Indian stock market has diversification in the variants of stock companies. Monopoly stocks are one of them. Here we will discuss the Best 5 Monopoly Stocks in India 2022. One of the favorite categories of the great stock market legend Mr. Warren Buffett was investing in monopoly stocks.
If you are looking for the best monopoly stocks in India 2022 then you have come to the right place to know. We provide all authentic information to our readers. You will get details about monopoly stocks and where you can invest.
What is Monopoly Stocks
- Monopoly is defined as the overlordship of product supply or trade on market.
- Monopoly stocks are also called MOAT stocks. To know monopoly stocks I will define a very famous and most known example, where the moat is a big deep ditch and in the middle of the ditch is a castle situated. The ditch is a barrier to the castle, which protect it from attackers. The deeper and big ditch will give more protection to the castle.
- Like this ditch moat, it works as an entry barrier to the company’s market in the business world. The moat may act as a prevention to the competitor such as huge capital, government rules, and markets. This monopoly gives the companies more marketing strength.
- These leading companies have the significant competitive advantage due to huge capital and much more.
- In India, monopoly stocks have dominated in their fields. The best monopoly stocks in India are ruling in different sectors. The monopoly stocks can be divided by their capitalization. But we will discuss the Best 8 Monopoly Stocks in India 2022 from all cap and sector to Invest.
How does a company make a strong monopoly market
- Creating a monopoly on the market is not a piece of cake for any company even if it how much bigger. In any monopolistic market, a particular company creates an impact on its customers to buy or take their product or service.
- They are making this monopoly in different ways such as some significant technical factors, product quality, excellent services, distribution and reach out to most places etc. Some times it depends on customers. Such as the branding of the company. I will explain it with an example.
- Nowadays people trying to create or holds a social status. So for this, having a BMW car or iPhone is showing a rich status for people. So to maintain their status people use such products.
- Another way to make a monopoly is cost of switching.
Understanding cost of switching
- Cost switching is incurred by the customers to switch from one company’s product to another. The company has the capacity of increasing high pricing to create a big moat for customers to use the competitor’s product.
- The customers are also not willing to switch as that company brings some distinctive features in their products. Thus the company creates a monopoly market. If the company increase the price so higher the customers will not switch to other because of the uniqueness of their products.
- Let me explain, if you think about butter, the name comes into your mind AMUL. Also if you think about detergent powder the name commodity walked in your mind SAFED.
- This is the monopoly market that the company created by their brand recognition. The company invested on their product distribution. Also they focused on their promotions. These are not the only reason for monopoly market, they provide some extraordinary service or products that pulls the customers to them besides their competitors.
- These are the factors thus the company makes a monopoly market and so the monopoly stocks in India have a good impact in for long term investment.
Best 5 Monopoly Stocks in India 2022
- We have discussed the monopoly stocks in 2022. Now let’s know the best monopoly stocks in India. There are many monopoly stocks, but for your benefit, we have listed only the best 5 monopoly stocks in India in 2022.
|No||Stock Name||PE Ratio||Market Share||Market Capital (Cr)|
Research by, My Finance Advices
These are the best monopoly stocks in India in 2022 we have found. Let’s know about these stocks.
1. IRCTC ( Indian Railway Catering and Tourism Corporation Ltd )
IRCTC is the best example of a monopoly stock. Because it is the only company in its sector. IRCTC was established in 1999. Since then it is ruling in its sector. IRCTC is providing both online and offline ticket services, water bottles with their own name, and also catering services to Indian railways. It is one of the largest railways in the world. IRCTC is considered a natural monopoly. In this sector, it is the only company to serve. Thus it makes a deep moat in this business.
- Last one return of IRCTC is 30.26%.
- Sector PE is -230.37
2. HAL ( Hindustan Aeronautics Ltd )
Hindustan Aeronautics Ltd was set up in 1940 to serve Indian defense. It is one of the best monopoly stock in it’s sector. Now it is own by state government. HAL started with the aim of design of aircraft for Indian air force. It designs aircrafts, jet engines , helicopters and their spare parts. It pays a important in Indian defense sector.
