What makes a stock inflation proof? Generally, inflation hits an economy as a whole because all sectors are dependent on each other or the economy or the ultimate consumer who is subject to inflation. But in this article, we are going to look at some stocks that have been unhinged through market fluctuations in the past. In other words we are going to see some inflation proof stocks in India.
To get a headstart on this article, we must first understand what inflation means. Inflation is an increase in the price of goods and services in an economy which forms a disadvantageous position for the common man. Generally, inflation is caused by a rise in demand for the products that customers are willing to pay more money for. The opposite of inflation is deflation, a situation where prices tend to decline.
1. DLF
Delhi land & finance is a real estate company incorporated in the year 1946 and headquartered in Haryana. DLF is one of the largest real estate companies in India. They are well known for being the Title Sponsor for the first few editions of the Indian Premier League (IPL). DLF builds residential, office, and retail properties. DLF also indulges in road construction in Gurgaon. They have a Strong management team.
The shares are currently trading at ₹302.
| Stock Symbol | DLF |
| Market Cap | ₹ 74,754.41 Cr |
| P/E Ratio | 55.98 |
| Current Share Price | 302 |
2. Lypsa Gems & Jewellery
Founded in the year 1995, Lypsa gems is an India based jewellery company. They are engaged in trading, making, and polishing precious stones and ornaments. The company has been showing a consistent financial performance, especially with their increase in net profits in the last 3 quarters. The company seems to be fundamentally strong.
The shares are currently trading at ₹5.50
| Stock Symbol | LYPSAGEMS |
| Market Cap | ₹ 24.03 Cr |
| P/E Ratio | 343.88 |
| Current Share Price | 8.15 |
3. Colgate Palmolive
Colgate is one of the leading FMCG companies in India which was formed in the year 1937. It is parented by Colgate Palmolive (USA) and It specializes in the production, distribution, and provision of household, health care, personal care, and veterinary products. The stock has been performing well for a long time and is a constant in the Nifty and Sensex indices. The stock is currently trading at ₹1478.
| Stock Symbol | COLPAL |
| Market Cap | ₹ 40,221.24 Cr |
| P/E Ratio | 37.3 |
| Current Share Price | 1,478 |
4. Reliance Industries
One of the largest companies in India, Reliance industries is part of the reliance group founded in the year 1973 by Dhirubhai Ambani. It has diverse businesses including energy, petrochemicals, natural gas, retail, telecommunications, mass media, and textiles. It has many subsidiaries including reliance digital, Reliance petroleum, Jio platforms, etc. The reliance stock is one of the most sought after and bankable stocks in the long-term Indian market. It is currently trading at around ₹2590.
| Stock Symbol | RELIANCE |
| Market Cap | ₹ 17,52,392.45 Cr |
| P/E Ratio | 44.84 |
| Current Share Price | 2,590 |
5. Godrej properties
After DLF, Godrej properties is one of the most sought after real estate stocks, the reason for picking up ear estate stocks for this is the relatively mild volatility of real estate stocks due to inflation. Godrej Properties is a Mumbai based company founded in the year 1990 by Adi Godrej. It is involved in construction and development activities. Godrej properties is currently trading at ₹1184.
| Stock Symbol | GODREJPROP |
| Market Cap | ₹ 32,936.09 Cr |
| P/E Ratio | 62.62 |
| Current Share Price | 1184 |
6. Titan
Titan is an Indian multinational company that manufactures luxury products like jewellery, watches, and fashion accessories. It was founded in the year 1984 by Xerxes Desai. It is headquartered in Bangalore. It is famous for its brands Fastrack, Sonata, Tanishq, and Skinn. They have recently entered the smartwatch market as well.
The stock is currently trading at a price of ₹1936.
| Stock Symbol | TITAN |
| Market Cap | ₹ 1,71,915.35 Cr |
| P/E Ratio | 78.86 |
| Current Share Price | 1,936 |
7. Bajaj Consumer care
Bajaj consumer care is an Indian FMCG company with its major revenue generated from the haircare segment. Bajaj had come up with this FMCG player almost 100 years ago! Their major share lies in hair products but spreads through other products too. With an EPS north of ₹11.7, Bajaj consumer care posts itself as a bankable, safe investment amongst the small-cap funds. It is currently trading at around ₹131 per share.
| Stock Symbol | BAJAJCON |
| Market Cap | ₹ 1,942.37 Cr |
| P/E Ratio | 11.13 |
| Current Share Price | 131.65 |
8. Phoenix Mills Ltd
Phoenix mills is a real estate company incorporated in the year 1905 in Mumbai. They are engaged in mall construction, hotels, and residential properties. Their malls go by the name Phoenix Marketcity They have over 17.5 million square feet of retail residential commercial and hospitality. It is said to be in the Star phase of the BCG matrix, they have been showing good numbers resulting in an increase of mutual fund stake in the company.
It is currently trading at ₹1084.
| Stock Symbol | BAJAJCON |
| Market Cap | ₹ 19,364.98 Cr |
| P/E Ratio | 52.36 |
| Current Share Price | 1,084 |
9. Kalyan Jewellers
Kalyan jewellers is an Indian jewellery company founded in 1993 by TS Kalyanaraman in Thrissur. The company has been trading on the stock exchange since March 2021. It has a Rising Net Cash Flow and Cash from Operating activity. They have a strong financial position and brand equity. It is currently trading at ₹57.40.
| Stock Symbol | KALYANKJIL |
| Market Cap | ₹ 5,912.50 Cr |
| P/E Ratio | 27.61 |
| Current Share Price | 57.40 |
10. ITC
The imperial tobacco company is one of India’s biggest FMCG companies. It was established in 1910. They are interested in personal care, cigarettes, stationery products, and branded apparel amongst many other segments. Increasing revenue of ITC Limited the year by year is its main strength. ITC owns famous cigarette brands like goldflake and classic. The shares are currently trading at ₹263.
| Stock Symbol | ITC |
| Market Cap | ₹ 3,24,471.33 Cr |
| P/E Ratio | 21.55 |
| Current Share Price | 263.30 |
Conclusion
I hope you have liked the way of explanation we have given for inflation stocks in India, now you can take action on your portfolio accordingly
FAQ’s
Which is the most inflated stock in India?
There are no specific stocks where we can point the stock, but I would say there are specific sectors like auto, fashion etc
Is it right to invest in the stock market during high Inflation?
Yes, whenever this type of inflation situation faces, its time to grab this kind of opportunity and stay invested
How long this inflation season will last?
There is no specific term for inflation to end, it depends on the global market. Governments are trying hard to reduce inflation, and yes this inflation won’t be permanent, and its the kind of cycle we need to place, down the line of few years this will end, and after a few years again this inflation issue will occur, so we have to secure our funds smartly.
Is FMCG sector stock good for investing during inflation?
Yes, since FMCG sector fulfils daily human needs, and people won’t stop consuming or using the same, hence the stock price doesn’t fall.
