The below table shows the monopoly stocks in India based on the percentage of market share they occupy.
|Monopoly Stock||Percentage of Market Share||Market Capitalization(₹ in Cr)||Current Price (₹)|
|IRCTC||100% in ticketing business||59,424||742.8|
|HAL||100% in defence manufacturing||82,592||2,448|
|Nestle||96.5% share in cerelac industry||1,90,315.95||19,739|
|IEX||95% of short-term electricity contracts in India||12,630||140.95|
|MCX||92% in India’s commodities exchange sector||6,804||1,329|
|Coal India||82% in coal production||1,46,796.19||241|
|Hindustan Zinc||78% in zinc industry||1,18,921.60||281.45|
|ITC||77% in cigarettes||4,29,445.55||349.7|
|Marico||73% in oil products||66,771||523.85|
|CAMS||70% within the mutual fund industry||12,568||2,611|
|Pidilite Industries||70% share in adhesive||1,35,459.13||2,665|
|CONCOR||68.52% in cargo carrier||46,992||744.1|
|Praj Industries||60% in ethanol plant installation industry||7,964||422.25|
|BHEL||67% in the power equipment sector||23,521||66.45|
|CDSL||59% in depository business||12,822||1,214|
|APL Apollo||50% share in pre-galvanised and structural tube industry||27,921||1,087|
In this article, we are going to learn about what is monopoly, its types, and the top monopoly stocks in India.
- What is Monopoly?
- Types of Monopoly
- Best Monopoly Shares in India – Based on Highest Return in 1 Year
- Monopoly Stocks in India – Highest Net Profit Margin
- Monopoly Stocks List – Highest Earning Per Share
- Monopoly Stocks – Highest Dividends
- Monopoly Shares in India – Highest Trading Volume
- Introduction to Monopoly Businesses in India
- Quick Summary
What is Monopoly?
According to Irving Fisher’s definition, a monopoly is a market in which there is “no competition,” which results in a circumstance wherein one particular person or business is the exclusive provider of a particular good or service.
Since we are on the topic, let’s also look at the question of what is monopoly market. Monopoly markets are ones in which one firm has complete control over the supply and pricing of a good or service. When only one vendor controls all of a product’s supply, the market is said to be a monopoly.
Types of Monopoly
It’s quite ironic that the word monopoly has different types, but to name a few, we have broadly classified monopoly into seven different types.
- Simple Monopoly
Simple monopoly exists when there are no other suppliers of the good or service in question. The product or service must also be unique or otherwise difficult to replicate. When selling to its customers, a simple monopoly corporation always maintains a consistent price for its goods.
- Pure Monopoly
A pure monopoly is a single vendor in a market or industry with substantial entry barriers, such as high establishment costs, whose product has no substitutes. Microsoft Corporation was the first to have a monopoly on personal computer operating systems.
Pure monopoly is a rare occurrence. Buyers will have to accept pure monopoly pricing, no matter how unfair it is.
- Natural Monopoly
Natural monopoly is a situation that originates from natural causes. It also shares monopoly features such as the production of a unique good, price and quantity difference, and entry restrictions, among others. Natural monopoly provides the industry with the distinct advantage of producing the product at a lower cost. This particular instance aids them in gaining a larger share of the market.
- Legal Monopoly
A legal monopoly exists when a single company has exclusive rights to produce a good or service by virtue of intellectual property protections like patents, trademarks, or copyrights. Since the monopolist developed the product (or method), it has a virtual monopoly on the market. By extending the time it takes for companies to recover the substantial investments they make in research and development, patents help them remain competitive.
- Public or Government Monopoly
A public monopoly is a government monopoly established to provide a vital service or good. The following are some of the reasons why the government establishes monopolies:
- The production and shipping costs are too high.
- To have one reliable and helpful provider is seen as better for the public good.
When the government takes over industry in the name of the people, it forms a public monopoly.
- Discriminating Monopoly
When a monopoly business decides to charge different prices to different groups of customers, it is said to be discriminating. An online store might provide different prices for customers in different PIN codes, with more affluent areas being charged a higher rate.
