly Stocks in India 2024

Investing in stocks with no competition lets you own shares in companies that dominate their industries with little to no competition. In this section, we’ll explore some of the best monopoly stocks in India for 2024, each holding a strong market position and offering steady growth opportunities.

Top Monopoly Stocks in IndiaMarket ShareCMP (₹)
1. MCX92% in India’s commodities exchange sector6431.05
2. CAMS70% in the mutual fund industry4400.45
3. Pidilite Industries70% share in adhesives3127.45
4. APL Apollo Tubes50% in pre-galvanised and structural tubes1,530.25
5. CDSL59% in depository business1,460.85
6. CONCOR68.52% of cargo carrier services844.40
7. Praj Industries60% in the ethanol plant installation industry735.55
8. Marico73% in oil products657.00
9. Hindustan Zinc78% in the zinc industry513.60
10. ITC73% of oil products481.80
11. Coal India82% in coal production468.35
12. BHEL67% in power equipment232.80
Data as of 22/10/2024 - No competition stocks in India

These companies are leaders in their respective fields, making them the best monopoly stocks in India for investors looking for steady growth and minimal competition.

Why Invest in Monopoly Stocks?

Monopoly stocks offer a unique advantage: they operate in industries with little to no competition. This dominance allows these companies to maintain strong pricing power, consistent profits, and steady growth. In the Indian stock market, the best monopoly stocks are often considered safer bets for long-term investors due to their control over large portions of their respective markets.

These companies typically enjoy higher profit margins, government backing, and strong brand recognition, making them resilient to economic downturns. Whether ITC’s near-complete control over the cigarette market or Coal India’s massive share in coal production, monopoly businesses in India are well-positioned for steady performance. With monopoly business stocks in India like these, investors can expect reduced volatility and more predictable returns over time.

Overview of the Best Monopoly Stocks in India

These companies control most of their industries, giving investors stable growth. Known as no-competition stocks, they have few rivals, making them great for long-term investments. Let’s take a closer look at some of the best monopoly stocks in India and why they are leaders in their sectors.

1. MCX (Multi Commodity Exchange)

MCX is one of the best monopoly stocks in India and also India's largest commodity exchange, handling over 92% of the market's total trading volume. It plays a crucial role in commodities like gold, silver, and crude oil. The company benefits from its well-established platform and growing market for commodity trading in India. With the increase in commodity demand globally, MCX is well-positioned for future growth.

  • CMP: ₹6431.05
  • Market Coverage: 92%
  • Market Cap: ₹32797 crore
  • ROCE: 7.15%

Returns: 

1Y Return (%)3Y Return (%)5Y Return (%)
177.2258.53474.71
Data as of 22/10/2024

2. CAMS (Computer Age Management Services)

CAMS holds a dominant 70% market share in India’s mutual fund services industry. It provides essential services to mutual funds, including transaction processing and record keeping. With the growing popularity of mutual fund investments in India, CAMS is expected to see steady growth in the future.

  • CMP: ₹4400.45
  • Market Coverage: 70%
  • Market Cap: ₹21950 crore
  • ROCE: 48.4%

Returns: 

1Y Return (%)3Y Return (%)5Y Return (%)
75.9443.12NA
Data as of 22/10/2024

3. Pidilite Industries

Pidilite Industries is one of the best monopoly stocks in India; it is the leader in the adhesives and sealants market, with Fevicol being the most recognizable product in Indian households. The company holds 70% of the market share and continues to innovate in the chemical industry. With the rise in construction and home improvement, Pidilite is set to grow even further.

  • CMP: ₹3127.45
  • Market Coverage: 70%
  • Market Cap: ₹159437 crore
  • ROCE: 29.7%

Returns: 

1Y Return (%)3Y Return (%)5Y Return (%)
31.7835.01131.63
Data as of 22/10/2024

4. APL Apollo Tubes

APL Apollo is the leading structural steel tube industry player, holding 50% of the market share in pre-galvanized and structural tubes. The company’s products are widely used in the construction, infrastructure, and automotive sectors, giving it strong future growth potential as these industries expand.

