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Cyclical stocks are companies whose performance moves with the economic cycle. When the economy is growing, these stocks usually do well, and when growth slows, they can struggle. Many traders are again looking at sectors like capital goods, metals, chemicals, IT services, pharma, and consumer businesses.
Let’s take a look at the top cyclical stocks that offer major profits and dividends to investors.
Data Patterns (India) Ltd operates in the aerospace and defense equipment industry. The stock trades at a market price of Rs. 2,578.50, close to its 52-week low of Rs. 1,351.15, compared to a high of Rs. 3,268.80. With a market cap of Rs. 14,435.47 crores, it has a high PE ratio of 65.08 versus industry PE of 40.41. ROE is healthy at 15.66%. Returns are strong over the long term, with 241.52% over 5 years. Defense spending is cyclical, and this company can benefit when government capex rises again.
Indus Towers Ltd is a telecom infrastructure player. At a market price of Rs. 438.40 and a market cap of Rs. 115,612.00 crores, it trades at a PE of 11.64. ROE is strong at 33.36%. With three-year returns of 140.88%, it shows how infra cycles can reward patient investors.
NMDC Ltd is a classic cyclical stock linked to iron ore prices. Its market price is Rs. 83.85 with a PE of 11.29, much lower than the industry PE of 29.85. Market cap stands at Rs. 73,719.39 crores. Dividend yield is attractive at 3.94%. Strong five-year returns of 184.24% show how commodity cycles can boost profits sharply.
ITC Ltd may look defensive, but FMCG demand also moves with income cycles. ITC trades at Rs. 334.75, near its 52-week low of Rs. 333.45. With a massive market cap of Rs. 419,406.93 crores, PE is just 12.07. The dividend yield is high at 4.28%. Even with -23.33% one-year returns, long-term investors still saw 65.24% over 5 years.
Vedant Fashions Ltd (Manyavar) is more directly linked to consumer spending cycles. Market price is Rs. 540.15, far below its 52-week high of 1,220.95. PE is 33.79, and ROE is solid at 22.93%. However, returns have been negative over the years, showing how the consumption slowdown hits fashion brands fast.
Also Read: 10 Highest Dividend Stocks in India You Can’t Miss in 2026
Computer Age Management Services Ltd (CAMS) benefits when mutual fund inflows rise. Market price is Rs. 721.15 with a PE of 38.02. ROE is very strong at 46.22%. While one-year returns are negative at -14.55%, three-year returns are 57.29%, proving cycles in financial savings.
Indian Energy Exchange Ltd is linked to power demand and energy cycles. Market price is Rs. 139.37, PE 28.88, and ROE is a high 40.71%. Even with weak short-term returns, long-term power demand cycles can support growth.
Latent View Analytics Ltd trades at Rs. 429.80 with a PE of 51.06. ROE is lower at 11.97%. Returns are mixed, showing how IT spending cycles can slow when global demand weakens.
Info Edge (India) Ltd depends on hiring and real estate cycles. Market price is Rs. 1,305.80, PE is high at 87.87. Despite strong three-year returns of 73.64%, one-year returns are negative, reflecting a slowdown in tech hiring.
Indiamart Intermesh Ltd is another cyclical digital business. Market price is Rs. 2,114.50 with a PE of 23.07. ROE stands at 28.09%, but returns are weak over the last 3 and 5 years, showing pressure during down cycles.
Pharma and chemicals also show strong cycles due to regulation, exports, and pricing.
Divi's Laboratories Ltd trades at Rs. 6,355.50 with PE of 77.01. ROE is 15.35%. Long-term returns remain strong at 70.63% over 5 years.
Caplin Point Laboratories Ltd has a PE of 26.29 and an ROE of 20.50%. With 277.10% five-year returns, it shows how pharma cycles can reward consistency.
Navin Fluorine International Ltd trades at Rs. 6,032.00 with a high PE of 107.11. ROE is lower at 11.52%, but five-year returns of 133.94% show strength during chemical upcycles.
Sun TV Network Ltd depends on ad spending cycles. Market price is Rs. 553.50 with a PE of 12.81. Dividend yield is decent at 2.71%. Returns are modest, but stable cash flows help during recovery phases.
Also Read: Top Stocks Under Rs. 100 for 2026: Affordable Investment Picks
Cyclical stocks can be risky but also very rewarding if bought at the right time. Many of these companies are trading closer to their 52-week lows, which may offer an opportunity if economic growth improves. Investors should always balance valuation, ROE, and long-term return history and not panic during short-term weakness.
1. What are cyclical stocks?
Cyclical stocks are companies whose performance depends on economic conditions like growth, demand, and spending.
2. Are cyclical stocks risky for small investors?
Yes, they can be volatile in the short term, but risk reduces if you invest for a long time.
3. Why are Data Patterns considered cyclical?
Its revenue depends on government defense spending, which moves in cycles.
4. Is ITC really a cyclical stock?
ITC is partly cyclical because FMCG demand and tobacco volumes rise with income growth.
5. How does Info Edge benefit from economic recovery?
Info Edge earns more when hiring and real estate activity increases during growth phases.
