What makes Monopoly companies good for investment?
Monopoly companies are companies which have significant market share in the business vertical they are operating into. The closest competitor may have insignificant market share compared with the company. The competition may also be from unorganized sector as well. So there may not be major listed player giving competition to the company. Over the years companies which have significant market share in the area they operate have given good returns to investors. So many investors are interested to explore the companies which have some kind of monopoly as it may help them if the industry expands or market opportunity increases with time.
In this article I will explore unknown monopoly companies which are small in size and relatively not heard of. There are many companies which are well researched and written about. Those companies are known to most investors and have grown in size over the years. Those will not be covered in this article. The companies like Asian Paints, Pidilite, ITC or similar companies which have monopoly in Paints, Adhesives and Cigarettes are well known and have grown to become large caps will not be discussed here.
Over the years many companies which have monopoly in their respective fields have given good returns to investors. This makes a case to study these companies in details and find out any potential multi baggers of future where one can invest and make money. So lets see some unknown or relatively less known companies which you have not heard of are aware of. From that list you can do your own due diligence to short list the ones which suits your investment.
List of Monopoly companies
Below is the list of monopoly companies. Note the list in not in any particular order. I have tried to list down companies which are relatively lesser known and are still not large cap to say the least. This gives ample opportunity for them to grow as well. This growth helps investor make money. So lets get started with the list.
| Company Name | Details |
|---|---|
| APL Apollo | 1. It has more than 50% market share in structural and Pre galvanized tubes 2. It was in portfolio of famous investor Ashish Kacholia 3. It is mid cap company with market cap of 32 thousand crore |
| Asahi India glass | 1. It has more than 70% market share in Automotive glass segment. 2. Asahi Glass and Maruti Suzuki are among the promoters of this company 3. It is also present in portfolio of famous investor Nemish Shah 4. It is mid cap company with market cap of 12 thousand crore. |
| Cheviot | 1. It has more than 40% market share in Jute bag manufacturing. 2. It was in portfolio of famous investor Vijay Kedia 3. It is one of the largest listed Jute manufacturing company listed. 4. It is micro cap company with market cap around 7 hundred crore. |
| Delta Corp | 1. It is only listed player which operates Casino. 2. It has approx 50% market share in online poker games. 3. It was also part of Rakesh Jhunjhunwala portfolio. 4. It is small cap company with market cap of 5 thousand crore. |
| GIC Re | 1. It is one of the largest Reinsurer with market share of more than 60%. 2. It is Government of India enterprise. 3. It is mid cap company with market cap of 25 thousand crore. |
| Greenlam | 1. It has 25% market share in organized laminate industry 2. 33% market share in laminate exports from India. 3. It was present in portfolio of Akash Bhansali. 4. It is small cap company with market cap of 4 thousand crore |
| Honda power products | 1. It has around 75% market share in portable power generators. 2. It is multinational company with Honda India being the promoter of this company. 3. It is small cap company with market cap of around 2 thousand crore |
| Lakshmi Machine Works | 1. It is one of the leading company of World in Textile machinery 2. It has market share of around 50% in textile machinery 3. It is present in portfolio of Nemish Shah the famous investor. 4. It is mid cap company with market cap of around 12 thousand crore |
| Mazagaon dock | 1. It is the only submarine manufacturing company in India. 2. It has complete monopoly in submarine manufacturing 3. It is Government of India enterprise catering defense sector 4. It is mid cap company with market cap of around 10 thousand crore. |
| NOCIL | 1. It has market share of around 40% in rubber chemical. 2. It was present in portfolio of two top investors of India Dolly Khanna and Ashish Kacholia 3. It is one of the EV theme play stock as well. 4. It is small cap company with market cap of 4 thousand crore. |
| Sundram Fasteners | 1. It has more than 40% market share in Fasteners. 2. It is one of the TVS group of stocks. 3. The number of listed companies in this space is less than 5 with this being the largest one 4. It is mid cap company with market cap of 20 thousand crore. |
| Zydus Wellness | 1. It has whooping 90% market share in Sugar free products/ 2. The brands from this company has become synonymous with products itself 3. It is small cap company with market cap close to 9 thousand crore. |
Conclusion
Above I have tried to list down some of the relatively under known companies which have significant market share and are present in growth sector. There are many more companies which can make the list. I am planning to come up with complete list of such companies and share it in excel format. This will help visitors download the file and use it as reference going forward for their own research.
For the time being you can enjoy the above list.