  • CMP: ₹1,300
  • Market Coverage: 50%
  • Market Cap: ₹42507 crore
  • ROCE: 25.2%

Returns: 

1Y Return (%)3Y Return (%)5Y Return (%)
-10.4687.431003.52
Data as of 22/10/2024

5. CDSL (Central Depository Services Limited)

CDSL holds 59% of the depository market in India, providing electronic services for securities transactions. As more investors move towards digital trading, CDSL’s role in India’s financial infrastructure becomes increasingly crucial.

  • CMP: ₹1,460.85
  • Market Coverage: 59%
  • Market Cap: ₹30532 crore
  • ROCE: 40.2%

Returns: 

1Y Return (%)3Y Return (%)5Y Return (%)
117.52117.361321.75
Data as of 22/10/2024

6. CONCOR (Container Corporation of India)

CONCOR is also one of the best monopoly stocks in India, which dominates India's cargo carrier services with a 68.52% market share, specializing in rail transportation of containers. It is crucial for India's logistics and trade, connecting major ports and industrial hubs. As India ramps up its export capacity, CONCOR is positioned to benefit from increased freight movement.

  • CMP: ₹844.40
  • Market Coverage: 68.52%
  • Market Cap: ₹51448 crore
  • ROCE: 13.9%

Returns: 

1Y Return (%)3Y Return (%)5Y Return (%)
19.2724.1538.89
Data as of 22/10/2024

7. Praj Industries

Praj Industries is a market leader in ethanol plant installation, holding a 60% share in this growing industry. With India’s push for renewable energy and ethanol blending in fuel, Praj is set to play a key role in the nation’s energy transition goals.

  • CMP: ₹735.55
  • Market Coverage: 60%
  • Market Cap: ₹13511 crore
  • ROCE: 29.3%

Returns: 

1Y Return (%)3Y Return (%)5Y Return (%)
28.56127.9559.39
Data as of 22/10/2024

8. Marico

It is one of the leading FMCG companies in India, with Marketplace brands like Parachute and Saffola commanding about 73% market share in the edible oil segment. The products of Marico are household names in India, and trying to innovate in health and wellness businesses. Given the fact that Indian consumers are increasingly switching to healthier lifestyles, Marico is well-set for sustained growth.

  • CMP: ₹657
  • Market Coverage: 73%
  • Market Cap: ₹85337 crore
  • ROCE: 43.1%

Returns: 

1Y Return (%)3Y Return (%)5Y Return (%)
21.3116.7566.29
Data as of 22/10/2024

9. Hindustan Zinc

Hindustan Zinc is one of the best monopoly stocks in India and is a major player in the zinc production industry, holding 78% of the Indian market share. The company specializes in mining and refining zinc, which is essential for galvanization and manufacturing industries. With the growing demand for zinc in infrastructure development, Hindustan Zinc’s future outlook is positive, making it a strong choice among monopoly business stocks in India.

  • CMP: ₹513.60
  • Market Coverage: 78%
  • Market Cap: ₹217036 crore
  • ROCE: 46.2%

Returns: 

1Y Return (%)3Y Return (%)5Y Return (%)
66.4359.33144.69
Data as of 22/10/2024

10. ITC

ITC is a well-diversified company, but it holds a near-monopoly in India's cigarette industry, controlling 77% of the market. The company is also expanding its FMCG, hospitality, and agriculture businesses. Despite global concerns about tobacco, ITC continues to dominate, and its diversification strategy ensures long-term growth potential.

  • CMP: ₹481.80
  • Market Coverage: 77%
  • Market Cap: ₹602491 crore
  • ROCE: 29.4%

Returns: 

1Y Return (%)3Y Return (%)5Y Return (%)
9.92103.6393.57
Data as of 22/10/2024

11. Coal India

Coal India is the largest coal producer in the world and dominates the Indian coal sector with an 82% market share. The company is crucial for India’s energy needs, providing coal to power plants and industries. With India's focus on increasing domestic energy production, Coal India is set to benefit from long-term demand and government support.

  • CMP: ₹468.35
  • Market Coverage: 82%
  • Market Cap: ₹288754 crore
  • ROCE: 63.6%

Returns: 

1Y Return (%)3Y Return (%)5Y Return (%)
49.92166.26124.31
Data as of 22/10/2024

12. BHEL (Bharat Heavy Electricals Limited)

BHEL is one of India’s largest power equipment manufacturers, controlling 67% of the market. The company provides infrastructure and equipment for power generation, transmission, and other utilities. As India works towards energy security and modernisation of its power grid, BHEL’s services remain in high demand.

