Monopoly stocks refer to shares of companies that dominate their industry or market, with little to no competition. These companies often have a strong market presence, pricing power, and the ability to generate consistent profits.
Higher return ratios are financial metrics that measure a company’s ability to generate profits relative to its equity, assets, or investments. Key ratios include Return on Equity (ROE), Return on Assets (ROA), and Profit Margins. Higher values of these ratios indicate better profitability, efficient use of resources, and strong financial performance, making such companies attractive to investors.
It indicates that the investment is providing higher profits compared to the amount of risk or capital invested. A higher return ratio is often seen as a positive sign for investors, as it suggests more efficient and profitable investments.
Coal India Ltd
Coal India is the largest coal producer in the world, accounting for over 80 percent of India’s coal production. It holds a monopoly in the coal mining industry in India, providing fuel to power plants and industries across the country.
The stock has a strong ROE of 38 percent and a robust ROCE of 41.6 percent. Additionally, the company’s ROA stands at 13.7 percent, reflecting efficient asset utilization.
Indian Railway Catering & Tourism Corporation Ltd
IRCTC is the exclusive provider of online railway ticketing and catering services for Indian Railways. It has a monopoly in online train ticketing and catering services for the Indian Railway network.
The stock has a strong ROE of 40.4 percent and a robust ROCE of 53.8 percent. Additionally, the company’s ROA stands at 20.6 percent, reflecting efficient asset utilization.
CDSL (Central Depository Services Limited)
CDSL is one of the two depositories in India, offering dematerialization services for securities. It has a significant market share in the Indian securities market, and though it faces competition from NSDL, it holds a dominant position in the sector.
The stock has a strong ROE of 31.3 percent and a robust ROCE of 40.3 percent. Additionally, the company’s ROA stands at 25.9 percent, reflecting efficient asset utilization.
HAL (Hindustan Aeronautics Limited)
HAL is a state-owned aerospace and defense company in India, primarily involved in the design and manufacture of aircraft, helicopters, and defense systems. It has a monopoly in the Indian defense aviation sector, being the main supplier for the Indian Armed Forces.
The stock has a strong ROE of 28.9 percent and a robust ROCE of 38.9 percent. Additionally, the company’s ROA stands at 10.1 percent, reflecting efficient asset utilization.
CAMS (Computer Age Management Services) Ltd
CAMS is a leading provider of registrar and transfer agent (RTA) services to mutual funds in India. It holds a dominant position in the mutual fund industry, with a significant market share in RTA services.
The stock has a strong ROE of 40.5 percent and a robust ROCE of 49.8 percent. Additionally, the company’s ROA stands at 28.2 percent, reflecting efficient asset utilization.
IEX (Indian Energy Exchange) Ltd
IEX is the leading power exchange in India, where electricity is traded in the spot market. It has a monopoly in the electricity trading market, offering platform-based electricity trading services to utilities, businesses, and traders.
The stock has a strong ROE of 37.7 percent and a robust ROCE of 50 percent. Additionally, the company’s ROA stands at 20.5 percent, reflecting efficient asset utilization.
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