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Top monopoly stocks you can add to your portfolio in 2024

equity market
Published Date: 21 Mar 2024Updated Date: 22 Mar 20246 mins readBy MOFSL
Best Monopoly stocks

Introduction:

The Indian stock market represents an expansive universe with a wide array of investment opportunities. However, certain companies stand out through their sheer dominance in respective industries or markets. The stocks of these companies – typically referred to as monopoly stocks – present unique investment opportunities for investors seeking stability and consistent growth.

In this article, you will explore the meaning of monopoly stocks and also find the list of top monopoly stocks to invest in India in 2024. Keep reading.

What are monopoly stocks?

Monopoly stocks are the stocks of companies that operate in markets with restricted competition or where a solitary company holds a dominant position. Typically, these companies attain near-monopoly status within their respective industries, affording them substantial control over pricing, market share, and profitability.

Investing in monopoly stocks offers several potential advantages, including stability, predictability, strong pricing power, high dividend income, and long-term growth. 

Top monopoly stocks to invest in India in 2024

The two Indian stock exchanges – the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) have several listed monopoly stocks from various sectors. Below are the top five monopoly stocks in India that you can buy in 2024:

1. IRCTC

IRCTC stands for Indian Railways Catering and Tourism Company. It is a public-sector undertaking (PSU) offering ticketing, catering, and tourism services for the Indian Railways. Robust fundamentals, impressive historical returns, and the company's dedication to enhancing shareholders’ value are some of the reasons to invest in this company. As of 23 February 2024, IRCTC shares were trading for Rs. 964.85 per share at the NSE and Rs. 964.65 per share at the BSE. The five-year return stood at an astounding 649%.

2. Reliance Industries Limited

Reliance Industries Limited (RIL), led by the business tycoon Mr Mukesh Ambani, has established its dominance in multiple sectors, including petrochemicals, refining, and telecommunications. The company's recent foray into the e-commerce market and plans for a green energy revolution make RIL an exciting prospect for long-term investors. As of 23 February 2024, RIL shares were available for Rs. 2,987.25 at the NSE and Rs. 2,986.35 at the BSE. The company’s market cap stood at 20,20,471 crores.

3. Deepak Nitrite

Deepak Nitrite Limited is a leading producer of organic, inorganic, fine, and speciality chemicals in India. Headquartered in Gujarat, the company holds a prominent position in India’s chemical manufacturing sector, boasting a remarkable 75% market share for sodium nitrite, sodium nitrate, and NitroToluenes. As of 23 February 2024, Deepak Nitrite’s shares were trading for Rs. 2,305.55 per share at the NSE and Rs. 2,304.70 per share at the BSE. The five-year profit growth of the company stood at 35.4%. 

4. Asian Paints

Asian Paints is India's largest and Asia's third-largest paint company. The company has a dominating presence in the decorative and coatings industry in the region. With a focus on innovative painting solutions and a booming real estate market, it is poised for sustained growth in a booming real estate market. As of 23 February 2024, Asian Paints’ shares were trading for Rs. 2,985.95 per share at the NSE and Rs. 2,984.80 per share at the BSE. The company’s market cap and P/E ratio stood at Rs. 2,86,301 crores and 52.65 respectively.

5. CAMS Limited

Computer Age Management Services (CAMS) Limited offers a range of services, including investor services, distributor services, and asset management. It holds a dominant position in the Registrar & Transfer Agents (RTA) business, commanding a substantial 70% market share. The company's consistent debt-free status over the last 5 years is a strong indicator of financial prudence and stability. Talking about the performance, CAMS has fared decently despite the market volatility in recent years. As of 23 February 2024, CAMS’ shares were trading for Rs. 3,113.25 per share at the NSE after zooming by around 36% in the last year.

To conclude

Investing in monopoly stocks can be a prudent strategy for those seeking stability and growth in their portfolios. However, you must conduct thorough research, consider your risk tolerance, and stay informed about market trends while making investment decisions. The stocks mentioned above represent companies with a proven track record of market dominance, innovation, and resilience, making them exciting investment opportunities for 2024.

 

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Disclaimer: The stocks, companies, or financial instruments mentioned in this blog are for informational purposes only and should not be considered as investment recommendations. It is advised to consult with your financial advisor before making any investment decisions. Investment in securities markets are subject to market risks, read all the related documents carefully before investing. Investors are strongly encouraged to carefully read the risk disclosure documents prior to participating in market-related investments or trading activities. Due to the volatile nature of financial markets, no guarantees can be made regarding investment returns. Motilal Oswal Financial Services Ltd. does not offer any assured returns on market-linked securities. Please note that past performance of stocks or indices is not indicative of future results.
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