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While stepping into the new calendar year, one cannot but look back on CY10 wistfully and ponder. The
markets commenced the year with huge promises and a distinct edge over peer counties. Our banking
systems, often called archaic, had emerged through the global crisis relatively unscathed without
recapitalisation and the growth engine of our economy stood more or less intact. The slow and steady
upsurge in per capita income has maintained the trend of creation of a strong consumption class in
India, thereby making our economy dependent on domestic consumption to a large extent, with a
relatively low reliance on exports.
The only dark cloud on the horizon at that time was inflation, which the government was trying to tame
with all the resources at its disposal. The budget was a pragmatic exercise and government walked the
talk when it implemented certain gutsy reforms like partial decontrol of petroleum product prices, auctioning
of 3G licenses, etc. Thus, the stage was set for markets to remain buoyant, which was borne out by the
fact that they came within striking range of all time highs in Nov'10. FII interest in India was at the
highest and inflow for CY10 at USD28.5bn surpassed the high of USD18.5bn for CY07.
However, as the year draws to an end, there have been some blips which have the makings of a potential
spoilsport. The parliamentary deadlock over the 2G telecom license issue, gyrations in Andhra Pradesh
political scenario, hiccups in quite a few big ticket projects due to rule book implementation by the
environment ministry, the so called loan scam, deferral of GST implementation, etc., have turned to be
the proverbial Achilles' heels. However, there have been some silver linings like the successful big ticket
listing of Coal India and the decisive election mandate in Bihar. The uncertainties towards the end of the
year have resulted in the Indian markets shedding some of their gains with the broad-based indices
(BSE500) barely outperforming global indices. Thus, as we enter into CY11, the quest for profitable
investment options would be a bit harder as the past few weeks have heralded a flight to quality, size and
safety.
We, at Antique, are of the belief that upheavals in the market notwithstanding, there exist quite a few
investment options which not only offer a degree of safety on the business model and earnings front but
also the promise of growth owing to their balance sheet strength and prudent capital allocations. We
have attempted to weave together the threads of domestic consumption stories, strong costing and
operational advantages, high growth potential and capable management with implementation skills to
vector on some of them.
We therefore bid adieu to CY10 and sign off by presenting you, our patrons, with '20 Mid-Cap and 11
Large-Cap ideas’ from our coverage universe, which we believe will merit serious consideration as investment
opportunities in the New Year. After all, Mighty oaks from little acorns grow!!
20:11 Ideas for 2011
11 Large Cap Ideas for 2011
1 Reliance Industries
2 TCS
3 ITC
4 ICICI Bank
5 Larsen & Toubro
6 Tata Motors
7 Tata Steel
8 Sun Pharmaceutical Ind
9 Mahindra & Mahindra
10 Power Grid Corp of India
11 Hindalco Industries
20 Midcap Ideas for 2011
1 Oil India
2 Siemens
3 Idea Cellular
4 Sun TV Network
5 Union Bank of India
6 Shriram Transport Finance Co
7 Exide Industries
8 Dish TV India
9 Pantaloon Retail (India)
10 Aurobindo Pharma
11 Petronet LNG
12 Shree Renuka Sugars
13 Essar Shipping, Ports & Logistics
14 Havells India
15 BGR Energy Systems
16 Mahindra Holidays & Resorts
17 Phoenix Mills
18 Sterlite Technologies
19 Escorts
20 Tecpro Systems
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