Monopoly businesses have no or little market competition due to a single-player existence. Monopolistic enterprises benefit from economies of scale, resulting in lower average costs. such companies usually control the market and are solo or large players in the market.
Here are two monopoly stocks trading at a discount of up to 34% from their 52-week high
Dreamfolks Services Ltd
Dreamfolks Services Ltd is India’s largest airport service aggregator platform facilitating an enhanced airport experience to passengers leveraging a technology-driven platform.
The company’s shares are down 34 percent from its 52-week high of Rs 846.75 apiece.
The company belongs to the small-cap category with a market capitalization of Rs 2,957 crore. On Thursday, company shares were trading at Rs 558.60 a share, a gain of 1.70 percent from the previous close price.
The company’s revenue increased 65 percent yearly, from Rs 171 crore in Q2FY23 to Rs 282 crore in Q2FY24. Furthermore, Net profit has increased by 20 percent from Rs 15 crore to Rs 18 crore.
In India, the company has a 68 percent market share in lounges, a 22 percent market share in exclusive airport lounges, and a 95 percent market share in card-based lounge access.
The company operates 1,500 touchpoints in 540 locations and 121 countries as of March 31, 2023. Additionally, the business manages 60 lounges around India.
To increase revenue growth, the firm has partnered with domestic airports. As well as the company has expanded its footprint in the railway industry. Presently the company has its presence in 10 train lounges.
C.E. Info Systems Ltd
C.E. Info Systems(MapmyIndia) provides navigation, tracking, IoT, analytics, and web mapping services for desktop and mobile devices to companies such as Olx, Flipkart, Uber, Phonepe, and many more.
Additionally, the company provides GPS tracking devices, automobile in-dash infotainment, street view, and public transportation information.
The company’s shares are down 17 percent from its 52-week high of Rs 2,340 apiece.
The company belongs to the small-cap category with a market capitalization of Rs 10,465 crore. On Thursday, company shares were trading at Rs 1,936.50 a share, down 0.18 percent from the previous close price.
C.E. Info Systems Ltd is India’s largest navigation platform, which supports a wide range of navigation software and hardware platforms, with a market share of 95% in-dash navigation market.
The company’s revenue increased 19 percent yearly, from Rs 67 crore in Q2FY23 to Rs 80 crore in Q2FY24. Furthermore, Net profit has increased by 31 percent from Rs 26 crore to Rs 34 crore.
The company serves four major markets such as direct customers, the automotive sector, mobile internet, and enterprises and government.
In FY23, 1.9 million new automobiles were registered with MapmyIndia, a 46% increase from 1.3 million in FY22 because of the high penetration of the Fin-tech industry.
Written by Omkar Chitnis
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