Non-Cyclical Business

Commodity Businesses: Low Margin, High Competition(no product differentiation), Labour Problems, High Debt, WC problems

  • Commodity chemicals
  • Packaging, Rubber, Leather, Plastics
  • Textile & Clothing
  • Contract Manufacturing
  • Non specialised services

Speciality Businesses: Great margins, Negative WC, High ROCE, Distribution & Pricing power, Not vulnerable to disruption & economic cycles

  • Personal Care
  • Brands FMCG, FMEG
  • Patents, IP, Trademarks

Cyclical Business

Pure Cyclical Businesses: Low Margin, High Debt, Capital Intensive, WC problems, Depends on Policy

  • Steel and Metals
  • Cements and Construction equipments
  • Infrastructure, Utility, Realty
  • Auto Ancillaries
  • Sugar
  • Capital Goods
  • Engineering Goods

Speciality businesses vulnerable to cycles: Efficient capital allocation, Economic Policy, Smart inventory & WC allocation, Economy in growing phase

  • Passenger Cars
  • Branded wearables
  • Ceramic Tiles
  • Consumer Durables, Electricals
  • Strong Brands(Patents, Innovation, Distribution Moat)

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