Best Monopoly Stocks to Buy in India – List of Top 10 Monopoly Industry Shares of 2022

Have you ever thought of investing in Best Monopoly Stocks in India or stocks of such companies which do not have competitors in the market? You must have, isn’t it?

As no or less competition means a higher profit margin and, in short, ruling the market or the industry, which is referred to as monopoly in economics or finance.

So, this article will help you understand how the companies which are having a monopoly in their industry in India work and how you can invest in them, why you should consider them in your portfolio, and of course, the Top Monopoly Stocks that you can invest in.

What are Monopoly Stocks?

Before we get into the Best Monopoly Stocks to buy let us understand what these monopoly stocks are and how these name has come up.

So, for starting any business and to grow and thrive in an economy, certain requirements need to be taken care of.

The primary requirements are capital, government permissions, demand in the market for the product and services to be offered by the business, business advantages, and similar factors.

A company or business becomes a monopoly where the capital requirement is so huge that other people trying to enter the same industry/ market cannot afford that much capital. The second factor is government permission.

Even if there is capital for starting the business, government restrictions on sensitive sectors like nuclear power, mining industry, metals, defense, and other such industries become barriers to the new entrants in the business which help existing companies to become a monopoly in the sector.

So, in short, a monopoly stock is the stock of a company which is having the highest market share in the industry, it can be even the only company in that industry, for instance, IRCTC, has no competitors in the industry, obviously owing to both capital requirement criteria and government regulations.

These businesses have huge benefits as they run a whole industry and thus they set rules for the industry as well.

However, with great powers, comes great responsibilities these companies are the most respectable in the country, as they have duties towards the nation as well.

At present, there is a handful of Top Monopoly Companies in India in which you can invest your money via stock market investments. In the next sections, we will find the same.

Best Monopoly Stocks in India – List of Top 10 Monopoly Sector Stocks to Buy Today

Check out the Monopoly Share Price & Ranking of Best Monopoly Shares to buy Today or Tomorrow or for Long Term –

As you can refer to the table above, the Best Monopoly Shares in India include Hindustan Unilever which has the highest market capitalization amongst all the Monopoly Shares to Buy Today and anytime.

Then it is followed by ITC which has the second highest market capitalization and then there are Asian Paints.

Apart from market capitalization, we also have evaluated the percentage of return generated by these stocks in terms of a 1-year change in their share price and also we have determined the change in the past six months.

While these three are the primary factors that we considered to rank these monopoly stocks, there are other factors as well like highs and lows in the last 52 weeks and others.

Now, let’s look at these stocks individually and understand why they can be considered for investment.

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Hindustan Unilever – Top Monopoly Share to Buy

The top Monopoly Share to Buy is Hindustan Unilever as per its market capitalization at present. It is popularly known as HUL and it touches every household in India daily with its range of products and services.

The company is the largest in India when it comes to the fast-moving consumer goods sector. It has had leadership in this industry for years.

At present, the chairman and Non-executive director of the company are Nitin Paranjpe, and the MD and CEO are Sanjiv Mehta.

Products and services

The products of HUL are used across the country by every household and some of the popular products of this company out its innumerable products are lifebuoy, Surfexcel, Lux, Rin, Wheel, Sunsilk, Pepsodent, Lakme, Close-up, Kissan, Kwality Walls and the list can go on and on.

In short, most of the home & personal care products and food & beverages products you see in the market and use in your household are of HUL.

Why you should invest in this stock?

In the industry of fast-moving consumer goods, this company is leading for years even when there are few brands and popular companies in the market.

It retains its monopoly for years with the highest market capitalization. The reasons for buying this Best Monopoly Stocks in India are –

• Its high Piotroski score suggests the fundamentals of the company be very strong.
• Its ROE is another striking factor to look at while investing in it
• For investments, a company with no debt can be a boon and HUL has no debt in its financial structure.
• The annual net profits have been on the rise for the past two years so is the book value per share
• The revenue of the company has been increasing for the past four quarters consecutively
• Another significant factor to consider is increasing shareholding in the company by FIIs and FPIs.

