Despite recent quarterly misses among monopolistic enterprises, investors should maintain focus on companies with strong fundamentals and market dominance. Such businesses typically demonstrate resilience through economic cycles, possess pricing power, and hold strategic importance in their sectors. This suggests potential for long-term value creation despite short-term volatility.
1. Coal India Ltd
Founded in November 1975, Coal India Ltd (CIL) is headquartered in Kolkata, West Bengal. As the world’s largest coal producer, CIL plays a crucial role in powering India’s economy. The company operates extensively across eight Indian states, managing 322 mines, including underground, opencast, and mixed mines. In FY 2023-24, CIL achieved a record 773.6 million tonnes of coal production, marking a 10% increase over the previous year.
CIL dominates the coal industry with an 82% share of India’s coal output. It operates through key subsidiaries like Bharat Coking Coal Ltd and Eastern Coalfields Ltd., and its product line includes coking and non-coking coal types.
Coal India Limited’s revenue has increased from Rs. 1,42,324 crore in FY23 to Rs. 1,38,252 crore in FY24, which is up by 2.9 percent. The net profit of the company has also increased by 17.7 percent from Rs. 31,723 crore in FY23 to Rs. 36,013 crore in FY24.
Quarterly performance has been less than what estimates have predicted. Revenue has declined from Rs. 36,465 crore in Q1 FY24 to Rs. 30,673 crore in Q2 FY25, a 15.8% decline. Furthermore, profit has also shrank and declined by 42.6% to 6,275 crore.
2. Indian Railway Catering and Tourism Corporation (IRCTC)
Founded on September 27, 1999, the Indian Railway Catering and Tourism Corporation (IRCTC), based in New Delhi, is essential to the Indian Railways. Tasked with providing catering, ticketing, and tourism services, IRCTC is the sole authorised entity for online railway ticketing in India, managing millions of bookings daily. Additionally, IRCTC oversees catering services on trains and at stations, organises package tours, and provides bottled water under its “Rail Neer” brand.
IRCTC’s wide range of services and innovations, such as travel insurance and digital enhancements, make it a central player in India’s travel sector.
IRCTC Limited’s revenue has increased from Rs. 3,541 crore in FY23 to Rs. 4,270 crore in FY24, which is up by 20.5 percent. The net profit of the company has also increased by 10.4 percent from Rs. 1,006 crore in FY23 to Rs. 1,111 crore in FY24.
Quarterly performance has been less than what estimates have predicted. Revenue has declined from Rs. 1,118 crore in Q1 FY24 to Rs. 1,064 crore in Q2 FY25, a 4.8% decline. Furthermore, profit is the same as the previous quarter, only moving up by 0.04% without any substantial movement.
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3. Hindustan Aeronautics Ltd (HAL)
Established on December 23, 1940, Hindustan Aeronautics Ltd (HAL) is headquartered in Bengaluru, Karnataka, and stands as one of the largest aerospace and defence manufacturers globally. The company designs, manufactures, and maintains aircraft, helicopters, and engines, including the indigenous Tejas Light Combat Aircraft. With an impressive array of products, HAL is the backbone of India’s defence sector, providing equipment crucial to modernising the Indian Armed Forces.
Recognised as a ‘Maharatna’ company, HAL’s current projects include the Advanced Medium Combat Aircraft and Light Combat Helicopter, driving forward India’s aerospace self-sufficiency.
Hindustan Aeronautics Limited’s revenue has increased from Rs. 26,928 crore in FY23 to Rs. 30,813 crore in FY24, which is up by 14.4 percent. The net profit of the company has also increased by 30.7 percent from Rs. 5,811 crore in FY23 to Rs. 7,595 crore in FY24.
Quarterly performance has been less than what estimates have predicted. Revenue has declined from Rs. 14,769 crore in Q1 FY24 to Rs. 4,348 crore in Q2 FY25, a 70.5% decline. Furthermore, profit has also shrank and declined by 66.54% to 1,436 crore.
4. Hindustan Zinc Ltd
Founded on January 10, 1966, and headquartered in Udaipur, Rajasthan, Hindustan Zinc Ltd (HZL) is a major global producer of zinc and other metals like lead and silver. HZL operates several large mines, including Rampura Agucha and Sindesar Khurd, known for their high production capacities. With advanced smelting facilities, HZL produces over one million tonnes of zinc and lead annually, positioning itself as a global leader in non-ferrous metals.
As a subsidiary of Vedanta Limited, HZL has been instrumental in expanding India’s production capacity and commitment to sustainability. With a recent focus on increasing silver production, HZL is driving forward with robust financial performance, CSR initiatives, and environmental stewardship.
Hindustan Zinc Limited’s revenue has decreased from Rs. 34,098 crore in FY23 to Rs. 28,934 crore in FY24, which is down by 15.1 percent. The net profit of the company has also declined by 25.9 percent from Rs. 10,520 crore in FY23 to Rs. 7,787 crore in FY24.
Quarterly performance has been less than what estimates have predicted. Revenue has increased from Rs. 8,130 crore in Q1 FY24 to Rs. 8,242 crore in Q2 FY25, a 1.3% increase. Even though revenue increased, profit has declined by 2.5% to 2,298 crore.
Written By Fazal Ul Vahab C H
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