The only sugarcoating I will give is no fluff, no sugarcoating for real. If you’re looking for business opportunities that will generate huge profit regardless of circumstances, this is your deep dive into the businesses that see demand every day, where profit margins are huge and there’s new competition either not yet even born, or long gone. For that, I am going to give you the large caps (safe bets), the mid cap (high growth) and small cap/ penny stocks (high risk, high reward) to choose from where you want to bet your money.
1. Alcohol & Liquor – The Forever Cash Machine
Sadness, happiness, Saturday, there was a reason for everything to drink. There’s no stopping this industry. The profit margins are certainly crazy high, because you cannot deny—it’s just water, grain—and a label. Brands add a cool name to it and people pay 10x the cost price. The sector is protected by government regulations and it’s hard to get into as a result, with that being a bad thing for existing giants who continue to mint cash. Apart from that, premium alcohol sales in India are déjà ta bon, so people are moving from cheap country liquor to expensive whiskey, craft beer and wine. You are convinced people would quit drinking because of inflation? Never. If anything, they drink more.
Large Caps:
- United Spirits – (McDowell’s, Signature, Royal Challenge)
- United Breweries – (Kingfisher, Heineken India)
- Radico Khaitan – (Magic Moments Vodka, Rampur Whisky)
Mid Caps:
- Globus Spirits – (Mass & Premium IMFL Liquor, Country Liquor)
- Tilaknagar Industries – (Mansion House, growing strong in brandy)
- GM Breweries – (Strong in local Maharashtra liquor market)
Small Caps & Penny Stocks:
- Som Distilleries – (Beer & whiskey, growing fast)
- IFB Agro – (Small player in liquor & agro-processing)
- Jagatjit Industries – (Aristocrat Whiskey, lost ground but dirt cheap stock)
2. Cigarettes & Tobacco – Addiction = Money Printer
No one gives up on smoking because the economic situation is bad. Addicts will beg, borrow or steal to buy cigarettes. Here what happens is that the government is submitting increasing taxes. Addicts buy, cigarette companies just raise prices. This is one of the most predictable, highest margin business in India. Why? Because competition is dead. In other words, the cigarette industry is nothing but a monopoly. Advertising is banned, so that small brands could not even enter, it’s a closed shop where the big eyes continue to grow fat. Profit margins are the highest of the highest in FMCG, and it’s literally burning money, inhaling profits.
Large Caps:
- ITC – (Absolute king in cigarettes, Gold Flake, Classic, Navy Cut)
Mid Caps:
- Godfrey Phillips – (Marlboro India, Four Square, Red & White)
Small Caps & Penny Stocks:
- VST Industries – (Charms, Total, profitable & consistent)
- Golden Tobacco – (Tiny player, dead stock but still listed)
3. Condoms, Contraceptives & Sexual Health – No Recession Here
There WILL NEVER be a time when people stop having sex. That’s a fact. So, no matter what the economy is doing, demand for condoms, lubricants and birth control pills will never evaporate. The best part? It is one of highest margin products in FMCG category. Brands, though, charge a premium because of ‘pleasure enhancing’ marketing gimmicks, while the manufacturing cost is dirt cheap. This is a brand driven, high loyalty business where people don’t even cheque the price before buying condoms they pick what they trust. The biggest growth area? Rural India. However, long term unstoppable growth exists due to government awareness campaigns and increasing education that goes hand in hand with growing condom sales in small towns.
Large Caps:
- HLL Lifecare – (Government-backed, makes Nirodh, I-pill)
Mid Caps:
- Mankind Pharma – (Manforce, PregaNews, top-selling condom brand)
Small Caps & Penny Stocks:
- Cupid Ltd – (Male & Female condoms, export leader)
4. Sanitary Pads & Feminine Hygiene – A Monthly Subscription Business
No woman will not skip buying sanitary pads even when there is no money. This is aesisential product and not negotiable. This HAS to be bought every single month, regardless of state. Unlike fashion or makeup, it’s something that women cannot skip in bad times. And guess what? The pieces are mostly controlled by a few major brands. These are insane premiums, and women rarely change brands after they trust a product. The real money? Rural India. Market is EXPLODING because it is replacing cloth, millions of women are switching from cloth to sanitary pads. It is a boring industry, and if you think that, you’ve blindfolded yourself to the money being printed here.
Large Caps:
- Procter & Gamble (P&G Hygiene) – (Whisper, dominates premium category)
Mid Caps:
- Kimberly Clark – (Kotex, expanding rapidly)
Small Caps & Penny Stocks:
- Nureca Ltd – (Health & hygiene-focused, fast-growing small-cap)
5. Baby Products – Parents Will Spend No Matter What
Newborns are not cognizant of a recession, they need diapers, baby food, and medicines every day. First of all, parents will rationalise cutting their own expenses instead of cutting spending on their baby. It’s why this is absolutely one of the safest, most recession-proof industries ever. Thus, demand for baby products only increases as more urban parents turn to the premium brands—organic baby food, premium diapers and premium baby skin care. Margins are fat and once parents trust a brand, they will never switch as nobody experiments on a baby’s health. Revenue stream similar to subscription, price elasticity up very low, forever growing. This is a money-printing business.