Check out Best Stocks to Buy from Other Sectors & Industries

ITC – Monopoly Stocks in India

ITC has a whopping monopoly in their traditional business which is cigarettes. However, ITC is not only known for that, it is also a market leader in the hotel and FMCG industry, followed by Paperboard, packaging, specialty papers, and similar products.

However, that’s not all, it has its presence and significant market share in the IT industry and agri-business as well.

It is headed by Sanjiv Puri at present and ITC is recognized as the top 10 most valuable brands there are many such accolades in its kitty.

Products and services

This Monopoly Stocks in India has a huge range of products and services which includes popular brands like Ashirvaad, Sunfeast, Bingo, Mint-o, candyman, ITC Master Chef, and a lot more in the Food and beverage segment.

Then under its care segment, there are popular names like Engage, Vivel, Fiama, Nimyle, Nimwash, and Savlon. Under its Education segment, ITC is the manufacturer of everyone’s favorite Classmate copies, papers, and also of Paperkraft.

ITC is also present in the agarbatti and matches segment and one of the common names in every household which is an ITC product is Mangaldeep.

Why you should invest in this stock?

If you are wondering why you consider these Top Monopoly Shares to buy then here are the reasons –

• It has a 77% market share in the Cigarette industry
• The TTM EPS is growing and at present, it is 13.21
• The company has no debt in its financial structure
• Not only the net profit on a quarterly basis is increasing but also the profit margin is increasing yearly
• The FIIs and FPIs are increasing their shareholding in ITC continuously which is a sign of the potential of the company
• This is a large-cap stock which means it will give you stable returns and you can earn good dividends as well as its current dividend yield is 3.73%.

Asian Paints – Top 10 Monopoly Stocks

The 3^rd of the Top 10 Monopoly Stocks is Asian Paints. This company is known for its high-quality paint and related products and solutions since 1942.

It is the 3^rd largest company in entire Asia and 9^th in the world when it comes to the paint industry, and of course, the leader in India.

The company is chaired by Mr. Deepak Satwalekar, who is the non-executive Chairman and Independent Director of the company. The MD and CEO of Asian Paints at present are Mr. Amit Syngle.

Products and services

While we know that Asian paints are the largest paint manufacturer in India, there are also other segments of the business with which it deals in.

• It manufactures 2200 shades, and interior and exterior textures as well.
• It has different paints for interior walls and exterior walls, then for kid’s rooms and spaces.
• There are stencils which you can also purchase from Asian Paints,
• Apart from these, there are tile guards, floor guards, textured finishes
• For waterproofing, there are terrace and tanks solutions, even you check their waterproofing solutions for bathrooms, interiors, and others
• The company also offers wood and metal paints which are not readily available from other paint companies
• Asian paint also manufactures and sells brushes, rollers for painting, and other mechanized tools as well.

Why you should invest in this stock?

The prime reasons for buying this stock and tracking Monopoly Share Price is –

• The earnings per share (EPS) on a TTM basis has been growing which signifies the growth of earning potential of the investors. It is presently 36.27.
• The TTM PE is higher than the sector PE which is another positive sign for the investors as it means that the price of the company can go up further
• There is no debt in the company’s financial structure
• The net profit of the firm has been increasing along with the profit margin on a QoQ basis.
• The book value per share has also been improving for the past two years.

Nestle – Best Monopoly Stocks to Buy Today

The 4^th Best Monopoly Stocks to Buy Today is Nestle. It is one of the most popular food companies across the globe and in India, it has a whopping market share in the industry.

It is focused on the production of nutritious foods and is also known for its health and wellness products. Also, it is having a huge experience in the market as it was started in 1866.

At present, the company is headed by Suresh Narayanan, who is the MD and Chairman of the company. Then there is David S McDaniel who is the CFO and Executive Director.

Products and services

Nestle products are very much common and if you check your refrigerator, you may find a few of them as well.

It includes Nescafe, which is one of the most popular coffee brands in India, and Cerelac – which is the most popular baby food in India, it has more than 96% of the market share in the baby food market at present.

