Hi Guys,

For an investor, the best investment would be in companies which are monopolies and whose products are in great demand. But in real life we barely come across such companies. In India most of the monopolies are Govt. controlled and so they are not great from an investment point of view.

I am looking for companies which are oligopolies and also satisfy the follow criteria.

 

è Companies with negligible debt

è Companies which are not capital intensive

è Companies which are not cyclical

è Companies whose primary product(s) is non commodity

è ROE must be consistently greater than 20%

è The market is not completely saturated.

 

Let me give some examples that I have in mind.

 

1)      Credit Rating Agencies(CRISIL, ICRA, Fitch, CARE)

2)      Paints (Asian Paints, Nerolac , Berger )

3)      Adhesives (Pidilite Industries)

 

Now it is up to you, intelligent reader, to come up with more companies and explain why they deserve our attention.

 

I have been wondering. Are any of the condom companies listed? I mean somebody exclusively into condoms. This is one good non-cylical business, capex is very less.

 

Just some random thoughts!

Edited by omshivaya - 21/Feb/2008 at 1:09am

Another company that comes to my mind is Gillete, the Indian avatar /competition to it is the company who makes Supermax /Topaz blades (It is Malhotra Group company - not listed),  Every other barber uses these blades. You cant have many companies in this field (high entry barriers because of the technology it requires...

Shh... I hope adag or Mag is not reading these  posts..

Nahi to papa ka sapna har ghar mai razor ho apna...

guj gas has delivered vey good results can anyone discuss this co in alittle more detail, how do they need to grow in order to maintain the current growth rate, or has the increase come becos of increase in gas prices