Cyclic Stocks – What are they?

In the stock market, there are companies operating in areas that can be called ‘Evergreen’. The areas are as follows:

How to find evergreen stocks to invest: Up to 9,000% return in 10 years!  Time-tested formula throws up evergreen stocks and rising stars
Evergreen Stocks give growth with little downside

What are cyclic stocks?

These stocks belong to companies that have a process of project execution requires capital expenditure(capex) and demand revival for it to show appreciation in its price. This process can exceed 4– 6 quarters (1-1.5 year)

What are cyclical stocks? | Varchev Finance
Areas in which Cyclical Stocks are based

In this process, the company goes through a period of growth with hiring, improvement in efficiency, procurements, new asset buildup for increasing the output and thereby the profit margins

Cyclical Stocks – Evaluating stocks that benefit from economic expansion
Cyclical Stock phases with time

Cyclic stocks in the Indian stock market:

  1. Capital Goods – ABB, Siemens, CGPL, etc.
  2. Metal Space Companies – Tata Steel, Hindalco, NALCO, SAIL, Vedanta, etc.
  3. Cement – UltraTech, Ambuja, JK Laxmi etc.
  4. Real Estate – DLF, Sunteck Realty etc.

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