Do you know that there are some companies in India without which our economy will literally stop? But the interesting thing is that you may have never heard of them. These companies seem boring, but the real hidden gem is here.
In today’s post, we will talk about 7 such monopoly companies whose entry barriers are so high that no one can replace them. And there are also growth factors. Now, as soon as you hear “monopoly,” you will say that we have seen a video of a very monopoly stock. So this is different.
Let’s start.
1. OCCL (Oriental Carbon and Chemical Limited)
The first company is OCCL. Yes, Oriental Carbon and Chemical Limited. In making tyres, rubber is glued with steel wire. Insoluble Sulphur is produced by only 3-4 companies worldwide, including OCCL.
- Market Share: In India, there is almost a monopoly. And if we talk about the global share, it is 12%.
- Growth Driver: In commercial vehicles, demand will increase as radial tyres gain adoption. In simple terms, it has become the backbone of the tyre industry due to the adoption of radial tyres.
To identify such a company, it is important for you to understand how entry barriers, client dependency, and market share are analysed.
Note: I am not giving any buy-sell advice. Plus, it is very important for every company to have a fundamental analysis. So in today’s post, I have only covered the monopoly. This does not mean buy-sell. Rather, we have to analyse its fundamental ratio.
2. Triton Valve
The second stock is Triton Valve. The most critical part of the tyre is the valve. If the valve fails, the tyre fails.
- Market Share: In India, Triton has a 50-60% market share. Because these are safety products, these people do not switch to a new OEM supplier quickly.
- Growth Driver: Tubeless plus high-pressure tyres, EVs, and industrial valves.
Once the OEM is approved, the monopoly runs for a decade. This is called a precise understanding of the business. You will only understand when you understand the business’s work precisely. Otherwise, you mostly see the same normal monopoly on social media, and you are happy with it.
3. Kirloskar Pneumatic
The third stock is Kirloskar Pneumatic. It is in the compression, refrigeration, and transmission system. A large part of India’s CNG network runs on compression. Even in the railway and defence sectors, some parts are made where the position is like a monopoly.
- Growth Driver: CGD expansion, LNG imports, and a self-reliant India are being supported.
4. Jamuna Auto
The fourth company is Jamuna Auto, which is India’s largest suspension manufacturer.
- Market Share: 65%. Plus, a domestic commercial vehicle is in suspension.
- Clients: If you go to the client list, there are big names like Tata, Ashok Leyland, Mahindra, Bharat Benz, Volvo, and Eicher.
- Growth Driver: If you look at the growth driver, then logistics, e-commerce boom, and EV suspension—all these things give a boost.
To reiterate, this post does not offer buy or sell recommendations. Approximately six to seven out of every ten trucks in India use Jamuna’s suspensions. It is essential to understand why certain stocks perform well by assessing their business fundamentals.
5. GMM Pfaudler
The fifth company is GMM Pfaudler, a maker of glass-lined items for the pharmaceutical and chemical industries.
- Market Share: More than 50%.
- Clients: Dr Reddy’s, Sun Pharma, and Aarti Industries.
- Growth Driver: The China Plus Strategy and Pharma’s expansion plan are key drivers of growth.
6. VST Tillers Tractors
If we talk about part 6, then VST Tillers. What product are they making? Power Tillers and Compact Tractors.
- Market Share: 60%.
- Growth Driver: The Rural area. And what is there still? Only 40-45% of the work is on the mechanism.
VST Tillers serves as a direct proxy for the growth of rural India.
7. La Opala
The seventh company is La Opala, the market leader in opal glass tableware. Share your preferred company in the comments. La Opala maintains a leading position in this sector.
- Market Share: More than 50%.
- Growth Drivers: The rising middle class, gifting culture, and hotel expansion are key drivers of growth.
La Opala is considered the Titan of branded crockery today. Which of these stocks do you believe could become a significant wealth creator in the next 10 years? Share your thoughts in the comments.
