Companies that have a dominant position in the market as a result of their major competitive advantage are referred to as monopolies. To compete with and keep the highest market share for their products and services, these companies are extremely difficult to compete with.
In the world of investing, however, these companies' stocks are referred to as MOAT stocks, and these Moats are either barriers to entry, such as large amounts of capital or government restrictions, or competitive advantages, such as the fact that a company has made it difficult to compete with the the them. Having a larger market share or a moat in an industry will make it more difficult for competitors to thrive and compete against the leader.
Investing in monopoly stock has a number of major advantages. These businesses have been in operation for a long period of time and have a track record of earning revenues even in difficult economic times. In addition, monopoly stocks are often known for paying dividends to their stockholders or shareholders.
India’s Top 10 Monopoly Stocks that have conquered the industry.
1. IRCTC – 100 % Monopoly
The Indian Railway Catering and Tourism Corporation (IRCTC) is a state-owned enterprise that is the sole player in the Indian market. The corporation was established in the year 1845. It is one of the world's largest railway systems, and it is also one of the largest employers in the world. Because it has no competitors in the railway ticketing market, the Indian Railway Catering and Tourism Corporation (IRCTC) enjoys a monopoly position.
2. HAL- 100% Monopoly
In addition to Hindustan Aeronautics Ltd., which is another significant monopoly stock in India, the company also plays an important part in the country's defense industry. The firm was founded in 1940 by Walchand Hirachand and the Government of Mysore with the goal of manufacturing airplanes in India. Today, the corporation is majority-owned by the government and is involved in the design, fabrication, and assembly of aeroplanes, jet engines, helicopters, and spare components, among other things.
3. NESTLE- CERALAC- 96.5% Monopoly
Nestle is one of the world's leading nutrition, health, and wellness companies set up in 1866 in Switzerland Cerelac is the brand of instant cereal for infants six months and older as a supplement for breast milk. It has spent more than a century in the Indian markets and has become an undisputed market leader in the baby food segment.
4. INDIAN ELECTRICITY EXCHANGE (IEX) – 95% Monopoly
The Indian Energy Exchange (IEX) is the country's first and largest electrical exchange, with a market capitalization of over $1 billion. It is an online marketplace where merchants can conduct business in the energy sector. Furthermore, you can engage in trading in the power market, green energy, and renewable energy certificates, among other things.
5. MULTI COMMODITY EXCHANGE (MCX) – 92% Monopoly
MCX is India’s first commodities derivatives exchange. In this exchange, you can trade in various commodity derivatives. It has a 100% monopoly in trading precious metals, energy, & base metals. The distant competitor of the company is (NCDEX) with a market share of around 7%.
Don't forget to check: Top 10 Shares between 1 to 10 Rupees
6. COAL INDIA – 82% Monopoly
Coal India Limited is a coal mining and refining corporation headquartered in New Delhi, India. Aside from that, it is also the world's largest coal-producing corporation by production capacity. India's Union government owns the company, which is administered by the Ministry of Coal.
7. HINDUSTAN ZINC- 78% Monopoly
Hindustan Zinc Ltd. is the second-largest zinc-lead miner in the world, after China. Metal Corporation of India was established in 1966 as a public sector undertaking under the name Metal Corporation of India. The company is a subsidiary of Vedanta Limited, which holds 64.9 percent of the corporation while the Indian government owns a 29.5 percent minority share.
8. ITC – 77% Monopoly
Despite the fact that the corporation has grown into a conglomerate over the previous century, its cigarette business continues to enjoy a dominant position in the Indian market, accounting for 77 percent of total sales.
9. MARICO OIL PRODUCTS- 73% Monopoly
Despite being around for only three decades, the company has come a long way in the segment. Marico is one of the well-known FMCG companies in India, but most of its success lies in its two brands, ‘Saffola’ and ‘Parachute.’
10. PIDILITE- 70% Monopoly
Paint chemicals, automotive chemicals, industrial adhesives, and industrial and textile resins are among Pidilite's most well-known products, including the Fevicol brand. With a market share of 70 percent in the adhesive and industrial chemical markets, it is the global leader.
If you wonder which is the best monopoly stock that will mint money for you, you will have to research each monopoly stock in detail and hold it for the long term.