Monopoly stocks are shares of companies that have little to no competition in their market. These companies dominate their industry and are often the only significant players. Due to minimal competition, they control prices and make more profit. As a result, these companies hold a large share of the market and are often considered stable investment options due to their market power.

Additionally, if you hold monopoly stocks for a long period, they can provide significant returns. However, before investing, it is important to study the company’s history, its future goals, and also its financial statements. Such an assessment makes you understand if the company can maintain its market dominance and continue growing. In this article, we will check out the top 7 monopoly stocks that you can consider while investing. 

• Monopoly stocks are shares of companies that dominate their industries with little to no competition.
• These stocks generate stable returns due to their strong market positions.
• Some popular monopoly stocks in India are IRCTC, HAL, ITC, Pidilite, Coal India, Nestle, and more.

Below is a list of the top 7 monopoly stocks of companies that enjoy strong or dominant market positions and have a large customer base (data as of February 22, 2025):

1. Indian Railways Catering and Tourism Corporation (IRCTC)

IRCTC is the only company in India managing railway-related services. It's a “government-owned organisation” and part of one of the world’s largest rail networks. Since no other company provides similar services, IRCTC has no competition. Investors must note that rail networks like this are called "natural monopolies". That’s because building such vast rail systems is not practically feasible for private companies.

2. Hindustan Aeronautics Limited (HAL)

HAL is a major player operating in India’s defence and aviation sector. The company was founded in 1940. It was created by Wal Chand Hira Chand and the Mysore government to build aeroplanes. Now, it is a government-owned company that manufactures aeroplanes, jet engines, helicopters, and their parts. As one of the few companies in this field, it holds a monopoly in India’s aviation and defence production industry.

3. Nestle India

Nestle India is a monopoly stock operating in the nutrition and health sector. It is especially known for its Cerelac brand, which is a baby food for infants over six months. The company was originally founded in Switzerland in 1866. Nestle has been in India for over 100 years.

In the infant food market, the company dominates as the clear leader due to its century-long presence and trusted products. This makes it a major monopoly in this segment.

4. Coal India

Coal India Ltd is the world’s largest coal producer. This company is government-owned and is managed by the Ministry of Coal. It contributes 82% of India's total coal production, which makes it a dominant player in the industry. However, the Indian government recently began allowing private companies to enter the coal mining sector for commercial purposes. This might reduce Coal India’s monopoly and increase competition in the industry.

5. Hindustan Zinc

Hindustan Zinc Ltd. is the world’s second-largest producer of zinc and lead. It holds about 75% of India’s zinc market. Also, the company is the third-largest silver producer in the world. It started in 1966 as a government project under the Metal Corporation of India.

Now, Vedanta Ltd owns 64.9% of the company, while the Indian government still holds a 29.5% stake. With the second-highest zinc R&R base globally and 25+ years of mine life, the company holds a dominant position in its industry and is considered a monopoly stock.

6. ITC

ITC was originally a tobacco manufacturing company. Gradually, it has grown into a large conglomerate, with interests in several sectors like FMCG, Stationary, Ready-to-eat foods, and more. The company still controls 77% of India’s cigarette market, which makes it a monopoly in the industry.

7. Pidilite Industries

Pidilite Industries is known for its popular products like Fevicol, M-seal, and Dr. Fixit. The company dominates the adhesives and industrial chemicals market in India. It has a wide range of products and a strong market presence.  

If you are looking for safe investment option, then you can consider investing Bajaj Finance Fixed Deposit. With a top-tier AAA rating from financial agencies like CRISIL and ICRA, they offer one of the highest returns, up to 8.85% p.a.