Could these two monopoly businesses still generate solid returns?
Subscribe to enjoy similar stories. MUMBAI : Investing can sometimes feel overwhelming, with so many options available. One strategy that often stands out is focusing on monopoly businesses.
These are companies that dominate their industries, holding a large share of the market with little competition. Because of their strong position, they can consistently generate steady profits, making them reliable choices for investors looking for stability and good returns. So, why are monopoly businesses worth keeping an eye on? Their market dominance ensures regular earnings and gives them the power to invest in growth and innovation.
This makes them resilient, even when the economy faces challenges. In today’s post, we’ll explore why these powerhouse companies should be on your investment radar and introduce some top Indian stocks that exemplify these qualities. Market share: 70% in adhesives Historical 10-year compound annual growth rate (CAGR) stock return: 22% Pidilite Industries is a cornerstone in India's adhesives market, holding an impressive 70% market share.
In 2023, the company achieved robust growth, attributed to the quality of its product portfolio and effective execution strategies. Over the past decade, Pidilite has maintained a solid sales CAGR of around 11%. Its operating profit margins have remained stable at approximately 28%, the best among its competitors, and net margins have consistently hovered around 22%, showcasing one of the strongest performances in the industry.
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