In the stock market, there are companies operating in areas that can be called ‘Evergreen’. The areas are as follows:
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)
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
Cyclic stocks in the Indian stock market:
- Capital Goods – ABB, Siemens, CGPL, etc.
- Metal Space Companies – Tata Steel, Hindalco, NALCO, SAIL, Vedanta, etc.
- Cement – UltraTech, Ambuja, JK Laxmi etc.
- Real Estate – DLF, Sunteck Realty etc.
Lateral Thinking 
How to determine which cyclics are expected to get a boost in coming months?
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This is based on three factors: Price of the stock from their 200DMA, Estimated Stage of their Capex that was laid out, Demand for the Product. For example, you can see that Copper Capex is going on and at the same time owing to high demand for EV, Wind, Solar installation – prices are almost at an all time high.
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