The companies operating in the stock market characterised by limited or zero competition are referred to as monopoly stocks.
Such companies enjoy a dominant stance within their respective industries, thereby hindering the entry of potential competitors and safeguarding their market position.
Here are three monopoly stocks that are currently trading at a discount of up to 26 percent each from their 52-week highs.
Sealmatic India Limited
With a market cap of Rs. 570.2 crores, the share price of the company moved up by nearly 0.93% on BSE to Rs. 646 in the morning trading session on Wednesday, compared to its previous closing price of Rs. 640.
Share price of Sealmatic India Limited hit its 52-week high on February 2024 at Rs. 869, and when compared to the current market price, there is a discount of around 25.66 percent.
In terms of financials, the company’s revenue from operations grew by nearly 42.3% YoY from Rs. 26 crore in Q2 FY22-23 to Rs. 37 crore in Q2 FY23-24, accompanied by an increase in net profit of 40% from Rs. 5 crore in Q2 FY22-23 to Rs. 7 crore in Q2 FY23-24.
The company has delivered about 173.5 percent of multibagger returns in the last one year and nearly 28.8 percent in the last six months. So far in 2024, it has given positive returns of around 11.9 percent.
Incorporated in 2009, Sealmatic India Ltd. is a leading manufacturer of heavy-duty mechanical and provides the widest portfolio of seals and seal supply systems.
It is the only mechanical seal company in India that has received ISO 19443 accreditation for Nuclear Applications and is India’s only domestic manufacturer or monopoly company in mechanical seal production.
C.E. Info Systems Limited
The share price of the company in the morning trading session jumped by nearly 1.04 percent to Rs. 1,757.7 on March 20th, compared to its previous closing price of Rs. 1,739.4 and has a market cap of Rs. 9,475.5 crore.
Share price of CE Info Systems hit its 52-week high of Rs. 2,340 in November 2023, and when compared to the current stock price, there is a discount of around 24.88 percent.
The company’s revenue from operations increased by around 1.09 percent QoQ from Rs. 91 crore in Q2 FY23-24 to Rs. 92 crore in Q3 FY23-24.
However, on a quarter-on-quarter basis, the company witnessed a fall in net profit by 6.06 percent from Rs. 33 crore in Q2 FY23-24 to Rs. 31 crore in Q3 FY23-24.
It has given positive returns of about 1.91 percent in the past six months and nearly 66.4 percent in the last one year. However, so far, the company has given around 9.01 percent of negative returns in 2024.
Incorporated in 1995, C.E Info Systems Limited also known as Map My India is the leading provider of digital maps, geospatial software and location-based IoT technologies in India serving B2B and B2B2C enterprise customers. It has a presence in India as well as Tokyo and San Fransisco.
In the year 2021, the company launched real-time maps of Covid vaccine centres on CoWIN and in the same year, it also went public and got listed on the Indian stock exchanges.
Multi Commodity Exchange of India Limited
With a market capitalisation of Rs. 16,196.8 crores, the share price of the company moved up by nearly 1.43% on BSE to Rs. 3,224.55 in the morning trading session of Wednesday, from its previous closing price of Rs. 3,178.95.
MCX’s shares hit a 52-week high on February 2024 at Rs. 3,990.2, representing a discount of about 23.74 percent from the current market price.
The revenue from operations of the company increased by 16 percent QoQ to Rs. 191.53 crore in Q3 FY23-24 from Rs. 165.11 crore in Q2 FY23-24.
However, the net profit of the company is Rs. -5.35 crore in Q3 FY23-24, a growth of 71.94 percent on a quarter-on-quarter basis from a loss of Rs. 19.07 crore in Q2 FY23-24.
The company has delivered about 114.6 percent of multibagger returns in the last one year and nearly 84.9 percent in the last six months. So far in 2024, it has given positive returns of around 0.33 percent.
MCX offers online trading in commodity derivatives transactions across varied segments including bullion, industrial metals, energy and agricultural commodities, as well as on indices constituted from these contracts.
It is India’s first listed exchange to introduce commodity options, and futures contracts on bullion, base metals and energy indices.
The company controls more than 95.3 percent of the market share in commodity Futures turnover and around 99.72 percent in commodity Options. It holds a monopoly on the trading of precious metals, energy, and base metals.
Written by Shivani Singh
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