- Imperfect Monopoly
A single company that makes a good that has no close substitutes is an imperfect monopoly. In imperfect monopolies, it is easier for buyers to switch to a close substitute than in a pure monopoly. In the real world, this market is pretty common.
Best Monopoly Shares in India – Based on Highest Return in 1 Year
|SL No.||Stocks||Market Cap (₹ Cr)||Closing Price (₹)||1Y Return (%)|
|1||Hindustan Aeronautics Ltd||82,294.44||2,461.05||81.06|
|2||Coal India Ltd||1,41,650.31||231.55||48.05|
|4||Praj Industries Ltd||7,430.49||409.9||22.18|
|5||APL Apollo Tubes Ltd||26,887.63||1,062.70||20.41|
|6||Pidilite Industries Ltd||1,44,046.84||2,833.90||16.59|
|7||Bharat Heavy Electricals Ltd||20,927.20||59.1||8.64|
|8||Container Corporation of India Ltd||45,377.20||742.1||5.52|
|9||Central Depository Services (India) Ltd||14,076.67||1,324.90||3.22|
|10||Indian Railway Catering and Tourism Corporation Ltd||56,492.00||700.35||-3.39|
Monopoly Stocks in India – Highest Net Profit Margin
|SL No.||Stocks||Market Cap (₹ Cr)||Closing Price (₹)||Net Profit Margin (%)|
|1||Indian Energy Exchange Ltd||13,732.49||151.1||62.88|
|2||Central Depository Services (India) Ltd||14,076.67||1,324.90||51.36|
|3||Indian Railway Catering and Tourism Corporation Ltd||56,492.00||700.35||33.6|
|4||Multi Commodity Exchange of India Ltd||6,537.19||1,284.25||33.11|
|5||Hindustan Zinc Ltd||1,17,801.89||281.15||31.41|
|6||Computer Age Management Services Ltd||12,140.87||2,440.85||30.96|
|8||Hindustan Aeronautics Ltd||82,294.44||2,461.05||19.84|
|9||Coal India Ltd||1,41,650.31||231.55||15.28|
|10||Nestle India Ltd||1,79,493.76||18,649.90||14.46|
Monopoly Stocks List – Highest Earning Per Share
|SL No.||Stocks||Market Cap (₹ Cr)||Closing Price (₹)||Earnings Per Share (₹)|
|1||Nestle India Ltd||1,79,493.76||18,649.90||222.46|
|2||Hindustan Aeronautics Ltd||82,294.44||2,461.05||151.92|
|3||Computer Age Management Services Ltd||12,140.87||2,440.85||58.74|
|4||Central Depository Services (India) Ltd||14,076.67||1,324.90||29.78|
|5||Coal India Ltd||1,41,650.31||231.55||28.17|
|6||Multi Commodity Exchange of India Ltd||6,537.19||1,284.25||28.13|
|7||Pidilite Industries Ltd||1,44,046.84||2,833.90||23.76|
|8||Hindustan Zinc Ltd||1,17,801.89||281.15||22.79|
|9||APL Apollo Tubes Ltd||26,887.63||1,062.70||22.29|
|10||Container Corporation of India Ltd||45,377.20||742.1||17.32|
Monopoly Stocks – Highest Dividends
|SL No.||Stocks||Market Cap (₹ Cr)||Closing Price (₹)||Dividends Per Share (₹)|
|1||Nestle India Ltd||1,79,493.76||18,649.90||200|
|2||Hindustan Aeronautics Ltd||82,294.44||2,461.05||40|
|3||Computer Age Management Services Ltd||12,140.87||2,440.85||38.75|
|4||Hindustan Zinc Ltd||1,17,801.89||281.15||18|
|5||Multi Commodity Exchange of India Ltd||6,537.19||1,284.25||17.4|
|6||Coal India Ltd||1,41,650.31||231.55||17|
|7||Central Depository Services (India) Ltd||14,076.67||1,324.90||15|
|9||Pidilite Industries Ltd||1,44,046.84||2,833.90||10|
Monopoly Shares in India – Highest Trading Volume
|SL No.||Stocks||Market Cap (₹ Cr)||Closing Price (₹)||Daily Volume|
|1||Bharat Heavy Electricals Ltd||20,927.20||59.1||1,39,55,814.00|
|3||Indian Energy Exchange Ltd||13,732.49||151.1||72,70,188.00|
|4||Coal India Ltd||1,41,650.31||231.55||56,59,757.00|
|6||Indian Railway Catering and Tourism Corporation Ltd||56,492.00||700.35||14,13,584.00|
|7||Multi Commodity Exchange of India Ltd||6,537.19||1,284.25||12,01,462.00|
|8||Praj Industries Ltd||7,430.49||409.9||9,75,223.00|
|9||Container Corporation of India Ltd||45,377.20||742.1||8,80,243.00|
|10||Hindustan Aeronautics Ltd||82,294.44||2,461.05||8,31,217.00|
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Introduction to Monopoly Businesses in India
The Indian Railway Catering and Tourism Corporation, also known as IRCTC, is a Mini Ratna (Category-I) Central Public Sector Enterprise that falls under the purview of the Ministry of Railways in the Indian government.
