Monopoly stocks are increasingly attractive to investors seeking stability and high returns. These companies dominate their respective markets, often enjoying minimal competition and strong pricing power. As we approach 2024, several monopoly stocks stand out for their impressive return ratios, making them worthy additions to your watchlist.
Here are a few Monopoly Stocks with high return ratios to add to your watchlist:
Central Depository Services (India) Ltd
Central Depository Services (India) Ltd (CDSL) has a market cap of Rs.32,562 crore. On Monday, its share price is trading at Rs.1,518.75, down 0.17 percent from the prior close. Over the past five years, CDSL’s stock has surged by more than 1,250 percent.
Regarding financial ratios, the company’s ROCE (Return on Capital Employed) is currently at 46.12 percent and ROE (Return on Equity) is currently at 34.85 percent. The company has a current ratio of 2.42 and a nil debt-to-equity ratio.
According to its latest financial update, CDSL reported net sales of Rs.322.26 crore for Q1 FY25, marking a 55 percent year-over-year growth. Net profit for the quarter reached Rs.161.96 crore, up 49 percent over the same period.
As a key part of the capital market, CDSL supports exchanges, clearing corporations, depository participants (DPs), issuers, and investors by holding securities in electronic form and facilitating transactions. As of June 2024, it accounted for 77 percent of all demat accounts.
Indian Railway Catering and Tourism Corporation
With a market capitalization of Rs.66,556 crore, Indian Railway Catering and Tourism Corporation (IRCTC), saw its share price trading at Rs.806.50 on Monday, down 1 percent from the prior close. Over the past five years, IRCTC’s stock has surged by more than 360 percent.
In terms of financial ratios, the company’s ROCE is currently at 45.05 percent and ROE is currently at 34.4 percent. The company has a current ratio of 1.97 and a low debt-to-equity ratio of 0.02.
According to its latest financial update, IRCTC reported net sales of Rs.1,120.15 crore for Q1 FY25, marking a 33 percent year-over-year growth. Net profit for the quarter reached Rs.161.96 crore, up 49 percent over the same period.
The Indian Railway Catering and Tourism Corporation (IRCTC) functions as a government-owned monopoly in the Indian railway industry, offering key services like online ticket booking, catering, and packaged drinking water.
Dreamfolks Services Ltd
With a market capitalization of Rs.2,437.45 crore, Dreamfolks Services Ltd, saw its share price closing at Rs.464.05 on Monday, up 0.25 percent from the prior close. Over the past year, the stock has fallen over 10 percent.
In terms of financial ratios, the company’s ROCE is currently at 38.61 percent and ROE is currently at 29.19 percent. The company has a current ratio of 2.31 and a low debt-to-equity ratio of 0.03.
According to its latest financial update, Dreamfolks Services reported net sales of Rs.320.8 crore for Q1 FY25, marking a 20 percent year-over-year growth. Net profit for the quarter reached Rs.17.15 crore, up 32 percent over the same period.
Dreamfolks Services Ltd is regarded as a monopoly stock due to its strong market presence in India’s airport services sector. Holding a substantial 97 percent market share in the card-based lounge access segment, Dreamfolks stands as the largest player in this specialized market.
Written by – Siddesh S Raskar
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