Reasons for the selection if stocks for trading

1) Man Industries Sector: Steel Tubes/ Pipes India is currently the 5th largest steel producing nation in the world with production of over 53 million tone Steel production has grown at a compounded rate of 9%. The Indian steel sector has key advantages of domestic availability of raw material and cheap labor. The basic import duty on steel has been consistently brought down and is nil currently while the government has levied export duty on steel products. Steel is most common material and is used in infrastructure, housing, automobiles & consumer durables. The major products are semi finished product, ordinary steel products likes tube, pipes SWOT Analysis: Strength: Availability of iron ore and coke, Low wage labour; Weakness: High cost of capital, Cyclical in nature, Low productivity, Inadequate infrastructure; Opportunity: Govt. Subsidy given to auto Industry, Infrastructure demand; Reduction in price of key raw materials and fuel; Threat: Steel prices coming down; Threat of substitute (Aluminum); Dumping from China; Slowdown of economy. 1. 2. 3. 4. 5. 6. 7. 8. Advantages (5year data difference in crores, b/w 1st and last) Increasing reserves (339.55-617.29) Increasing net worth (366.19-644.93) Decreasing debt (309-230) Increased investment (33.38-302.96) High PBT (108.66-154.66) EPS (13.36-18.45) Net profit (71.21-102) P/E (7.01) News that enforced to pick the stock The company posted highest ever profit in 2011-12 in its 25 years history. We are expecting further growth in the current financial year. Our current order book stands at Rs 1,200 crore which is to be executed within the next 78 months, said Mr. R C Mansukhani Chairman, MAN Industries

2) Lumax Auto Technologies Sector: Auto ancillaries Auto Industry is classified into 2-wheelers, 3-wheelers & 4-wheelers segment. It can be further classified as passenger, utility & commercial vehicles. Hero Honda & Bajaj Auto is dominant players in the two-wheelers space. Maruti Suzuki, Tata Motors, Mahindra & Mahindra, Ashok Leyland rule the four wheelers space. An original equipment manufacturer, or OEM, manufactures products or components which are purchased by a second company and retailed under the second company's brand name. Advantages (5year data difference in crores, b/w 1st and last) 1. Increasing reserves (26.74-71.24) 2. Increasing net worth (38.37-84.87) 3. Decreasing debt (15.31-0.81) 4. Increased investment (2.67-25.55) 5. High PBT (3.80-34.11) 6. EPS (2.38-17.19) 7. Net profit (2.33-23.44) 8. P/E (8.96) News that enforced to pick the stock Lumax auto technologies to bag orders from Honda motorcycle and scooters Lumax auto plans to set up 80cr plant Experts claim a rise in lumax to RS:200 3) Axis bank Sector: Banks Private sector Reserve Bank of India (RBI) is the central banking and monetary authority in India. RBI manages the countrys money supply and foreign exchange and also serves as a bank for the Government of India and for the countrys commercial banks. Banks can be broadly

categorized into commercial banks, public sector banks, regional rural banks, private sector banks, foreign banks, co-operative banks, and term lending institutions, non-banking finance companies / housing finance companies. Public sector banks make up the largest category of banks in the Indian banking system. There are 28 public sector banks in India. After bank nationalization was completed in 1969 and 1980, the majority of Indian banks were public sector banks. In July 1993, as part of the banking reform process and as a measure to induce competition in the banking sector, RBI permitted entry by the private sector into the banking system. This resulted in the introduction of nine private sector banks. The Government of India permits foreign banks to operate through branches; a wholly owned subsidiary; or a subsidiary with aggregate foreign investment of up to 74% in a private bank. Advantages (5year data difference in crores, b/w 1st and last) 1. 2. 3. 4. 5. 6. 7. 8. Increasing reserves (8410.79-22395.34) Increasing net worth (8770.69-22808.54) Increased investment (33705.10-93192.09) Net profit (1071.03-4242.21) EPS (29.94-109.61) Dividend (251-770) P/E (12.46) Increase in the asset value

News enforced to pick the stock HDFC Bank and Axis Bank are safe bets in banking space, says Atul Badkar of Edelweiss Securities The Reserve Bank of India on Tuesday left the key policy rate unchanged in its mid quarter (December 2012) monetary policy Vishal Goyal executive director, UBS Securities to CNBC-TV18 that banks will perform well in 2013

 The countrys third largest private sector lender, plans to take the share of retail credit in its overall loan book from the current 24 per cent to 30 per cent in the next 2-3 years. on the banks expansion plans in Odisha, Bammi the bank had firmed up plans to open 12 new branches in the state in the current fiscal. Five of these branches would be set up in un-banked locations while the balance seven would come up in rural areas 4) Bharath Petroleum Corporation Sector: Refineries Oil is the single most important commodity that holds the position of a key factor in each and every economy of the world. India is one of the largest consumers of oil in the world. US tops the list of largest consumer of oil. Indias demand for oil is expected to grow at an annual growth rate of 3.6% whereas domestic production is expected to grow at approximately 2.5%. Oil sector is mainly classified into exploration, refining & marketing segments. 1 bbl = 153 litre. New Exploration Licensing Policy (NELP) was launched by the Government for accelerating the pace of hydrocarbon exploration in the country. Oil blocks are awarded under this policy. HPCL, BPCL, IOC are the oil marketing companies eligible for oil subsidy provided by the government. Advantages (5year data difference in crores, b/w 1st and last) 1. 2. 3. 4. 5. 6. Reserves (11,315.30- 14,552.32) Net worth (11,676.84- 14,913.86) Investments (9,358.01- 10,917.42) Net Current Assets ( 4,605.83- 7,511.44) EPS-45.64 P/E-7.74

News enforced to pick the stock

 Recent news related to the hike in the diesel price has put in a good trend to the oil marketing companies The huge natural gas discovery in a Mozambique block where Bharat Petroleum Corp Ltd (BPCL) and Videocon Industries are partners, will be turned into LNG plant to be jointly Bharat Petroleum Corporation Ltd has informed BSE regarding a Communication titled "New Oil discovery in the deep water of SergipeAlagoas Basin BPCL is undertaking a major expansion of its Kochi Refinery at a cost of over Rs 14,000 crore. Along with this, the corporation is also setting up a Rs 4,500-crore petrochemical complex 5) Tata steel Sector: Steel- Large Advantages (5year data difference in crores, b/w 1st and last) 1. Reserves- (21,097.43- 51,245.05) 2. Net worth-( 27,300.73- 52,216.46) 3. Investments- (4,103.19- 50,282.52) 4. Total Assets- (45,322.42- 75,910) 5. Net Profit- (4,687.03- 6,696.42) 6. Earnings Per Share-( 63.85- 68.95) 7. P/E-7.31 News enforced to pick the stock Tata Steel on Thursday said the total demand for steel in the current fiscal is likely to grow by 5.5 percent to around 75 million tonnes After the tenure of Ratan Tata there is so called a positive impacts on all stocks of Tata group The oil and gas company Artson Engineering Limited has bagged a construction order from Tata Steel Growth Shop, a branch of Tata Steel Limited. The value of this order is about Rs 20.65 crore. According to

Artson Engineering, the company will fabricate structurals at Gamharia unit In the financial year 2012-13, growth in domestic steel demand is expected be around five-and-a-half per cent. In 2013-14, steel demand in India is expected to be higher at around seven per cent, says H.M. Nerurkar, Managing Director, Tata Steel.