Best Monopoly Stocks in India October 2024 – 5-yr CAGR Basis: Includes IRCTC, Coal India, HAL

Monopoly stocks in India represent companies that dominate their respective markets, benefiting from a lack of competition and enjoying substantial pricing power. One prime example is the Indian Railway Catering and Tourism Corporation (IRCTC), which operates as the exclusive online ticketing platform for Indian Railways, as well as providing catering services and tourism-related activities. With the Indian Railways being one of the largest and most essential modes of transport in the country, IRCTC’s unique position enables it to capture significant market share and generate consistent revenue growth. 

 

In this article, check the best monopoly stocks in India in October 2024, based on the 5yr CAGR. 

 

Best Monopoly Stocks in India in October 2024 – Based on 5-yr CAGR

Name	Market Cap (₹ in crore)	PE Ratio	1Y Return (%)	5Y CAGR (%)
Hindustan Aeronautics Ltd	2,97,347.40	39.02	126.66	65.32
Praj Industries Ltd	14,197.72	50.11	30.25	48.39
Indian Energy Exchange Ltd	18,192.70	51.86	53.60	37.48
Coal India Ltd	3,03,791.69	8.12	63.31	21.13
Indian Railway Catering and Tourism Corporation Ltd	71,136	64.02	26.20	–

Note: The monopoly stocks list provided here is as of July 10, 2024. The stocks are sorted based on 5-year CAGR. 

 

Overview of the 5 Best Monopoly Stocks in October 2024

• Hindustan Aeronautics Ltd

Hindustan Aeronautics Ltd (HAL) 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 the fiscal year 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.

 

Key financial metrics 

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

 

• Praj Industries Ltd

Praj Industries Ltd is involved in the designing, manufacturing, and supplying of industrial process equipment, bioproducts plants, and environmental technologies. They cater to sectors like 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.

 

Key financial metrics 

• ROE: 24.09%
• ROCE: 26.98%

 

• Indian Energy Exchange Ltd

Indian Energy Exchange Ltd (IEX) is an electronic platform for trading electricity and other related products. They facilitate buying and selling electricity between generators, distributors, and large consumers, ensuring efficient price discovery in the Indian power market. 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.

 

Key financial metrics 

• ROE: 39.61%
• ROCE: 45.88%

 

• Coal India Ltd

Coal India Ltd is primarily involved in mining and production of Coal and also operates Coal washeries. For FY 2024, total income was ₹1,50,293.06 crore, showing an increase from ₹1,44,811.72 crore in FY 2023. Profit in FY 2024 amounted to ₹37,369.13 crore, reflecting an increase from ₹31,722.98 crore in FY 2023.

 

Key financial metrics 

• ROE: 51.52%
• ROCE: 28.43%

 

• Indian Railway Catering and Tourism Corporation Ltd (IRCTC)

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 the fiscal year 2024, the total income amounted to ₹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.

 

Key financial metrics 

• ROE: 38.93%
• ROCE: 43.78%

Conclusion

Before investing in monopoly stocks, it’s essential to thoroughly understand the company’s business, financials, market demand for the products or services and future prospects. Additionally, check on your investment objectives and risk tolerance. Consult your financial advisor before making any decisions.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.