Safe investing often means managing risk through diversification, proper entry points, and a margin of safety rather than an absolute guarantee of no loss.
As the Sensex and the Nifty hit new peaks, it’s best to look at stocks that can potentially offer protection during downturns.
These stocks usually have a dominant position in their industry or are virtual monopolies. Here are four such companies, with strong dominance in their industry.
Investors should note that this is neither a fundamental analysis nor a recommendation on these stocks.
Indian Railway Catering and Tourism Corporation Ltd
IRCTC is a public sector undertaking under the Ministry of Railways, Government of India. It serves as the professional hospitality, ticketing, and travel arm of Indian Railways.
It manages catering services on trains and at stations, provides online railway ticketing, and promotes domestic and international tourism through tour packages and budget hotels. It’s responsible for rail-bound tourism in India.
The company also sells bottled water under the Rail Neer brand.
On the financial front, the company reported Q2FY26 revenue of ₹1,146.0 crore, against ₹1,064.0 crore year-on-year. The net profit of IRCTC was ₹342.0 crore vs ₹307.9 crore on-year.
The Q2FY26 growth was primarily driven by the robust performance in the internet ticketing, catering and tourism segment, supported by operational efficiency and disciplined cost management.
Moving ahead, IRCTC is taking moves to grow beyond ticketing. The first initiative it’s taking in this regard is its payment aggregator business.
The company received in-principle approval from the RBI on 4 August 2025 and has been given six months to submit its proposal application for acquiring a license.
The company’s other major plan is a unified travel portal. The company aspires to cross-sell travel-related products to its existing customers and to additional customers.
IRCTC now intends to enhance its UI/UX, utilizing AI/ML and agentic AI to facilitate a seamless travel experience for passengers.
For the Rail Neer business, IRCTC is in the process of enhancing the capacity of its Danapur and Ambernath plants from 0.1 million bottles to 0.3 million bottles and has plans to install four more plants.
On the tourism front, IRCTC has started taking up MICE events. Recently, the company had arranged the same for Indo-ASEAN countries Mart, where IRCTC in Bangkok for the first time organized a Mart infrastructure. The company intends to expand the same going forward.
In short, the company’s strategy is to strengthen its digital ecosystem, expand new offerings, enhance operational efficiency across business verticals, leverage technology for a better customer experience and scalability, and explore emerging opportunities in tourism, hospitality, and value-added services.
Multi Commodity Exchange Of India Ltd
MCX, or the Multi Commodity Exchange of India, stands as the leading commodity derivatives exchange in the country, holding a dominant 98.8% share of the commodity futures market.
It facilitates trading across a wide array of commodities, covering categories such as bullion, energy, metals, agricultural products, and even sectoral commodity indices.
The reason we categorise this stock as safe is on account of its virtual monopoly.
On the financial front, MCX had a good quarter. The company saw Q2FY26 revenue from operations growing to ₹374.23 crore, a solid growth of 31% over the previous year.
Profit after tax at ₹197.4 crore, surged 29% on-year. The average daily turnover of futures and options increased by 87% on-year at ₹411,270 crore from ₹220,240 crore.
The bullion segment increased its share in average daily turnover from 44% to 57%, supported by the launch of new variants viz Gold Mini, Gold Ten Futures.
Following the positive response received on the monthly gold options contracts, MCX also launched, in coordination with the industry, the silver (30 kg) and silver mini (5 kg) monthly expiry contracts.
Looking ahead, the company is poised for growth as it continues to secure new contracts and expand its operations. MCX recently introduced the Cardamom Futures Contract, effective from July 2025.
Additionally, MCX launched monthly options contracts on the MCX iCOMDEX Bullion Index (MCX BULLDEX), which include both gold and silver, starting from October 2025.
MCX is well-positioned to capitalize on increasing commodity trading volumes, the rollout of innovative products, and ongoing advancements in technology.
Developments like blockchain integration, AI-driven trading platforms, and improved risk management tools are key factors enhancing the company’s growth trajectory.
By establishing indigenous benchmarks for commodity pricing, broadening options trading to encompass a wider variety of commodities, and upgrading its trading platform technology, MCX is reinforcing its competitive position in the market.
As India’s role in global commodity markets grows, these innovations in trading infrastructure and product diversification are set to drive sustained long-term opportunities for the company.
Coal India Ltd
Coal India is the largest government-owned coal producer in the world.
It operates as a public sector undertaking under the Ministry of Coal, Government of India, and accounts for around 80-85% of India’s total coal production.
On the financial front, the company saw revenues in Q2FY26 dropping to ₹30,186.7 crore vs ₹31,181.9 crore on-year. The net profits of Coal India plunged to ₹4,053.4 crore from ₹6,137.7 crore on-year.
Moving ahead, India’s clean energy transition has accelerated, with 50% non-fossil capacity achieved five years ahead of target, driven by strong policy support and decentralized generation.
This shift raises concerns over long-term coal demand visibility, as renewables, storage, and smart grids reshape the power sector.
To counter this, Coal India has long-term fuel supply agreements in place, covering 629 m tonnes per year for the power sector. These contracts provide the company with a consistent offtake from power utilities and enable long-range planning for production and logistics.
Coal India’s roadmap targets 1.23 billion tonnes by FY35, with an 8% annual growth forecast from FY25. The company has secured priority access to railway infrastructure and are expediting project clearances for FMC implementation.
The diversification into coal gas, coal bed methane (CBM), and renewable energy aligns with emerging policy incentives and opens up new revenue avenues for Coal India.
Computer Age Management Services Ltd (CAMS)
This is another company whose stock could be considered safe, given its strong position as registrar and transfer agent.
With more than 30 years of experience and domain expertise, CAMS is India’s foremost Qualified Registrar and Transfer Agent (QRTA) for mutual funds.
The company serves ten out of the fifteen largest mutual funds by Average Assets Under Management (AAUM), including the top four.
CAMS provides technology-driven financial infrastructure and services, catering to mutual funds, alternative investment funds (AIFs), insurance companies, and others.
On the financial front, CAMS reported revenues in Q2FY26 improving marginally to ₹376.7 crore from ₹365.2 crore on-year. The net profit fell to ₹114.0 crore from ₹120.8 crore on-year.
Moving ahead, the company has announced plans to capitalize on the growth of the mutual fund industry by enhancing its operational infrastructure, expanding its talent pool, and strengthening its technological foundation.
CAMS revealed its efforts to future-proof its platform by incorporating AI and other advanced technologies, ensuring it can support the industry’s sustained growth in the years ahead.
The platform is being prepared to accommodate up to eight new asset management companies (AMCs) annually and assist several emerging fund houses in launching operations, aligned with recently issued licenses.
Additionally, CAMS is strategically positioning itself to support clients in introducing SIF schemes in the coming months—an emerging asset class that is gaining notable market interest.
As part of its platform redevelopment, CAMS announced the launch of CAMSLens and intends to implement four more AI integrations within the next two quarters. These advancements aim to enhance scalability and significantly improve operational efficiency.
Should you consider safe stocks?
Safe stocks potentially offer stability through strong financials, low debt, and consistent dividends.
These stocks typically exhibit lower volatility during market downturns due to their market leadership and diversified revenue streams. They also provide reliable income via dividends.
However, at times, even safe stocks, carry inherent risks including market volatility, regulatory changes, and economic uncertainty that can affect stability.
Investors should evaluate the company’s fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.
Happy Investing.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated from Equitymaster.com.
