- Sectors like defence arms manufacturing, online railway ticketing, commodity exchange have very few players giving companies like HAL, IRCTC, MCX an opportunity to fly higher.
- Here is a list of such companies that hold more than 80% of market share in their respective fields.
- Common investment approach among investors has always been to invest in companies that hold dominant positions in their respective field.
One common understanding in investment approach is to bet on those with leading positions in a particular industry. You must have heard from your friends or colleagues that companies like Nestle, Hindustan Unilever hold market leading positions in the fast moving consumer goods (FMCG) space. Although these companies own a good chunk of market share there is still a lot of competition entering their space and eating up their market share. The point is there are sectors like defence arms manufacturing, online railway ticketing, commodity exchange which have very few players. This gives immense opportunities for those few companies to grab the entire market share.
Here is a list of such companies that hold more than 80% of market share in their respective fields: