The weakening rupee will benefit a host of small and mid-sized companies that largely earn through exporting their goods and services.

A study by ET Intelligence Group shows that companies that are not usually in the Street radar and are not from the obvious sectors such as IT, pharmaceuticals and gems & jewellery – that are usually expected to gain from depreciating rupee – could make robust gains from the sliding currency.

These sectors include food processing, garments, hospitality, marine vessels, minerals, auto ancillaries, coffee and chemicals.

For instance, Rajasthan-based Vikas WSP is a leading exporter of guar gum powder, supplying to varied sectors such as oil drilling and fracturing, food processing, textile printing and paper-making. It earns 95% of its revenues in foreign currency. Kerala-based AVT Natural Products manufactures and exports marigold oleoresins, spice oleoresins, essential oils and value-added teas.

Ethnic Indian packaged food maker ADF Foods earns over 95% of its revenues from overseas markets like Middle East, the US, Europe and Australia. Guntur-based CCL Products is an established player in the international markets in spray-dried instant coffee segment.

Kerala-based Cochin Minerals & Rutiles is a 100% export oriented unit (EOU) producing synthetic rutile, ferric and ferrous chlorides and iron hydroxide from naturally found mineral deposits on Kerala’s beaches.

Mumbai-based Global Offshore is in the business of chartering out its fleet of 11 offshore vessels to the petroleum exploration industry. In line with the global practice, charter rates for the vessels are denominated in US dollars leading to significant gains for it from a weaker rupee.

“Even co mpanies producing import substitutes would be gaining substantially from the current rupee decline,” says G Chokkalingam, executive director & chief investment officer, Centrum Wealth Management. For instance, companies manufacturing caustic soda.

According to him, among exporters, the benefit will accrue more so to companies in businesses dependent on natural resources rather than ones dependent on labour-cost arbitrage, like IT or pharmaceuticals – since importers will bargain more in the latter case knowing well that the currency has depreciated.

“However, the exporters are only going to benefit if they are not hedged. They will rather incur mark-to-market losses to the extent of their hedging at levels lower than the current rupee levels,” says Jagannadham Thunuguntla, strategist & head of research, SMC Global Securities.