This is the second part of the two-part article on the relevance of fundamental analysis in stock selection - the first part appeared in the January issue of the Portfolio Organizer. Covering five industries - automobile, pharma, IT/ITES, cement and banking , the article attempts to help the reader to analyze a company's fundamental strength based on its financical statements.

Indian automobile industry is growing at a great speed. It is expected that it will have a cumulative growth of 9.5% till 2010. National and international industry giants are all geared up to reap the benefit of this growth. The growth has surprisingly not been tampered by the rising fuel price and several inflation-related factors in its spare parts segment.

The Economic Survey has pointed out 15% steady annual growth rate for the sector making it a joyous sector to invest. The vehicle sales in India went up by 20% in 2006. It is believed that the auto-industry is a major force in driving the Indian economy. Facts from the Industry The auto industry registered a growth of 20% in 2006 as against 13% in 2005. The total vehicle production, including tractors went upto 9,735, 216 during the period. The passenger vehicles surpassed a growth of 8% whereas the medium and heavy commercial vehicles registerd a growth of 4.5%. The light commercial vehicles had a growth of 19% and the two-wheeler segment grew by 17%.

This painted a very happy picture for the industry. Thrust on Export The growth-oriented domestic automobile industry is bound to attract a massive investment. This is believed to be to the tune of $18 bn. However, its export potential still remains untapped despite having global recognition, as per the Economic Survey.

Portfolio Organizer Magazine, fundamental analysis, Indian Automobile Industry, Indian pharma industry, Inforamatioal Technology, Cement Industries, Banking Industries, Indian Economy, Economic Survey, Gross Domestic Products, GDP, Transport system, Mergers and Aquisition, M&A, Financial Systems.