The Indian Railway Catering and Tourism Corporation (IRCTC) was established on September 27, 1999, as an extension of the Indian Railways with the goals of modernizing, professionalizing, and managing the catering and hospitality services provided at stations, on trains, and other locations; promoting domestic and international tourism through the development of budget hotels, unique tour packages, information, and commercial publicity; and global reservation systems. The IRCTC was established as an extension of the Indian Railways.
Hindustan Aeronautics is in the business of manufacturing aircraft and helicopters, as well as repairing and maintaining aircraft and helicopters. Its customers can expect these services from the company.
Because it is the only Indian firm specializing in aircraft production and providing its Maintenance and related services, HAL plays a pivotal position in India’s defense program. This is due to the fact that HAL is the only Indian company that possesses these capabilities.
Nestle India Limited is a wholly-owned subsidiary of Nestle, which is a multinational corporation based in Switzerland. The Food market is the one that the company operates in. The Company, which is India’s largest FMCG Player, has an established market position in the majority of the product categories in which it is present.
With a wide variety of items sold under the Maggi name, the company was an industry leader when it came to the culinary sector. The majority of the firm’s product categories, including milk products and nutrition, drinks, prepared dishes and culinary aids, chocolate and confectionery, and more, all include the company as one of the top two competitors.
The Central Electricity Regulatory Commission (CERC) has granted the Indian Energy Exchange a license as a Power Exchange in order to facilitate spot trading in power and electricity as well as the trading of Renewal Energy Certificates (REC) and Energy Saving Certificates (ESCerts). The provision of an automated platform and the infrastructure required for carrying out trade in electricity units in exchange for the physical supply of electricity is the primary focus of the business.
The Multi Commodity Exchange of India Limited was the very first exchange in India to be publicly traded. It is an exchange for commodity derivatives that allows for the online trading of commodity derivatives transactions. As a result, it serves as a venue for the determination of prices and the administration of risks. The Securities and Exchange Board of India serves as the overarching regulating body for the Exchange, which first opened its doors for business in November of 2003. (SEBI).
The primary activities of Coal India Ltd. include the mining and production of coal, as well as the operation of coal washeries. The electricity and steel industries are the company’s primary markets for its products. Consumers from other industries include those in the cement, fertilizer, and brick kiln industries, among others.
Hindustan Zinc was established in 1966, giving it a wealth of experience in the mining and smelting of zinc and lead, spanning more than half a century. HZL is one of the lowest-cost producers of zinc in the world, and it is India’s only integrated producer of zinc, lead, and silver. It was ranked number one in the Metals and Mining Category in the Asia Pacific region of the Dow Jones Sustainability Index for 2019.
The company is a subsidiary of Vedanta Limited, which owns 64.9% of it; the remaining 29.5% is controlled by the Government of India.