Then there are Maggi which is like found in every household, Kit Kat, Milkmaid, and a lot more of such items.

Why you should invest in this stock?

There are multiple reasons for investing in these Top Monopoly Companies in India –

• It has a current dividend yield of 1.02 which is one of the highest in this sector
• The TTM EPS is exponentially high at 219.27 which signifies a huge potential return for the investors
• The TTM PE is way higher than the sector PE
• The company has a very low percentage of debt in its financial structure
• The revenue of the firm has been on the rise for the past 2 quarters consecutively
• This also takes us to the annual net profits which is rising for the past 2 years consecutively
• There are FIIs and FPIs who are increasing their shareholding in the company significantly

Pidilite Industries Ltd.  – Monopoly Stocks to Buy Today

Pidilite Industries, which is our 5^th Monopoly Stocks to Buy Today, is ruling over 70% of the industrial chemical and adhesive market in India.

This company was started back in 1959 when it started with the production of only one product which is still the most popular adhesive in the country which is Fevicol.

However, as time went by, Pidilite established itself in the adhesive industry with multiple products, and it was even when global.

At present, the company is headed by M B Parekh who is the executive chairman and NK Parekh who is the Vice chairman and Bharat Puri is the MD.

Products and services

In the adhesive market, Pidilite has had its monopoly since its inception. At present, it manufactures multiple products in this industry which are M-seal, cyclo, Dr. Fixit which is another highly popular product in India, and Fevicol is always there.

Apart from these well-known products, there are multiple other products as well which include, paper glue, fevistik, crayons, markers, acrylic colors, and a lot more.

Pidilite also offers different waterproofing solutions, flooring, and coating materials, and then there are starch, stain remover, whitener, and brighteners for fabrics. There are many other industrial chemicals and other products that are offered by Pidilite.

Why you should invest in this stock?

The prime reasons for investing in this Monopoly Stocks in India are –

• The net profit of the company has been increasing, and so is the profit margin, every quarter.
• There is minimal debt in the financial structure
• The annual net profits are also spiking
• There is Zero promoters pledge in the company
• The TTM PE is almost double the sector PE which signifies the exceptional potential of the company and the chances of a rise in the share prices.
• The TTM EPS is also high and current it is 26.38

Coal India Ltd. – Top 10 Monopoly Stocks

The 6^th out of the Top 10 Monopoly Stocks is Coal India. There is a clear-cut monopoly of this company on Indian soil as it rules 82% of the market when it comes to coal production in India.

This means the total coal produced in India, 82% of the same is produced by Coal India itself. You may wonder but not just in India, Coal India, is the largest coal producer in the world itself.

The company is headed by Pramod Agarwal who is the chairman of the company, then there is Debasish Nanda who is the director of Coal India.

Products and services

Coal India produces both coking and non-coking coal along with semi-coking coal, washed coal, and beneficiated coal. Other by-products of coal are rejects, middings, and others.

Then Coal India offers coal fines, or coke fines, LTC coke or CIL coke, light oil, heavy oil, tar, and soft pitch as well.

Why you should invest in this stock?

Here is the reason to invest in the Best Monopoly Stocks in India –

• First thing first, Coal India is the largest coal producer across the globe, so the one you can be certain of is stable returns as their products are always in Demand.
• Now coming to the recent fundamentals of the company, then you can see high growth in TTM EPS which suggests good returns for investors
• The profits are also increasing for the past few quarters and the cash flows are improving too
• The FIIs are continuously investing in Coal India which suggests a high growth potential for the company
• ROCE and ROE are also high which suggests efficient utilization of the capital employed and shareholders’ equity.

Hindustan Zinc – Monopoly Share in India

Hindustan Zinc Ltd., which is our 7^th top Monopoly share in India was established in 1966 in Kolkata as Metal Corporation, later the name changed to Hindustan Zinc Ltd.

This was a public sector undertaking company, however, today Vedanta Limited holds 64.9% of its stakes, and the government of India holds 29.5%.

That said, this is the world’s second-largest miner and producer of zinc and lead and in India, it has a whopping market share of 78%.

