Net Asset Value(s)

RNS Number : 7747L

India Capital Growth Fund Limited

04 August 2011

 



India Capital Growth Fund Limited

04 Aug 2011

India Capital Growth Fund Limited (the "Company" or "ICGF")

31 July 2011 NAV Statement

Net Asset Values

The Company announces its net asset value per share as at 31 July 2011 was 61.43 pence

Portfolio Update

During July the Net Asset Value (NAV) of India Capital Growth Fund Limited rose 2.7% in Sterling terms and 2.9% in local currency terms. Over the period the BSE Midcap Index was up 0.9% in INR terms, whilst the main board, the BSE Sensex, was down 3.4%. 

The main board declined as the Reserve Bank of India surprised the market by raising the repo rate by 50bps to 8% rather than by the expected 25bps.  The RBI also raised its Wholesale Prices Index inflation forecast for March 2012 to 7% year-on-year from 6% which added to the negative sentiment. 

India is in the midst of the monsoon season, the outcome of which is critical to the health of the economy. Rainfall for July has been 14% below average but, due to a strong June, overall rainfall during the monsoon this year has so far been a modest 0.04% below with the long-term average cumulative seasonal rainfall for June and July. 

Another real positive has been India's current account deficit which has declined sharply to 1.1% of GDP in Q4FY11 against 2.1% in the previous quarter due to strong growth in exports of goods and service.  This has led to favourable movements in both the trade deficit and invisibles.

The main contributor to the portfolio's outperformance was a 38% appreciation in Prime Focus. The company continues to be a market leader in India and is increasing its reach in the UK and North America. It recently completed the 2D to 3D stereoscopic conversion of Paramount Pictures 'Transformers: Dark of the Moon', Warner Bros. Pictures Green Lantern and Harry Potter and the Deathly Hallows Part Two. In other areas Elecon Engineering appreciated 25%, United Phosphorus appreciated 9%, KPIT Cummins appreciated 10% and Redington India appreciated 12.5%.

Negative attribution towards the funds' performance came from OnMobile, value added service provider to mobile telecom users, which was down 14.5%, IVRCL down 11% and Dhanlaxmi Bank down 10%.

Overall July was a very satisfactory month for the Company on both an absolute and relative basis.

Analysis of holdings at 31 July 2011

Sector Summary	No. of Companies	% of Portfolio
Financials	12	34.3%
Industrials	9	17.2%
Consumer Discretionary	3	12.3%
Materials	5	11.1%
IT	3	5.1%
Health Care	2	4.9%
Telecom Services	2	2.7%
Consumer Staples	2	2.7%
Utilities	1	1.9%
Total Equity Investment	39	92.2%
Net Cash		7.8%
Total Portfolio		100.0%

Top 10 equity holdings at 31 July 2011

Holding	Sector	% of Portfolio
Marwadi Shares and Finance	Financials	9.6%
Prime Focus	Consumer Discretionary	7.4%
United Phosphorus	Materials	4.5%
S. Kumars Nationwide	Consumer Discretionary	4.0%
Bilcare	Health Care	3.9%
Sintex Industries	Industrial	3.5%
Jain Irrigation	Industrial	3.3%
Manappuram Gen Fin & Leasing	Financials	2.9%
Indian Bank	Financials	2.9%
Federal Bank	Financials	2.9%

Portfolio breakdown by size at 31 July 2011

Size	No. of Companies	% of Portfolio
Small Cap  (M/Cap <INR 15bn)	12	24.6%
Mid Cap (INR 15bn <M/Cap<INR 100bn)	20	48.3%
Large Cap (M/Cap > INR 100bn)	5	9.7%
Unlisted	2	9.6%
Cash/Cash Equivalent		7.8%
Total	39	100.0%

 

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