- Last one return of HAL is 105.54%
- Sector PE is 49.71
NESTLE is the leading company in India in the nutrition sector. As a swish company NESTLE was founded in 1866, it dominate in India more than last one decade. The top products of Nestle are kitkat, nestle coffee, nestle coffee gold, milkybar , munch and much more. The most popular product us maggi. It is the leading product in noodles. Also NESTLE providing baby foods and nutrition products.
- Last one return of NESTLE 7.77%
- Sector PE 47.12
4. COAL INDIA
COAL INDIA is the leading monopoly stock. It is the leading company in India for mining and refining coal. Also it is the world’s largest coal mining company. It is founded in 1973 as the coal authority in India. It is under the union ministry of India and managed by Ministry of coal. It produces 82% of the total produced coals in India.
- Last one return of COAL INDIA 53.50%
- Sector PE 13.28
Pidilite Industries Limited is an Indian adhesives manufacturing company, founded in 1959. The company is the dominant and leading adhesives and sealants company in India. The top products of Pidilite is Favicol and M-seal. It leads the market with 70% market share.
- Last one return of PIDILITE 18.09%
- Sector PE 13.20
These are the best monopoly stocks in India 2022. Apart from there are also many good monopoly stocks that are performing and leading the market well. Some monopoly stocks are with market share:
- EICHER – 96%
- CIPLA – 95%
- CADILA – 94%
- EXIDE – 86%
- ITC – 84&
- DEEPAK NIT – 80%
- HINDUSTAN ZINC – 78%
- BHEL- 78%
- JUBILANT – 77%
- HDFC BANK – 75%
- EVEREADY – 75%
- BIOCON – 75%
- FORBES – 75%
- MARICO – 73%
- NEROLAC – 72.5%
- PFIZER – 71.2%
- DIVIS LABS – 70%
- GAIL – 70%
- GILLETTE – 70%
- BOSCH – 70%
- CUMMINS – 70%
- HERO – 68.9%
- CONCOR – 68.5%
- DABUR – 61.5%
Investing in Monopoly Stocks
- Creating monopolies is the biggest challenge. It needs govt. support and quality service.
- The great legend Mr. Warren Buffett always emphasis to invest in monopoly companies that have moats.
- The moat is the pillar of the monopoly. The deeper moats define how the business is stronger. Investing in monopoly refers the perverseness of the company’s competitive advantage.
- The above-mentioned monopoly stocks have a deep moat in their sectors. As they hold a huge market share. It helps them to generate revenue in adverse economic situations.
- If you want to invest in monopoly stocks also analyze their fundamentals, future potential, and also market movements.
So we have talked about the best monopoly stocks in India 2022 and their market shares. As these stocks have a huge market share and a deep moat in their leading sectors. There is a similarity with gold mine that if you find the right monopoly stock. The monopoly companies have established their monopoly with the support of the government. Investing in these stocks can run for long term and much safe as they have good market share.
But in some cases, the monopoly can be vanished in a certain, such as IRCTC. They are having 100% share in their sector. If govt. make any changes their monopoly will be finished in a while.
This is an example of the dark side, if you take maggi, few years ago maggi was banned for some months. When maggi again comes in market it regains it’s market. This is the great example of monopoly. Because this product has a huge moat in noodles sector.
If you are willing tom invest in monopoly stocks then go through the company’s fundamentals and the future possibility of their monopoly and how much the deep moats they have. Also know the market situation, as the market is so volatile. But there is a safe that like blue chip companies these may be overvalued and can lead you to a low loss or low returns. So it is the positive impact of the monopoly stocks in India.
Wish you profitable investment and safe trading. Thank You.
Disclaimer: In this article we have provided information about best monopoly stocks in India. We haven’t advised any stocks. We are not responsible for any financial risk. We just give information. If you have any query then contact us at: [email protected]
Which is the best monopoly business in India?
There are many monopoly stocks in Indian 2022 in stock market. The best monopoly stocks are
4. COAL INDIA
Is IRCTC a monopoly?
Yes, IRCTC is the biggest monopoly company in India. Because it is authorized by the Indian railways to sell online rail tickets, serve catering services on trains and railway platforms, and sell water bottles with their own named seal. IRCTC is called as natural monopoly, as it has 100% market share.