The company is headed by Kiran Agarwal who is the chairman and Arun Misra the CEO and Whole Time Director.

Products and services

The products of Hindustan Zinc include primarily three types of zinc which are special high-grade zinc which is mainly used in the construction or infrastructure and household appliance making and similar purpose.

Then there is high-grade zinc and then the third one is the prime western zinc. Hindustan Zinc also produces lead in pure form, which gets used in the making of lead-acid batteries, electrodes, ceramic glazes, and others.

Apart from Zinc and Lead which are two of the main products of this company, silver, and sulphuric acid are also produced. Silver which is produced is mainly used for photographic material, jewelry, and making conductors.

While sulphuric acid is used for making dyes, sugar refining, textiles and fertilizers, and others.

Why you should invest in this stock?

This is the 7^th Best Monopoly Stocks to buy for the reasons given below –

• The fundamentals of the company are super strong as suggested by the high Piotroski score
• TTM EPS is growing which depicts the higher return potential for the investors
• The debt percentage in the financial structure is low which is a good thing for the investors again
• ROE is improving which suggests a better return on the shareholders’ equity
• The profits are increasing as well for the past four quarters and so is the revenue
• The dividend yield is quite high suggesting great dividends for the investors
• The FIIs and FPIs are increasing their shareholding which is another great sign of growth.

Hindustan Aeronautics Ltd.  (HAL) – Top Monopoly Stocks to Buy

If any company defines monopoly entirely in India, then it has to be Hindustan Aeronautics Ltd. It has a 100% market share when it comes to the manufacturing of helicopters and aircraft for India and the world.

In 1940, HAL was formed by Walchand Hirachand along with the Government of Mysore. The primary aim of the company was then manufacturing of quality aircraft for the country and especially for the defense system and still it is the same.

The monopoly of this organization is mainly due to the barriers to entry into this market as it is related to the defense system as well. So, this is our 8^th Top Monopoly Stocks to buy in this list.

Products and services

At present, it is a state-owned organization that does everything from designing to fabricating, to assembling, planes, air crafts, helicopters, and also their spare parts.

Some of the most popular aircraft from HAL are light combat aircraft, aero engines, and others. That’s not all, there are other divisions as well, and that are satellite launch vehicles.

Yes, HAL also manufactures polar satellite launch vehicles, Indian remote satellites, geo-synchronous satellite launch vehicles, and others.

There is more to the list, it not only manufactures but overhauls as well the industrial marine gas turbines, and also composites.

Then it manufactures structural sub-assemblies like pylons, drop tanks, and many other critical machines and technologies which are required for keeping the country safe and running.

Why you should invest in this stock?

HAL is the 8^th Monopoly company in India for the reasons below –

• Firstly, a 100% monopoly in this sector can be the prime reason for investing in the stocks of the organization. No competition, no or very less volatility, which leads to generous and stable returns over years.
• Then the TTM EPS growth can be another factor that you can consider
• The ROA is improving for the past two years which is a great sign of growth too
• There is no debt that this company is having
• The operating profits are increasing along with the operating profit margins
• The FIIs and FPIs are taking more interest in the organization and increasing their shareholding as well.

Marico – Best Monopoly Company in India

Marico is one of the top brands when it comes to the FMCG sector. It has around a market share of 73% in oil that we apply or use for cooking. The two main brands that Marico is known for are Parachute’ and ‘Saffola’.

You must have used any of these two or both in your household, as an Indian household cannot be imagined without these two products. It has been present across the country for more than 25 years now.

The company is headed by Harsh Mariwala and Saugata Gupta at present.

Products and services

The most popular products that Marico produces are Parachute coconut oil, Nihar Naturals Uttam coconut oil, and Nihar Naturals coconut oil.

Then there are Saffola’s range of oils like Saffola active, Saffola tasty, Saffola gold, Saffola total, and others. Apart from these most widely used products and other oils of Parachute and Nihar, and Saffola, the company also offers hair serum Livon, Hair & Care Silk n Shine, and other premium hair care products.

