Monopoly stocks are shares of companies that have a strong hold over their industries with little to no competition. These companies usually have a large market share, strong brand value, and pricing power. A well-known example is the Indian Railways Catering and Tourism Corporation (IRCTC), which dominates railway catering and online ticketing in India.
In this article, we look at the top monopoly stocks in India for February 2025 based on their 5-year CAGR (Compound Annual Growth Rate).
Best Monopoly Stocks in India in February 2025 – Based on 5-yr CAGR
Name | Market Cap (in ₹ crore) | ↓5Y CAGR (%) | 1Y Return (%) | Net Profit Margin (%) |
Hindustan Aeronautics Ltd | 2,35,980.60 | 55.35 | 20.33 | 23.59 |
Bharat Heavy Electricals Ltd | 68,332.01 | 37.83 | -16.6 | 1.15 |
Indian Railway Catering and Tourism Corporation Ltd | 61,812.00 | 25.3 | -18.38 | 25.01 |
ITC Ltd | 5,68,504.51 | 18.26 | 9.64 | 27.78 |
Hindustan Zinc Ltd | 1,82,766.17 | 17.96 | 37.1 | 25.86 |
Note: The monopoly stocks list provided here is as of February 04, 2025. The stocks are sorted based on 5-year CAGR.
Overview of the 5 Best Monopoly Stocks in February 2025
1. Hindustan Aeronautics Limited
Hindustan Aeronautics Limited (HAL) is a government-owned aerospace and defence company based in Bengaluru, India. Founded on December 23, 1940, HAL is one of the oldest and largest manufacturers in the aerospace and defence industry globally.
For the period ending September 2024, the company reported a revenue of ₹5,976.55 crore and a net profit of ₹1,490.36 crore. In comparison, the revenue for June 2024 was ₹4,347.57 crore, and the net profit was ₹1,435.59 crore.
Key metrics:
- Earning per Share (EPS): ₹126.67
- Return On Equity (ROE): 27.25%
2. Bharat Heavy Electricals Limited
BHEL is a major public sector company in India and the largest government-owned electrical and industrial technology firm. It is owned by the Indian government and operates under the Ministry of Heavy Industries.
For the period ending December 2024, the company reported a revenue of ₹7,277.09 crore and a net profit of ₹124.77 crore. In comparison, the revenue for September 2024 was ₹6,584.10 crore, with a net profit of ₹96.67 crore.
Key metrics:
- EPS: ₹1.42
- ROE: 2.01%
3. Indian Railway Catering and Tourism Corporation
Indian Railway Catering and Tourism Corporation (IRCTC) is a government-owned company that offers ticketing, catering, and tourism services for Indian Railways. It was founded in 1999 by the Indian government and operates under the Ministry of Railways.
For the period ending September 2024, the company reported a revenue of ₹1,064.00 crore and a net profit of ₹307.82 crore. In comparison, the revenue for June 2024 was ₹1,120.15 crore, with a net profit of ₹307.68 crore.
Key metrics:
- EPS: ₹15.00
- ROE: 34.05%
4. ITC Limited
ITC Limited is an Indian multinational company based in Kolkata. It operates in six main sectors: FMCG, hotels, agribusiness, information technology, paper products, and packaging. A significant portion of its revenue comes from tobacco products.
For the period ending September 2024, the company reported a revenue of ₹20,537.35 crore and a net profit of ₹5,078.34 crore. In comparison, the revenue for June 2024 was ₹18,219.74 crore, with a net profit of ₹4,917.45 crore.
Key metrics:
- EPS: ₹16.46
- ROE: 28.22%
5. Hindustan Zinc Limited
Hindustan Zinc Limited is an Indian company that mines and produces zinc, lead, silver, and cadmium. It is a subsidiary of Vedanta Limited.
For the period ending December 2024, the company reported a revenue of ₹8,556.00 crore and a net profit of ₹2,647.00 crore. In comparison, the revenue for September 2024 was ₹8,242.00 crore, with a net profit of ₹2,298.00 crore.
Key metrics:
- EPS: ₹22.12
- ROE: 122.28%
Best Monopoly Stocks in India in February 2025 – Based on Market Cap
Name | ↓Market Cap (in ₹ crore) | 5Y CAGR (%) | 1Y Return (%) | Net Profit Margin (%) |
ITC Ltd | 5,68,504.51 | 18.26 | 9.64 | 27.78 |
Hindustan Aeronautics Ltd | 2,35,980.60 | 55.35 | 20.33 | 23.59 |
Coal India Ltd | 2,30,486.04 | 15.92 | -15.05 | 24.82 |
Nestle India Ltd | 2,23,404.86 | 7.29 | -5.91 | 15.53 |
Asian Paints Ltd | 2,19,762.01 | 4.18 | -21.43 | 15.04 |
Note: The monopoly stocks list provided here is as of February 04, 2025. The stocks are sorted based on market cap.
Best Monopoly Stocks in India in February 2025 – Based on Net Profit Margin
Name | Market Cap (in ₹ crore) | 5Y CAGR (%) | 1Y Return (%) | ↓Net Profit Margin (%) |
ITC Ltd | 5,68,504.51 | 18.26 | 9.64 | 27.78 |
Hindustan Zinc Ltd | 1,82,766.17 | 17.96 | 37.1 | 25.86 |
Indian Railway Catering and Tourism Corporation Ltd | 61,812.00 | 25.3 | -18.38 | 25.01 |
Coal India Ltd | 2,30,486.04 | 15.92 | -15.05 | 24.82 |
Hindustan Aeronautics Ltd | 2,35,980.60 | 55.35 | 20.33 | 23.59 |
Note: The monopoly stocks list provided here is as of February 04, 2025. The stocks are sorted based on net profit margin.
Advantages of Investing in Monopoly Stocks
- Market Control: Monopoly companies often dominate their industry with little to no competition, ensuring steady demand for their products or services.
- Ability to Set Prices: These companies have the power to set prices without much pressure from competitors.
- Stable Operations: They typically operate in sectors with high entry barriers, which helps secure their position in the market.
- Predictable Growth: With consistent demand, government support (in some cases), and economies of scale, these companies usually experience steady growth.
- Lower Risk of Disruption: Due to their strong market position and brand recognition, they are less likely to face challenges from competitors.
Things to Keep in Mind When Investing in Monopoly Stocks
- Regulatory Attention: Monopoly companies often face scrutiny from regulators due to concerns about unfair competition, and stricter rules could affect their profits.
- Slower Growth: After reaching market saturation, growth can slow, especially in mature industries.
- Risk of Disruption: New technologies or competitors with innovative ideas can challenge even the most established monopolies.
Conclusion
In addition to these factors, there are several monopoly stocks in India. Before investing, it’s important to understand the company’s business, financials, and future prospects. Make sure to consider your investment objectives, timeline of your investments and risk tolerance.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.