\nInformation Technology<\/span><\/td>\n | 1594493<\/span><\/td>\n<\/tr>\n\nFinance<\/span><\/td>\n | 1481891<\/span><\/td>\n<\/tr>\n\nAuto<\/span><\/td>\n | 632937<\/span><\/td>\n<\/tr>\n\nAuto Ancillary<\/span><\/td>\n | 234800<\/span><\/td>\n<\/tr>\n\nEngineering\u00a0<\/span><\/td>\n | 343081<\/span><\/td>\n<\/tr>\n\nPaints & Pigments<\/span><\/td>\n | 206434<\/span><\/td>\n<\/tr>\n\nConsumer Durables<\/span><\/td>\n | 141617<\/span><\/td>\n<\/tr>\n\nFood Processing<\/span><\/td>\n | 225832<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n After making an analysis of sectors, you need to analyse<\/g> the companies operating in the industry and choose two stocks of each sector for diversification of your stock portfolio. You need to analyse<\/g> the following factors.<\/span><\/p>\nDebt: Net Worth ratio<\/strong><\/span><\/h6>\nIf the company has marginal or low debt or it is a debt-free company, the company is worth investing. If the company has marginal or low debt or is a debt-free company, the company is worth investing. Let us illustrate what is the difference between a high debt company and a debt-free company. When a company has huge debt from the market or bank or commercial institutions, then the company will concentrate on the debt and its effort will be to pay off the debt. It cannot be sincere about the service, quality of the product or any other important aspects needed for the business. If the company is debt free, the\u00a0company will concentrate on product quality, service and customer satisfaction only. That is why a debt-free company is better than a high debt company.<\/span><\/p>\nCompounded sales Growth<\/strong><\/span><\/h6>\nSelect a company that has been generating sales Growth annually during the last 5 financial years of at least 10%. When a company\u2019s sales increases, then naturally the company will make more profit. So this will affect its share price.<\/span><\/p>\nProfit after Tax (PAT) growth<\/strong><\/span><\/h6>\nChoose a company whose profit growth increases at least 15% on a year-on-year basis. We can take the example of Titan Company. Titan Company\u2019s profit growth in 2018 has increased<\/g> 72% on year-on-year<\/g> basis.<\/span><\/p>\nReturn on Equity<\/strong><\/span><\/h6>\nIf a company fails to give you a yearly return of at least 20%, you may stop investing in that company and move to another one.<\/span><\/p>\nHere is a list of stocks which satisfy the above-said points.<\/span><\/p>\n\n\n\nBanking Sector<\/span><\/strong><\/td>\n<\/tr>\n\nPoints<\/span><\/strong><\/td>\nHDFC Bank<\/span><\/strong><\/td>\nYes Bank<\/span><\/strong><\/td>\n<\/tr>\n\nCompounded sales Growth<\/strong><\/span><\/td>\n18.01%<\/span><\/td>\n | 19.57%<\/span><\/td>\n<\/tr>\n\nCompounded Profit growth<\/strong><\/span><\/td>\n21.05%<\/span><\/td>\n | 26.56%<\/span><\/td>\n<\/tr>\n\nReturn on Equity<\/strong><\/span><\/td>\n18.60%<\/span><\/td>\n | 19.48%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\nInformation Technology<\/span><\/strong><\/td>\n<\/tr>\n\nPoints<\/span><\/strong><\/td>\nCyient Ltd.<\/span><\/strong><\/td>\nInfosys Ltd.<\/span><\/strong><\/td>\n<\/tr>\n\nDebt: Net Worth ratio<\/strong><\/span><\/td>\n0.03<\/span><\/td>\n | 0.00<\/span><\/td>\n<\/tr>\n\nCompounded sales Growth<\/strong><\/span><\/td>\n19.23%<\/span><\/td>\n | 15.50%<\/span><\/td>\n<\/tr>\n\nCompounded Profit growth<\/strong><\/span><\/td>\n17.13%<\/span><\/td>\n | 12.87%<\/span><\/td>\n<\/tr>\n\nReturn on Equity<\/strong><\/span><\/td>\n18.25%<\/span><\/td>\n | 25.66%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\nFinance<\/strong><\/span><\/td>\n<\/tr>\n\nPoints<\/strong><\/span><\/td>\nBajaj Finance<\/strong><\/span><\/td>\nCholamandalam Investment & Finance Company Ltd<\/strong><\/span><\/td>\n<\/tr>\n\nDebt: Net Worth ratio<\/strong><\/span><\/td>\n2.77<\/span><\/td>\n | 3.98<\/span><\/td>\n<\/tr>\n\nCompounded sales Growth<\/strong><\/span><\/td>\n39.22%<\/span><\/td>\n | 19.80%<\/span><\/td>\n<\/tr>\n\nCompounded Profit growth<\/strong><\/span><\/td>\n62.54%<\/span><\/td>\n | 32.33%<\/span><\/td>\n<\/tr>\n\nReturn on Equity<\/strong><\/span><\/td>\n20.12%<\/span><\/td>\n | 20.65%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\nAuto<\/span><\/strong><\/td>\n<\/tr>\n\nPoints<\/span><\/strong><\/td>\nTVS Motors<\/strong><\/span><\/td>\nEicher Motors<\/strong><\/span><\/td>\n<\/tr>\n\nDebt: Net Worth ratio<\/strong><\/span><\/td>\n0.88<\/span><\/td>\n | 0.00<\/span><\/td>\n<\/tr>\n\nCompounded sales Growth<\/strong><\/span><\/td>\n16.74%<\/span><\/td>\n | 14.78%<\/span><\/td>\n<\/tr>\n\nCompounded Profit growth<\/strong><\/span><\/td>\n22.98%<\/span><\/td>\n | 42.97%<\/span><\/td>\n<\/tr>\n\nReturn on Equity<\/strong><\/span><\/td>\n25.00%<\/span><\/td>\n | 28.45%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\nAuto Ancillery<\/span><\/strong><\/td>\n<\/tr>\n\nPoints<\/span><\/strong><\/td>\nMinda Industries<\/strong><\/span><\/td>\nMotherson Sumi<\/strong><\/span><\/td>\n<\/tr>\n\nDebt: Net Worth ratio<\/strong><\/span><\/td>\n0.17<\/span><\/td>\n | 0.77<\/span><\/td>\n<\/tr>\n\n | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |