10 Best Inflation Proof Stocks in India 2022

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.

Source: Zee Business

1. DLF

dlf
Image Source: DLF

Delhi land & finance is a real estate company incorporated in the year 1946 and headquartered in Haryana. DLF is the largest real estate company 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 SymbolDLF
Market Cap₹ 74,754.41 Cr
P/E Ratio55.98
Current Share Price302

2. Lypsa Gems & Jewellery

Lypsa Gems & Jewellery
Image Source: Wikipedia

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 SymbolLYPSAGEMS
Market Cap₹ 24.03 Cr
P/E Ratio343.88
Current Share Price8.15

3. Colgate Palmolive

Colgate palmolive
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 SymbolCOLPAL
Market Cap₹ 40,221.24 Cr
P/E Ratio37.3
Current Share Price1,478

4. Reliance Industries

Reliance Industries
Image Source: Reliance official

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 SymbolRELIANCE
Market Cap₹ 17,52,392.45 Cr
P/E Ratio44.84
Current Share Price2,590

5. Godrej properties

Godrej properties
Image source: Wikipedia

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 SymbolGODREJPROP
Market Cap₹ 32,936.09 Cr
P/E Ratio62.62
Current Share Price1184

6. Titan

Titan Logo
Image Source: 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 SymbolTITAN
Market Cap₹ 1,71,915.35 Cr
P/E Ratio78.86
Current Share Price1,936

7. Bajaj Consumer care

Bajaj-Consumer-care-1
Image Source: Wiki

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 SymbolBAJAJCON
Market Cap₹ 1,942.37 Cr
P/E Ratio11.13
Current Share Price131.65

8. Phoenix Mills Ltd

Phoenix Mills Ltd
Image source: wiki

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 SymbolBAJAJCON
Market Cap₹ 19,364.98 Cr
P/E Ratio52.36
Current Share Price1,084

9. Kalyan Jewellers

kalyan jewellers
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 SymbolKALYANKJIL
Market Cap₹ 5,912.50 Cr
P/E Ratio27.61
Current Share Price57.40

10. ITC

ITC-Limited
Image Source: 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 SymbolITC
Market Cap₹ 3,24,471.33 Cr
P/E Ratio21.55
Current Share Price263.30

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.

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Ajay Krishnann

I'm Ajay Krishnan hailing from Chennai. My journey with the stock market began a few years ago when I turned 18. Ever since I've been interested in the fundamental side of researching equity stocks. Being a CA student my area of interest post qualification would be in and around the stock market. Currently I've completed my CA inter and pursuing my articleship under an auditor. I am also studying for my CPA (USA)

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