Large Caps:
- Nestlé India – (Cerelac, Lactogen, NAN Pro)
- Hindustan Unilever (HUL) – (Pears Baby Soap, Johnson & Johnson licensing)
Mid Caps:
- Britannia – (Entering baby food market, strong brand power)
- Hatsun Agro – (Milk & dairy, strong presence in South India)
Small Caps & Penny Stocks:
- Nureca Ltd – (Owns baby healthcare brands, emerging player)
6. Pharma & Medicines – No One Skips Medicine
Keeping a phone is easy to skip, a holiday or a meal out can be left for later, but when you are ill you can’t avoid medicine. This is the last recession proof business. Simply put, people NEED medicines, hospitals NEED supplies, and the government NEEDS pharma companies, to produce cheap generics, particularly during emergencies such as this (on top of a continued suppression of the economy). The business never slows down, margins are fat. These days people are chronic diseases are rising, so people are living their lives on daily medicines like blood pressure, diabetes, heart problems. In addition to that, India is also one of the world’s largest exporters of generic drugs; that is — Pharma companies make money both locally and globally. This is an industry that will never die if you want one.
Large Caps:
- Sun Pharma – (Biggest pharma company in India, generics giant)
- Dr. Reddy’s – (Strong in global generics, US exports)
- Cipla – (Leader in respiratory medicines, huge growth)
Mid Caps:
- Lupin – (Undervalued right now, but strong future growth)
- Aurobindo Pharma – (Huge in generics, expanding in US)
- Glenmark Pharma – (Specialty drugs, dermatology leader)
Small Caps & Penny Stocks:
- Marksans Pharma – (Cheap small-cap, strong in exports)
- Kopran Ltd – (Old pharma player making a comeback)
- Lincoln Pharma – (Fast-growing small-cap, exports to Africa)
7. Instant Noodles, Biscuits & Junk Food – Comfort Food Always Sells
People who don’t know what to eat eat instant noodles if they are broke. If person are rich, they take premium biscuits and chocolates. See the pattern? This industry is to thrive in every single situation. Nobody stops eating junk food, simply because there is inflation. Junk food is a stress reliever. Biscuits, Maggi and chocolates are cheap happiness, which is why they always sell, no matter what. There were record profits from these brands even during the COVID lock downs. The best part? Companies make 50%+ profit margin on every packet. It basically is just selling flavoured flour and sugar at a premium.
Large Caps:
- Nestlé India – (Maggi, Munch, KitKat, MilkyBar)
- Britannia – (Good Day, Bourbon, Little Debbie)
- ITC – (Bingo, Sunfeast, aggressive in FMCG)
Mid Caps:
- Tata Consumer – (Entering snack foods, growing rapidly)
- Dabur – (Real juices, also entering snack category)
Small Caps & Penny Stocks:
- DFM Foods – (Crax, Rings, small player but good brand recall)
- Prataap Snacks – (Yellow Diamond, competing with Bingo)
8. Edible Oil & Dairy – People Cook & Drink Milk Daily
No one can prevent buying cooking oil or milk. Even if these products become as expensive as they can be, people will still buy them, they are necessary. These businesses can print money because they hold the card on pricing. They just raise prices if input costs go up and customer has little choice but to pay for it. Right now, India’s population growth dictates that such demand always won’t drop. This is one of the safest, most highest volume FMCG industries and with rising disposable income, people now prefer to shift to the premium dairy brands. Cash flow continues to be a never ending cycle.
Large Caps:
- Marico – (Saffola, Parachute, growing premium category)
- HUL – (Annapurna ghee, premium dairy entry)
Mid Caps:
- Hatsun Agro – (Dairy giant in South India)
- Heritage Foods – (Owned by Chandrababu Naidu’s family, strong in Andhra & Telangana)
Small Caps & Penny Stocks:
- Anik Industries – (Dairy & food processing, slow-moving but steady)
9. Banking & Digital Payments – You Can’t Escape Banks
Banks own your money. That is, they have control over loans, savings, and transactions. If you don’t directly hand them money, it still makes them money as they take UPI, debit card and credit card swipe every time. An industry that’s highly profitable, essential and consumers are made use of daily. Banks collect money off you. There are a hundred ways to steal money away from you when it comes to: Loans, Credit cards, Insurance, Fees, etc. While fintech players are knocking down market share as digital banking explodes, traditional banks aren’t going any time soon. You can not escape them, this is an industry you owe to the financial backbone of your country.
Large Caps:
- HDFC Bank – (Most valuable private bank)
- ICICI Bank – (Fastest growing large private bank)
- SBI – (Public bank giant, but steady performer)
Mid Caps:
- Kotak Mahindra Bank – (Premium banking, strong wealth management)
- IndusInd Bank – (Recovering from past issues, strong digital presence)
Small Caps & Penny Stocks:
- RBL Bank – (High risk, but could recover strong)
- Ujjivan Small Finance Bank – (Huge microfinance potential)
- AU Small Finance Bank – (Expanding fast, but high valuations)
10. Funeral Services & Cremation – The Dark Horse Investment
It is guaranteed that people don’t want to talk about it, but death is. This is one of a very few industries with a permanent growing demand. As the Indian cities get modernised, cremation services, funeral management and electric cremation are growing. Funerals are recession-proof and cash-rich — people will spend BIG on cremation, rituals, and funeral merchandise. The best “silent” business and smart investors are taking advantage of this. Neither this industry nor death is stopping.
Large Caps:
- None (Yet, but IPOs in cremation services coming soon)
Mid Caps:
- None (Yet, but watch electric cremation tech companies)
Small Caps & Penny Stocks:
- Shakti Pumps – (Makes electric crematorium furnaces)
- Gayatri Projects – (Works on crematorium infrastructure projects)
Final Take: Where’s The Smart Money?
- If you want to concentrate on consistent, no worry money, just go for Liquor, Tobacco, FMCG & Pharma.
- To have high growth type of businesses, you have to bet on Sexual Wellness, Baby, Junk Food, and Banking.
- Picking small caps in Alcohol, snacks, and digital banking or digital banking will give you insane upside with some risk.
💰 These businesses print cash non-stop. Want to get rich? Get in before the big money does.
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