Table of Contents

Table of Contents

How to conduct a SECTORAL Analysis? (3 quick steps)

This question always comes across one way or the other.
While there is no fixed way of going about it, this is how I analyze and compare sectors.

Finding a sector and analyzing it, is a very tiring job for a beginner.
One gets lost while doing the research.

Here are three (3) simple steps to help you get started-

➢ Identify cyclical and non-cyclical sectors. I
Cyclical sectors are those whose demand changes with the business cycle like automobiles, aviation, restaurants, and non-cyclical are those whose demand will stay forever like FMCG, pharma, etc.

➢ Study government initiatives in these sectors
You can use to check out govt. initiative.

➢ Do Financial Analysis
Every sector has a different style of business and different expenses depending upon nature. You should select either of them like in IT we check attrition rate as a critical parameter.

I personally am very bullish on Banking, Insurance, and Automobiles.

What sectors excite you? Let’s discuss this in the comment box.

Yours Truly


Our blogs are made for educational purposes only, and we do not provide investment recommendations. We are not SEBI-registered advisors and do not accept cryptocurrency payments. We present publicly available facts and data, not favoring any company.

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