Net Asset Value(s)

RNS Number : 4720G

India Capital Growth Fund Limited

06 June 2013

 



6 June 2013

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

Net Asset Value statement as at 31 May 2013

Net Asset Value

The Company announces its Net Asset Value per share as at 31 May 2013 was 50.77 pence.

In May the Net Asset Value (NAV) was down 0.5% in Sterling terms, whilst the BSE Mid Cap Index was down 1.6%, delivering an outperformance against the notional benchmark of 1.1% in Sterling terms. Against Ocean Dial's Composite Index, the portfolio delivered an outperformance of 1.2%.

Portfolio update

Positive contributors to the portfolio's performance came from Jyothy Laboratories (up 15.5%), Eicher Motors (up 25.1%) and Kajaria Ceramics (up 19.4%), whilst negative attribution came from Indian Bank (down 16.5%), Jammu & Kashmir Bank (down 10.2%) and Divi's Laboratories (down 9.0%).

Market and economic update

In spite of strong equity inflows of USD4bn into the market this month, the Rupee fell to 56 against the US Dollar on the back of further deterioration in the trade deficit, rumours that the Central Bank was rebuilding foreign exchange reserves and global macro concerns.

GDP growth was reported at 4.8% for the fiscal quarter ending March 2013 and at 5% for the full year, the lowest level for a decade. Closer inspection of the numbers suggests that the deterioration in growth in the manufacturing sector has bottomed, whilst the services sector, which had been slowing, is now stabilising. Looking forward we expect a modest recovery in GDP growth, close to 6% for next year. On a more positive note, inflation pressures continued to ease as wholesale inflation fell to 4.9% and core inflation eased to 2.7% which is below RBI's target. Importantly consumer inflation is also now falling as input prices fall and demand pressure eases, thereby increasing expectations of additional interest rate easing.

The corporate results season ended with the Consumer, Pharmaceutical, IT and Telecom sectors reporting earnings which modestly beat low expectations. In contrast the more cyclical sectors, Capital Goods, Infrastructure and Materials in particular continued to disappoint. Private Sector Banks beat guidance as opposed to their public sector peers whose results were lacklustre at best.

Portfolio analysis by sector as at 31 May 2013

Sector	No. of Companies	% of Portfolio
Financials	11	30.0%
Industrials	6	16.4%
Consumer Discretionary	4	13.5%
Consumer Staples	3	11.8%
Health Care	3	9.3%
Information Technology	3	5.0%
Energy	2	3.9%
Telecommunication Services	1	3.2%
Materials	2	1.5%
Total Equity Investment	35	94.7%
Net Cash		5.3%
Total Portfolio		100.0%

Top 20 holdings as at 31 May 2013

Holding	Sector	% of Portfolio
Jyothy Laboratories	Consumer Staples	6.5%
Federal Bank	Financials	5.1%
Yes Bank	Financials	4.1%
Lupin	Health Care	3.9%
Kajaria Ceramics	Consumer Discretionary	3.7%
KPIT Cummins Infosystems	IT	3.7%
Dish TV India	Consumer Discretionary	3.5%
Indusind Bank	Financials	3.5%
Emami	Consumer Staples	3.5%
Jammu & Kashmir Bank	Financials	3.3%
Eicher Motors	Industrials	3.2%
Motherson Sumi Systems	Consumer Discretionary	3.2%
Idea Cellular	Telecom	3.2%
Max India	Financials	3.2%
Berger Paints India	Materials	3.0%
Larsen & Toubro	Industrials	3.0%
Dewan Housing Finance	Financials	2.8%
IPCA Laboratories	Health Care	2.8%
Divi's Laboratories	Health Care	2.6%
Sintex Industries	Industrials	2.6%

Portfolio analysis by market capitalisation size as at 31 May 2013

Market capitalisation size	No. of Companies	% of Portfolio
Small Cap (M/Cap <INR15bn)	3	4.8%
Mid Cap (INR15bn <M/Cap<INR100bn)	19	54.6%
Large Cap (M/Cap > INR100bn)	12	35.3%
Unlisted	1	0.0%
Total Equity Investment	35	94.7%
Net Cash		5.3%
Total Portfolio		100.0%

 

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