In the food and beverage segment, Saffola oats (multiple variants) are there. Then there are grooming products and also skin care products that are offered by this Best Monopoly company in India.

Why you should invest in this stock?

If you are wondering why these Top Monopoly Stocks to buy, then here are the reasons for it –

• Firstly, the company’s annual net profit is increasing for the past two years in a row
• There is a low proportion of debt in the financial structure of the company
• The FIIs and FPIs are increasing their shareholding in the company
• Book value per share of the company has been improving for the past two years
• The dividend yield of the company is quite good and currently, it is 1.81.

IRCTC – Best Monopoly Stocks to Buy

There are another Best Monopoly Stocks to buy that has a 100% monopoly in India and that is IRCTC. The organization went for its IPO in 2019 and as assumed people were just too excited to buy IRCTC stocks.

The company was founded in 1845, 102 years before the independence of the country and it is the world’s largest employer. That is not all, Indian railways are the world’s largest railways as well.

This is a natural monopoly given all the reasons from entry restrictions to capital requirements. However, the government has started privatizing the sector and welcoming private players to take care of certain aspects of IRCTC.

Products and services

If you look at the products and services of IRCTC, then it includes everything that comes under the railways of India. Starting from booking tickets, to processing travel insurances, PNR inquiries, train schedule fixing, connecting journey booking, foreign tourist booking, and what not.

While IRCTC has usual trains for local and inter-city commute, there is a tourism segment of the organization as well.

This includes the luxury train tours which are Maharajas’ Express, Bharat Darshan Special Tourist Trains, Buddhist Circuit Special train, and other special trains.

That is not all as well, as there are tour packages, whether land tour packages, cruise packages, or international and domestic air packages, are all there with IRCTC and they even have event management services as well along with customized tours.

Why you should invest in this stock?

The 10^th out of Top 10 Monopoly Stocks, IRCTC can be a good buy for your investment portfolio because –

• It has a 100% monopoly in the sector
• Increasing returns with the increase in tourism in the country
• Low debt portion in the financial structure
• There is a Zero promoters’ pledge
• Revenues are increasing too.

Container Corporation India – Monopoly Stocks to Buy

The 11^th Monopoly Stocks to buy in India is from Container Corporation India. This company is engaged in the business of transport using the huge container -trucks that you see on the highways.

It has a different division which includes an Air cargo complex, warehousing, container port, logistic park, and others.

There are three main operations that this business carries on that are a carrier, warehouse operator, and terminal operator.

The financials or fundamentals of the company is too strong along with the annual growth in the EPS makes it a good stock for the investment portfolio.

FIIs are increasing their shareholding which is another positive sign of growth. The net profits are increasing as well for the past two years consecutively, and so is the book value per share.

Both ROA and ROE of the company have been increasing in the past two years as well. The TTM PE is also higher than the sector PE which is another sign of potential growth of the share price and thus higher returns are probable for the investors.

BHEL – Monopoly Companies to Buy Today

In the 12^th position of Monopoly Companies to Buy Today, we have BHEL. Bharat Heavy Electricals Limited is the largest enterprise for manufacturing and engineering electrical or energy-related and infrastructure-related products and goods in India.

Its products do not only include equipment for power generation but also fertilizers, refineries, petrochemicals, and others. It mainly caters to 3 sectors which are the Power industry which includes transmission, telecommunications, transportation, and renewable energy, and overseas business as well.

It is headed by Nalin Shinghal at present. The higher than average sector PE of BHEL suggests the potential growth in the stock price of the company. The EPS is also growing on an annual basis which suggests better returns for the investors.

The net profit of BHEL has been increasing so is its profit margin. The company has been getting fair investments from foreign investors as well. There is no promoter’s pledge in the company.

Indian Energy Exchange – Monopoly Stock to Buy Today

Indian Energy Exchange is our 13^th monopoly stock to buy today. This is the country’s first and top electric exchange.

It is an electricity trading platform that is completely transparent, and neutral, spread across the country, automated, and also demutualized. Mr. Satyanarayan Goel heads the company. The dividend yield of the enterprise is good enough and at present, it is 1.16.

