Monopoly stocks are companies that dominate their industry with zero competition. These companies have a lot of control over prices and have very few rivals making them more interesting to investors looking for stable and profitable investments. They often have strong market power and are hard for new companies to compete with.
Return on Equity (ROE) measures how effectively a company uses shareholders’ money to generate profits while the Return on Capital Employed (ROCE) measures how well a company uses its total capital, including debt and equity, to generate profits.
Here are a few monopoly stocks that yield High ROE and ROCE to keep under your watch:
Indian Railway Catering & Tourism Corp Ltd
With a market capitalization of Rs 82,144 crores, the shares of Indian Railway Catering & Tourism Corp ( IRCTC) closed at Rs 1,017.95 per share on Friday’s trading session up by 0.04 percent.
Taking a look into the financials of IRCTC On a year-on-year basis, the revenue from operations increased by 23.7 percent from Rs. 3,541 crores in FY22-23 to Rs 4,270 crores in FY23-24. Also, the net profits of the firm increased by 10.4 percent from Rs. 1,006 crores in FY22-23 to Rs 1,111 crores in FY23-24.
As of March 2024, the ROE stood at 34.40 percent while The ROCE was at 45.48 percent.
IRCTC is the only company authorized by the Indian government to provide online railway tickets, catering services, and packaged drinking water at railway stations and trains in India.
Dreamfolks Services Ltd
With a market capitalization of Rs 2,550.55 crores, the shares of Dreamfolks Services Ltd closed at Rs 481.00 per share on Friday’s trading session up by 0.24 percent.
Taking a look into the financials of Dreamfolks Services Ltd, On a year-on-year basis, the revenue from operations increased by 46.8 percent from Rs. 773 crores in FY22-23 to Rs 1,135 crores in FY23-24. Also, the net profits of the firm decreased by 5.4 percent from Rs. 73 crores in FY22-23 to Rs 69 crores in FY23-24.
As of March 2024, the ROE stood at 29.39 percent while The ROCE was at 38.53 percent.
Dreamfolks Services Ltd was established in the year 2008. It is India’s only biggest platform for airport services which uses technology to improve the airport experience for passengers. DreamFolks Services has a monopoly in the Indian airport lounge access market. The company holds a market share of 97 percent in this line of business.
C. E. Info Systems (MapmyIndia) Ltd
With a market capitalization of Rs10,625.15 crores, the shares of C. E. Info Systems (MapmyIndia) Ltd closed at Rs 1,965 per share on Friday’s trading session down by 0.20 percent.
Taking a look into the financials of C. E. Info Systems Ltd On a year-on-year basis, the revenue from operations increased by 34.8 percent from Rs. 281 crores in FY22-23 to Rs 379 crores in FY23-24. Also, the net profits of the firm increased by 24 percent from Rs. 108 crores in FY22-23 to Rs 134 crores in FY23-24.
As of March 2024, the ROE stood at 20.95 percent while The ROCE was at 26.76 percent.
CE Info Systems, also known as MapmyIndia, has a monopoly in the Indian digital mapping and navigation market. Its accurate mapping technique and strategic partnerships have given it a significant edge in the industry. The company has a market share of 95 percent in this line of business.
Written By Zahal
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