No of the market’s condition—be it a bull market, bear market, or even a market with no discernible trend—investors are constantly looking for lucrative stocks at discount pricing.
After all, who doesn’t enjoy a good deal?
Finding a stock that triples or quintuples in value is enticing.
Typically, the first step in doing that is to purchase a reliable stock at a discount.
But where to look for these stocks is the problem.
One strategy might be to concentrate on monopolistic stocks. High entry barriers and better margins favour monopolies.
Long-term wealth could be consistently generated by purchasing these stocks at a cheaper price.
Shares of several of these monopoly stocks are currently trading at lower prices as a result of the recent market correction.
Here are 5 Indian monopoly stocks that are currently trading at a discount of more than 35% to their most recent highs.
IRCTC is the first monopoly stock on our list.
The stock is presently selling for 50% less than its 52-week high price of $1,279.3.
Government organisations include the Indian Railway Catering and Tourism Corp (IRCTC). It is the only organisation that the Indian Railways has authorised to sell train tickets online. In this market, it effectively holds a 100% market share.
In addition, it holds a monopoly over the packaged drinking water sold aboard Indian trains.
Revenues at IRCTC have increased at a CAGR of 4.3% during the last five years. However, the CAGR growth for net profit was 25,3%.
Over the previous year, the company’s numbers had increased. In 2022, the business
IEX is the next item on our list.
The stock is presently selling for 48% less than its 318.6 USD 52-week high.
One of India’s two nodal power exchanges is called IEX. 95% of the short-term electricity contracts traded on the exchanges are accounted for by it. It essentially has a monopoly.
Revenue has increased at a CAGR of 16.5% over the last five years. However, there was a CAGR growth of 21.6% in net profit.
The increase is the result of the volume of electricity traded on the exchanges consistently rising.
The company’s revenue increased by 36% YoY in 2022 to 4.8 billion. Nevertheless, it recorded a 50% YoY increase in net profit to
We have Computer Age Management Services as the third item.
Its 52-week high price of 4,067.4 is now 42 percent below where it is currently trading.
The business offers services for transaction processing and customer support. Additionally, it engages in capital accounting and internet transactions. In terms of average assets under management for mutual funds, it holds a 70% market share.
Its revenue has increased at a CAGR of 13.7% during the last five years. Additionally, the net profit increased by 17.6% CAGR.
One of the key factors in the expansion was the asset service provided by mutual funds. The tendency toward digitization helped the growth even further.
The company’s revenue increased by 24% YoY in 2022 to reach 9.3 billion. Additionally, it revealed a YoY increase in net profit of 39%. Profit was fueled by high transaction volumes and fresh SIP registrations.
The business debuted its first cloud-based platform in 2022. For the year, it has added fifteen new customers.
Check out the company’s fact sheet and quarterly results to learn more about it.
The Multi Commodity Exchange comes in at number four on the list.
MCX is currently trading 40% below its 52-week high of 2,135 dollars.
It is India’s biggest futures exchange. Over 95% of the market is accounted for by it. It virtually controls the trading of bullion metals, base metals, and crude oil in India.
Trading volumes on the MCX increased as global stock market volatility increased. Its revenue has increased at a CAGR of 8.7% during the last five years. Additionally, the net profit increased by 4.4% CAGR.
The company’s revenue increased by 10% YoY to 1.4 billion in 2022. It also disclosed a
How do I buy stocks in monopolies?
Monopolies are difficult to establish and keep alive without government assistance.
Warren Buffett has often emphasised the value of making investments in businesses with moats.
A deep, broad trench that surrounds a castle, fort, or town is referred to as a moat. It acts as a deterrent to the assault.
It is a term used in investing to describe a company’s capacity to maintain a competitive edge over its rivals. The moat grows in size as the company gets stronger. The firm is weaker the lower the moat is.
These monopoly businesses all have wider moats. It’s because they control a sizable portion of the market. Due to this investment, they are able to make money even during tough times.
If you intend to purchase such stocks, evaluate the
