The most useful way to recognise whether a company is cyclical or non-cyclical is to see its profit margins, more often gross profit margins. If these margins deviate a lot and sometimes go up, sometimes down, and its not increasing or stable that means , more or less the company is cyclical.
You are asking the question about a whole sector, whether its cyclical or not. But more practically, its better to focus on a particular company, whether its cyclical or not…because even at company level too, things are quite complicated and there are no straight , easy answers. Just to give one example, just was reading Annual Report of Balkrishna Industries, there in management discussions they have clearly stated, their off-highway tires find applications in agricultural, industrial, mining etc industries and out of these, only agriculture is non-cyclical area, wheras industrial, mining, earth movers they are all cyclical industries. So what i can deduce is, Balkrishna industries, on a company level, is a combination of non-cyclic as well as cyclic where some segments are non-cyclic and some are cyclic. Business world, just like life, is never black and white…its always grey.
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