  • CMP: ₹232.80
  • Market Coverage: 67%
  • Market Cap: ₹81097 crore
  • ROCE: 3.37%

Returns: 

1Y Return (%)3Y Return (%)5Y Return (%)
85.94235.93349.42
Data as of 22/10/2024

What Are Monopoly Stocks?

Monopoly stocks dominate their respective industries, often enjoying little to no competition. These companies have significant market control, allowing them to set prices, maintain steady revenues, and outperform during economic challenges. A monopoly in the stock market can arise from various factors such as government regulations, high entry barriers, or the company's unique ability to outperform its peers. Monopoly business stocks in India represent a more stable and less volatile investment option for investors.

Investing in monopoly stocks is like taking a bet on companies that dominate their industries, ensuring long-term profitability. From coal and commodities to financial services, such stocks can be found in every other sector, thus finding a place in the core portfolios of investors for long-term growth.

Best Monopoly Stocks in India 2024: Top Picks for Dominating the Market

What Makes These Companies ‘Monopolies’?

Several factors make these companies monopolies, ensuring they maintain a dominant position in their industries. Here's why the best monopoly stocks in India stand out:

  • Government Control or Support: Some companies, like Coal India or BHEL, benefit from significant government ownership or backing. This support helps them maintain their dominance, similar to what we see in some of the Maharatna CPSE companies that are key players in their sectors.
  • High Barriers to Entry: Industries like commodities or infrastructure are hard to break into. Companies such as CONCOR and MCX operate in sectors where the infrastructure and capital needed are enormous, making it difficult for competitors to enter and compete effectively.
  • Brand Loyalty and Consumer Trust: Some companies dominate due to strong brand loyalty. For instance, Pidilite’s Fevicol is nearly synonymous with adhesives in India, while ITC holds significant power in the cigarette market. These companies use their strong brand presence to maintain a near-monopoly in their fields.
  • Technological and Operational Efficiency: Certain businesses dominate through innovation and technology. CAMS, which manages mutual fund operations, has a clear lead due to its technological edge in handling a large portion of the market, making it difficult for others to compete.

Risks of Investing in Monopoly Stocks

Though monopoly stocks may seem like a safe bet, they come with their own set of risks. Here are some key challenges investors should know when considering monopoly business stocks in India.

  • Regulatory Risks: Governments may introduce new regulations or anti-monopoly laws that can impact the profitability of these companies.
  • Market Disruption: New technologies or unexpected competitors could disrupt even the most dominant monopoly stocks, posing a risk to investors.
  • Overreliance on One Sector: Monopoly stocks often rely heavily on a single product or industry, which can expose them to sector-specific downturns.
  • Economic Downturns: While monopolies tend to be stable, severe economic conditions can still affect their profitability, especially in sectors tied to consumer spending.
  • Price Control Issues: In sectors where the government controls pricing, like Coal India, the company’s ability to increase prices and profits can be limited.

Factors to Consider When Choosing Monopoly Stocks

The following points will help you assess the best monopoly stocks in India for your portfolio.

  • Market Share: Always check how much control a company has over its industry. A higher market share means less competition and more potential for stable returns.
  • Industry Growth: Look for monopolies in sectors expected to grow, such as renewable energy or financial services, to ensure long-term growth potential.
  • Regulatory Environment: Understand the government’s role in the company’s operations. Stocks like Coal India are subject to regulatory decisions, which could affect their future performance.
  • Profit Margins: Higher profit margins often indicate the company has significant pricing power, strongly indicating a true monopoly.
  • Long-Term Strategy: Companies with strong future goals, like Praj Industries in renewable energy, are more likely to sustain their monopoly status in evolving markets.

Future Outlook for Monopoly Stocks in India 2024

Monopoly stocks in India are expected to remain strong in 2024, especially in sectors like infrastructure, commodities, and renewable energy. As the Indian economy grows, companies like Coal India, MCX, and Praj Industries will continue to benefit from government policies to boost domestic production, infrastructure projects, and renewable energy initiatives. These industries have high entry barriers, allowing existing monopoly businesses to maintain their dominance and expand market share.

