Monopoly stocks enjoy the benefit of having no competition in their industry and hence generate more profits. If you’re able to pick a good monopoly stock in the right industry and at a lower valuation, it can generate consistent wealth for you in the long term.
During the recent market crackdown of 2022, even the shares of monopoly companies are affected and hence currently trading at lower share prices. Here’s are four monopoly stocks in India that are trading at over -40% discount from their 52-weeks high:
1. MCX
Multi Commodity Exchange limited or MCX is the only publically listed company in the Indian stock market that operates as a commodity futures exchange in India. It offers an online trading platform for a wide range of commodity trades, including commodity derivative transactions.
The MCX practically has a monopoly with a 96.48% share in the commodity derivatives market. It controls 100% share of Precious metals & stones, Energy & base metals. However, it commands a share of only 22.2% in the agri-commodities sector.
MCX Stocks are currently trading at the share price of Rs 1,151, which is -46.06% lower than its 52-week high of Rs 2,134. The stock has a 52–week low of Rs 1,149.
On April 18, 2022, HDFC Securities gave a buy call on the shares of the Multi Commodity Exchange of India with a target price of Rs 2050. The shares are trading at ₹1151.00 levels, therefore, this translates to an upside of 78.10% within a time span of one year.
2. IEX
Indian Energy Exchange or IEX is an Indian electronic system-based power trading exchange regulated by the Central Electricity Regulatory Commission. It is India’s major electricity exchange which enjoys a virtual monopoly by accounting for 95% of the short-term electricity contracts traded over exchanges in India.
As of 15 May 2022, IEX Stocks are currently trading at the share price of Rs 186.80, which is -41.39% lower than its 52-week high of Rs 318.72. The IEX stock has a 52–week low of Rs 114.37.
3. CAMS
Computer Age Management Services Limited or CAMS, incorporated in 1988, is a mutual fund transfer agency to Indian asset management companies. It provides distributor, and asset management companies (AMC) services. With an approx market share of 70% based on Mutual Funds AAUM, CAMS is India’s largest registrar and transfer agent. It also has a 40% market share as an insurance repository.
CAMS stock is currently trading at the share price of Rs 2,150 with the 52-week low price of Rs 2,141. The stock has declined over -21.25% so far in 2022 YTD and plunged by -47.10% from its 52-week high.
ICICI Direct has given a ‘BUY’ call for a Target price of Rs 2,760 on CAMS shares, whereas HDFC Securities has set a target price of Rs 2,885.
4. IRCTC
IRCTC, founded in 1845, is a ‘Natural Monopoly’ company that is a state-owned entity and the only player in the Indian markets that operate in its Industry. Indian railway is one of the largest railways in the world and is one of the world’s largest employers.
As of 15 May 2022, IRCTC Stocks are currently trading at the share price of Rs 652, which is -49.01% lower than its 52-week high price of Rs 1,278. The IRCTC stock has a 52–week low of Rs 346.
