Best Monopoly Stocks in India for January 2025 – 5-yr CAGR Basis: IRCTC, Coal India & More

Monopoly stocks refer to shares of companies that dominate their respective markets, with little to no competition, and are often key players in their industries. These companies enjoy a significant market share, pricing power, and a strong brand presence. One such example is the Indian Railways Catering and Tourism Corporation (IRCTC), which enjoys a monopoly in the railway catering and online ticketing sectors in India. In this article, check the best monopoly stocks in India in January 2025, based on the 5yr CAGR.

Best Monopoly Stocks in India in January 2025 – Based on 5-yr CAGR

Note: The monopoly stocks list provided here is as of January 8, 2025. The stocks are sorted based on 5-year CAGR.

Overview of the 5 Best Monopoly Stocks in January 2025

1. Hindustan Aeronautics Ltd (HAL)

Hindustan Aeronautics Ltd is India’s state-owned aerospace and defence company. It manufactures combat aircraft, helicopters, aero engines, and other defence equipment for the Indian armed forces and exports its products to various countries. For FY 2024, the total income amounted to ₹32,27,768 lakh, up from ₹28,59,758 lakh in FY 2023. In FY 2024, the company’s net profit stood at ₹7,62,095 lakh, rising from ₹5,82,773 lakh in FY 2023. In H1 FY 2025, the company reported a profit of ₹2,92,595 lakh, up from ₹2,04,949 lakh during the same period in the previous year.

Key metrics 

• Return on Equity (ROE): 28.91%
• Return on Capital Employed (ROCE): 24.58%

2. Praj Industries Ltd

Praj Industries is engaged in the designing, manufacturing, and supplying of industrial process equipment, bioproducts plants, and environmental technologies. They offer their services to various sectors, such as alcohol, sugar, pharmaceuticals, chemicals, and biofuels. For FY 2024, total income was ₹35,097.77 million, down from ₹35,636.39 million in FY 2023. Profit after tax (PAT) after minority interest for FY 2024 amounted to ₹2,833.56 million, increasing from ₹2,397.94 million in FY 2023. In H1 FY 2025, the company reported a profit of ₹1,380.117 million, up from ₹1,210.405 million during the same period in the previous year.

Key metrics 

• ROE: 24.09%
• ROCE: 26.98%

3. Indian Railway Catering and Tourism Corporation Ltd

IRCTC is classified as a Mini Ratna (Category 1) among Central Public Sector Enterprises and holds exclusive authorisation from the Indian government to offer online railway ticketing, catering services, and packaged drinking water at railway stations and on trains across India. For FY 2024, the total income was ₹4,434.66 crore, up from ₹3,661.90 crore in FY 2023. In FY 2024, the company’s PAT stood at ₹1,111.26 crore, rising by ~10.48% from ₹1,005.88 lakh in FY 2023. In H1 FY 2025, the company reported a profit of ₹61,558.39 lakh, which rose from ₹52,689.46 lakh during the same period in the previous year.

Key metrics 

• ROE: 38.93%
• ROCE: 43.78%

4. Indian Energy Exchange Ltd (IEX)

Indian Energy Exchange Ltd is an electronic platform for trading electricity and other related products. For FY 2024, total income was ₹55,084.84 lakh, showing an increase from ₹47,410.18 lakh in FY 2023. Profit in FY 2024 amounted to ₹35,078.26 lakh, reflecting an increase from ₹30,588.63 lakh in FY 2023. In H1 FY 2025, the company reported a profit of ₹20,476.39 lakh, which increased from ₹16,228.98 lakh during the same period in the previous year.

Key metrics 

• ROE: 39.61%
• ROCE: 45.88%

5. Coal India Ltd

Coal India is mainly engaged in mining and production of coal and operates coal washeries. For FY 2024, total income was ₹1,50,293.06 crore, with an increase from ₹1,44,811.72 crore in FY 2023. Profit in FY 2024 was ₹37,369.13 crore, reflecting an increase from ₹31,722.98 crore in FY 2023. In H1 FY 2025, the company reported a profit (before OCI) of ₹17,218.35 crore, which increased from ₹18,547.03 crore during the same period in the previous year.

Key metrics 

• ROE: 51.52%
• ROCE: 28.43%

Pros of Investing in Monopoly Stocks

• Market Dominance: Monopoly companies often dominate their industries, facing little to no competition. This can provide a steady demand for their products or services.
• Pricing Power: Monopoly companies can set prices without significant pressure from competitors.
• Stable Business Models: These companies usually operate in industries with high entry barriers, making their market position secure.
• Predictable Growth: Monopoly companies often benefit from recurring demand, government support (in some cases), and economies of scale, leading to predictable growth over time.
• Lower Risk of Disruption: Due to their dominant position and strong brand presence, these companies are less likely to face disruptions from competitors.

Risks of Investing in Monopoly Stocks

• Regulatory Scrutiny: Monopoly companies are often under the radar of regulators due to concerns about anti-competitive practices. Stricter regulations can impact their profitability.
• Limited Growth Potential: Once a monopoly achieves market saturation, its growth can slow, especially if the industry itself matures.
• Vulnerability to Disruption: Technological advancements or new entrants with innovative solutions could challenge even well-established monopolies.

Conclusion

Apart from these, there can be several other monopoly stocks in India. Before investing in monopoly stocks, it’s vital to thoroughly understand the company’s business, financials, market demand for the products or services and future prospects. Also, analyse your investment objectives 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.