The high PE ratio is also a sign of the growth potential of the enterprise. Then the cash flow from operating activities which is increasing indicates the growth of the business as well.

It has been improving for the past two years consecutively. There is no debt in this company which is another plus for the investors. The annual net profits are also increasing for the past 2 years.

Computer Age Management Services (CAMS) – Best Monopoly Stocks in India

When you invest in mutual funds you often receive SMS from CAMS. This is Computer Age Management Services (CAMS) which is the registrar and transfer agency (R&T) for mutual fund houses.

This is a SEBI-registered agency which is our 14th Best Monopoly Stocks in India. The enterprise provides different processing, transfer, and registration services to the investors and the mutual fund houses.

The primary reason for investing in this stock can be its monopoly in the market. There are only a handful of R&T agencies in India and out of them CAMS is one of the top agencies having a huge market share in this sector.

The ROE and RoCE are all increasing which are signs of potential growth of the company. The net profits are increasing as well. The FIIS and FPIs are increasing their shareholding in the company too.

How to identify a good Monopoly Stock for Trading?

If you want to Buy Monopoly Stocks then you need to first find out the one which is suitable for your investment goal.

• Firstly, you can check the stocks given above in the list of top monopoly stocks in India. Out of them, you can choose the one most suitable for you.
• You need to check the market capitalization first, and also the market share of the company. For instance, IRCTC and HAL have 100% market share. Other monopoly businesses in the list above, have around 70%-80% of the market share. So, you need to evaluate that in the first place. You need to see why the monopoly is happening, whether it is a natural monopoly or a man-made one. How effective the monopoly is and whether it is going to be like this or change in the future.
• Then comes the returns generated by the stock over at least 5 years or more if possible.
• If you are trading these stocks, then check the short-term performance like 3 months or 6 months’ performance
• Checking the PE and EPS of the stock, ROE and RoCE can also be helpful.
• Evaluate all the fundamentals of the stock and especially its financial ratios. You also need to check the risk involved with the stock to get a proper idea of the monopoly business that you are going to invest in.

Why invest in Monopoly Stock?

There are different reasons to Invest in Monopoly Shares.

• Monopoly means huge market capitalization. We know with higher market capitalization comes stability in returns. Thus, monopoly stocks can be considered to be one of the most stable investments as they do not get affected much by volatility in the market even during tough market scenarios.
• There are natural as well as man-made monopolies and due to the monopoly, there are often restrictions on entry into the industry. This helps the monopoly business to flourish and have a constant demand for their products and services.
• These stocks can earn not only stable returns but also regular income in the form of dividends. Most of the monopoly stocks offer good dividends.
• If you are a risk-averse investor wanting to invest in equity directly, monopoly stocks can be the best pick for you.

How to Invest in Monopoly Stocks?

To invest in the Best Monopoly Stocks in India you need to –

• Have a Demat account and trading account with a top brokerage house of your choice
• Analyze the stocks that you want to invest in, track them, and when the price is right, but them
• Hold them until the price reaches your anticipated price range.
• You can also trade these stocks using the trading platforms offered by the brokerage house.
• For trading or investment you need to click on the stock scrip, then enter the units you want to purchase by clicking the buy button, then enter the price you want to buy the stocks at and then place the order.
• Once the order gets executed, the stocks will be credited to your Demat account of yours.

Cons of Monopoly Companies

While High Monopoly Stocks to Buy are great for generating fair returns over the long-term, monopoly stocks are for those companies which have already reached or surpassed their peak of performance.

So, the returns from these stocks will be flat. In case you want to generate higher returns, then investing in monopoly stocks won’t help much. However, you also need to consider the risk factor.

Monopoly stocks have very minimal risk while higher return generating stocks can have a higher risk associated with them as well.

Top Monopoly Stocks in India – Conclusion

With this article, we hope you have found the Top Monopoly Stocks in India. You can use this article as a guide for investing in monopoly stocks in the country.

If you are an investor looking for generous returns with low risk, then monopoly stocks can be best for your investment portfolio.

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