ITC was founded in 1910 and has since grown to become the most successful cigarette manufacturer and retailer in the country. At the moment, ITC conducts its operations within the following five business categories: FMCG Cigarettes, FMCG Others, Hotels, Paperboards, Paper and Packaging, and Agri-Business.
With a market share that is greater than 80 %, ITC is the dominant player in the organized domestic cigarette market. It offers a diverse selection of brands, some of which include Insignia, India Kings, Classic, Gold Flake, and American Club, amongst others.
Marico Limited is one of the most successful consumer products firms in India, and it is focused on the beauty and wellness industries worldwide. It has a presence in more than 25 countries across the developing economies of Asia and Africa. It cultivates premier brands in a variety of sectors, including male grooming, hair care, skin care, edible oils, healthy foods, and fabric care.
This business deals in the transfer of mutual fund assets. It offers services targeted toward investors, distributors, and asset management companies (AMCs), respectively.
India’s Largest RTA Technology-driven financial infrastructure and services provider to other financial institutions, including mutual funds. It is India’s largest mutual fund registration and transfer agency, with a mutual fund aggregate market share of 69.4%, representing a total of Rs. 22 trillion.
Pidilite Industries Limited is a market leader in India when it comes to the production of adhesives and sealants, construction chemicals, products for craftsmen and do-it-yourselfers, as well as polymer emulsions. The majority of the goods have been developed through extensive research and development conducted in-house.
There are millions of people in India who associate the word Fevicol with adhesives, and our company is consistently listed among the most trusted brands in the country. M-Seal, Fevikwik, Fevistik, Roff, Dr. Fixit, Fevicryl, Motomax, Hobby Ideas, and Araldite are some of the other well-known brands that we carry.
Container Corporation Of India (CONCOR) is in the business of providing inland transportation of containers through rail. This is their primary line of business. It also develops cold chains, manages air cargo complexes, and includes port management.
The Praj Industries Ltd. company was established in 1985 and has its headquarters in Pune. They have a presence all over the world with more than 750 references in more than 75 different countries. It started out as a supplier for an ethanol plant, but today it has grown into a global firm that offers a variety of solutions with a concentration on the industries of agriculture, energy, and the environment.
Bharat Heavy Electricals Ltd. is an integrated power plant equipment manufacturer that is involved in the design, engineering, manufacture, erection, testing, commissioning, and servicing of a wide range of products and services for the core sectors of the economy.
These core sectors include power, transmission, industry, transportation, renewable energy, oil and gas, and defense. Bharat Heavy Electricals Ltd. also provides services for these core sectors. It is India’s most prestigious engineering and manufacturing enterprise, and the government of India owns and directs its operations.
The Central Depository Services Limited is a Market Infrastructure Institution (MII), which is a component of the structure of the capital market. As such, it offers services to all market participants, including issuers, investors, and exchanges, as well as clearing corporations and depository participants (DPs). It is both an enabler for transactions involving securities as well as a facilitator for holding securities in their dematerialized form.
APL Apollo Tubes Limited, also known simply as APL Apollo, is one of the most successful producers of branded steel products in India. The company’s headquarters are located in Delhi NCR, and it operates ten manufacturing facilities that produce over 1,500 different types of MS Black Pipes, Galvanised Tubes, Pre-Galvanised Tubes, Structural ERW Steel Tubes, and Hollow Sections. These products are used in a variety of industries, including urban infrastructures, housing, irrigation, solar plants, greenhouses, and engineering.
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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
- A monopoly is a market in which there is “no competition,” which results in a circumstance wherein one particular person or business is the exclusive provider of a particular good or service.
- It’s quite ironic that the word monopoly has different types, but to name a few, we have broadly classified monopoly into seven different types.
- Simple Monopoly
- Pure Monopoly
- Natural Monopoly
- Legal Monopoly
- Public or Government Monopoly
- Discriminating Monopoly
- Imperfect Monopoly
- IRCTC, HAL, Nestle, IEX, MCX, Coal India, Hindustan Zinc, ITC, Marico, CAMS, Pidilite Industries, CONCOR, Praj Industries, BHEL, CDSL, APL Apollo are the Top Monopoly Stocks in India.