A market leader is a company that holds the largest market share within a particular sector or industry, and such market leader companies enjoy the highest profitability margins.
Market leaders control the market by influencing client loyalty, distribution, price, and other aspects of the market. The market leader typically has a first-mover advantage in a new market.
Here are five stocks with a market share of up to 89% in their respective industry.
NOCIL Limited
Incorporated in 1961, NOCIL Limited manufactures rubber chemicals that are used by the tyre industry and other rubber processing industries.
The stock jumped by 1.03 percent on BSE to Rs. 264.4 in Friday’s trading session, compared to its previous closing price of Rs. 261.7, and has a market capitalisation of Rs. 4,376.12 crore
With a 40 percent market share, NOCIL is a market leader in the rubber chemicals industry and is one of the few companies in the world offering a wide range of products that include more than 20 rubber chemicals.
NOCIL’s FY22–2023 turnover increased by 3 percent YoY to Rs. 1,617 crore. The main driver of this growth was consistent domestic demand, as domestic volumes witnessed a growth rate of about 5 percent. Higher realisations were also cited as the reason for the increase in revenue.
The company’s sales growth increased by 4 percent from Rs. 326 crores in Q3 FY22-23 to Rs. 341 crores in Q3 FY23-24, indicating strong growth in Q3 FY23-24. In the same time frame, the company’s net profit increased significantly by 58 percent, from Rs. 19 crores to Rs. 30 crores.
However, operating margins dropped from 18.2 percent in FY21–22 to 15.6 percent in FY22–23. The main cause of this decline can be higher utility costs brought on by higher energy expenses all year round.
Indiamart Intermesh Limited
Indiamart is India’s largest online B2B marketplace, connecting customers and providers, and is focused on integrating Small and Medium-Sized Enterprises (SMEs) into the new paradigm.
With a market capitalisation of Rs. 15,743.03 crore, the stock jumped by 1% on BSE to Rs. 2659.5 in Friday’s trading session, compared to its previous closing price of Rs. 2634.4.
The company controls over 60 percent of the online B2B classified market, making it the industry’s top player, with 7.3 million supplier storefronts and 160 million registered buyers in its portfolio.
The company has been diversifying its presence, and currently, metro cities account for 32% of total purchasers, tier-2 cities account for 25%, and the rest of India contributes for 43 percent.
The company’s sales climbed by 31 percent YoY to Rs. 985 crore in FY 22-23, while net profit increased by 4% to Rs 321 crore.
VST Tillers Tractors Limited
V.S.T.Tillers Tractors Limited, a joint venture with Mitsubishi Heavy Industries Ltd in Japan, manufactures engine components for both power tillers and tractors.
The company is the largest Indian manufacturer of tillers and 4WD Compact Tractors, as well as a prominent maker of other Tractors, Engines, and Transmissions. VST is the market leader in the sector, with a market share of more than 65 percent in India.
With a market capitalisation of Rs. 2,972 crore, the stock slumped by 3.13 percent on BSE to Rs. 3,449.85 in Friday’s trading session, compared to its previous closing price of Rs. 3,344.9.
In FY22-23, the company sold 38,247 Power Tillers, a 20.4 percent increase over the previous year, and 6,875 tractors, a 14 percent decrease over the previous year.
In FY22-23, VST Tillers’ sales increased by 18 percent YoY to Rs. 1,006 crore, while the net profit fell by 7 percent to Rs. 92 crore.
Asahi India Glass Limited
The company is a leading integrated glass solution provider offering a wide range of products including laminated windshields, tempered glass for sidelights and backlights as well as value-added products like solar control glass, acoustic glass, defogger glass heated, and rain sensor windshields.
With a market capitalisation of Rs. 14,674.12 crore, the stock jumped by 2.03 percent on BSE to Rs. 620 in Friday’s trading session, compared to its previous closing price of Rs. 607.65.
Asahi India Glass Limited (AIS) is a leading glass solutions company with a 72 percent market share in the passenger car glass market and is the second largest manufacturer of float glass in India.
The company was formed as a Joint Venture between the Labroo Family, Asahi Glass Company of Japan, and Maruti Udyog Ltd (now Maruti Suzuki India Ltd).
One of India’s leading manufacturers of Float Glass, AIS has two state-of-the-art float glass manufacturing plants with a total production capacity of 1200 tons per day.
The company’s revenues have increased by 10 percent YoY from Rs. 1,014 crore in Q2 FY22-23 to Rs. 1,120 crore in Q2 FY23-24. However, the net profit declined by 17 percent from Rs. 104 crore in Q2 FY22-23 to Rs. 86 crore in Q2 FY23-24.
AIS is undertaking capex of over Rs. 1,500 crore over FY22-25 for capacity expansion (including capex of Rs. 250 crore on phases 2 and 3 of the auto glass plant in Gujarat), to be funded through debt and internal accrual.
The company’s revenue is diverse between auto glass (56% revenue contribution) and architectural glass (44%).
Gabriel India Limited
Gabriel India Ltd. is the largest producer and supplier of high-quality Ride Control Products such as shock absorbers, Struts, and Front forks for the Indian Automotive Industry catering to Passenger and Commercial vehicles.
With a market capitalisation of Rs. 5,401.01 crore, the stock jumped by 2.7 percent on BSE to Rs. 380 in Friday’s trading session, compared to its previous closing price of Rs. 369.8.
Gabriel is a frontrunner in the manufacture of suspension components (shock absorbers and struts) in India. With a 32 percent market share in the 2-wheeler and 3-wheeler categories, a 24% market share in the Passenger vehicle segment, and an 89% market share in the commercial vehicle category.
Gabriel is also the leading manufacturer of shock absorbers for new-generation vehicles in the 2 & 3-wheeler segment in India, including Electric Vehicles(EVs).
The company has initiated product design for EV OEMs such as OLA Electric, Okinawa, Ather Energy, and TVS in the e-2W category, and Bajaj, M&M, and Tube Investment in the e-3W category.
As of FY22, the company is the market leader in the aftermarket for ride control products and has a market share of over 40 percent in India, as well as a logistics network that includes 664 distributors and 12,000 retailers.
Gabriel India has a 35 percent market share in overall utility vehicle sales. Gabriel has received new programs such as the Jimny and the electric Citroen C3.
The business has long-standing technological collaborations with global giants including Yamaha Motor Hydraulic System Co Ltd, KYB Spain, and Kayaba Industry Co. to improve its product development capabilities.
The company’s revenue climbed 12 percent YoY, rising from Rs 720 crore in Q1FY23 to Rs 805 crore in Q1FY24, accompanied by an increase in net profit by 31 percent, rising from Rs. 32 crore to Rs. 42 crore.
Written by Shivani Singh
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