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.
Following are the three stocks with a market share of over 70% in their respective industry:
Incorporated in 1961, 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. 7,111.8 crores, the stock jumped by 6.2% on BSE to Rs. 499 on Tuesday, as against its previous closing price of Rs. 470.
Gabriel is a leading manufacturer of suspension components—shock absorbers and struts—in India. The company holds a 31% market share in the 2-wheeler and 3-wheeler segments, a 23% market share in the passenger vehicle segment, and an 89% market share in the commercial vehicle category.
As of FY24, Gabriel stands as the market leader in the aftermarket for ride control products, with a ~40% market share in India, and a robust logistics network comprising 664 dealers and 12,000 retailers.
In the total utility vehicle (UV) sales, Gabriel India has a 35% market share as of FY24, while the share of UV sales in the Gabriel Passenger Vehicle business stands at 64%.
The company’s revenue climbed 12.5% QoQ, rising from Rs. 815 crores in Q3FY24 to Rs. 917 crores in Q4FY24, accompanied by an increase in net profit by 19.5%, rising from Rs. 41 crores to Rs. 49 crores, during the same period.
Incorporated in 1995, C.E. Info Systems Limited, popularly known as Mapmylndia, provides digital map data, GPS navigation and location-based services, software and customising its products to customers (combined) through royalty, annuity, and subscription.
With a market capitalisation of Rs. 12,083.5 crores, the shares of India’s largest navigation platform jumped by 3.7% to Rs. 2,234.75 on Tuesday, as against its previous closing price of Rs. 2,155.55.
C.E. Info Systems holds an 80% market share in Automotive OEMs navigation software.
The company is confident of achieving its revenue goal of Rs. 1,000 crore by April-March 2027-28 supported by a 10x growth in the Internet of Things (IoT) business, which operates on a Software as a Service (SaaS) model in conjunction with a hardware component, as reported by a few sources.
The company’s open order book stood at Rs. 1,372 crore in FY24, as against Rs. 918 crore in FY23, indicating a growth of 49%, while the annual new order bookings increased by 63% from Rs. 512 crore to Rs. 834 crore over the same period.
The company’s revenue from operations climbed 48.6% YoY, rising from Rs. 72 crores in Q4FY23 to Rs. 107 crores in Q4FY24. Similarly, the net profit grew by 35.7%, rising from Rs. 28 crores to Rs. 38 crores, during the same period.
Looking at the company’s 3-year track record, revenue has grown at a 38% CAGR and EBITDA margins and PAT margins have been consistently above 40% and 30% respectively.
Dreamfolks Services Limited primarily integrates global card networks operating in India, card issuers, and corporate clients including airline companies with various airport lounge operators, transport operators and other airport service providers on a unified technology platform.
The company facilitate customers of clients to access airport-related services including lounges, food and beverages, spa, meet and assist, airport transfer, and transit hotels/nap room access.
With a market capitalisation of Rs. 2,427 crores, the shares of India’s largest airport service aggregator platform jumped by 1.7% on BSE to Rs. 459 on Tuesday, as against its previous closing price of Rs. 451.2.
DreamFolks enjoys a market share of over 95% in the domestic lounge access market for India-issued debit and credit programs, a 68% market share in overall lounge access and is the leading playerin the Indian lounge aggregation industry, with 100% coverage in both Airports & Railway.
In FY23-24, the company has 65 lounges, while it targets to increase it to 295 lounges by 2040.
The company’s revenue from operations climbed 18% YoY, rising from Rs. 238 crores in Q4FY23 to Rs. 281 crores in Q4FY24. However, the net profit declined by 28%, falling from Rs. 25 crores to Rs. 18 crores, during the same period.
Written by Shivani Singh
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