Additionally, sectors like mutual fund services (CAMS) and digital depository services (CDSL) are expected to grow steadily with India’s increasing focus on financial inclusion and digitisation. India's future outlook for monopoly stocks remains positive, with strong growth potential in sectors crucial to the country's development.

Best Monopoly Stocks in India 2024: Top Picks for Dominating the Market

Who Should Invest in the Best Monopoly Business in India?

  • Long-Term Investors: Monopoly stocks provide stability and consistent growth, making them ideal for those with a long-term investment horizon.
  • Risk-Averse Investors: If you’re looking for safer investment options with reduced volatility, monopoly stocks are a good choice due to their market dominance.
  • Dividend Seekers: Many monopoly companies, like Coal India and ITC, offer regular and attractive dividends, making them suitable for income-focused investors.
  • Sector-Specific Enthusiasts: Investors interested in sectors like infrastructure, energy, or financial services will find solid opportunities in monopoly businesses dominating these fields.
  • Portfolio Diversifiers: Adding monopoly stocks can balance your portfolio by providing exposure to companies with stable revenue streams and less competition.

How to Invest in the Best Monopoly Stocks in India?

Investing in the best monopoly stocks in India can be a strategic way to ensure steady returns from companies that dominate their industries. Here’s how you can begin:

  • Open a Demat Account: Start by opening your Demat account with us. The process is simple, fast, and hassle-free.
  • Research Monopoly Companies: Our platform provides comprehensive research tools to analyze the top monopoly stocks, helping you evaluate their market performance, financials, and future growth prospects.
  • Place Your Trades: Our easy-to-use platform lets you buy and sell monopoly stocks with real-time data, ensuring you make well-informed investment decisions.

Conclusion

The best monopoly stocks in India continue to offer a unique advantage for investors due to their strong market dominance, stable revenue streams, and minimal competition. Companies like Coal India, MCX, ITC, and Hindustan Zinc are set to remain key players in their sectors, benefiting from both government support and growing industry demand.

As the Indian economy expands, these businesses are well-positioned to capitalise on future opportunities, making them ideal for long-term investors. By adding monopoly stocks to your portfolio, you can ensure steady returns while reducing exposure to market volatility.

Frequently Asked Questions

1. What are the best monopoly stocks to buy now?

The best monopoly stocks in India include Coal India, MCX, Hindustan Zinc, ITC, and CAMS. Each of these companies dominates its industry, providing stable growth and returns. For example, Coal India controls 82% of India’s coal production, making it a top pick for long-term investors.

2. Are monopoly stocks safe for long-term investments?

Yes, monopoly stocks are generally considered safer for long-term investments. Due to their minimal competition, market control, and steady revenue streams, these companies are less affected by economic downturns and market volatility, making them a good option for risk-averse investors.

3. Can government policies affect monopoly businesses?

Yes, government policies can have a significant impact on monopoly stocks. Some companies, like Coal India, benefit from government backing, while others might face challenges if new regulations or anti-monopoly laws are introduced.

4. What sectors typically have monopolistic companies in India?

In India, sectors like commodities, infrastructure, financial services, and industrial manufacturing often have monopolistic companies. Examples include MCX in commodities trading and ITC in the cigarette market, which holds large shares in their industries.

5. Which stock has a monopoly in India?

Several stocks have a monopoly in India, including Coal India, which controls over 80% of coal production, and MCX, which holds a 92% share in the commodities exchange sector. These companies control a large share of their industries, making them highly stable.

6. Which company has 100% monopoly in India?

IRCTC has nearly a 100% monopoly in India's online railway ticket booking system. This government-owned company manages all online train reservations in the country. Its complete control over this market makes it one of the most secure investments in its sector.

7. Is CDSL a monopoly?

Yes, CDSL holds around 59% of the market share in the depository business in India, giving it a strong lead. Although it faces competition from NSDL, CDSL still dominates the sector.

Disclaimer: This article is intended for educational purposes only. Please note that the data related to the mentioned companies may change over time. The securities referenced are provided as examples and should not be considered as recommendations.
Ayush Maurya

Written by Ayush Maurya

Ayush is a seasoned financial markets expert with over 3years of experience. He has a passion for breaking down complex financial concepts into simple, digestible terms. Through his 50+ articles, Ayush has helped countless individuals navigate the often intimidating world of finance.

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