Net Asset Value(s)

RNS Number : 9239I

India Capital Growth Fund Limited

05 June 2014

 



5 June 2014

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

Net Asset Value statement at 31 May 2014

Net Asset Value

The Company announces its Net Asset Value per share as at 31 May 2014 was 57.46 pence.

In absolute terms the Net Asset Value (NAV) performed strongly, rising 10.1% in INR terms, enhanced by a further by 2.5% increase in the Rupee against Sterling.

Overall the NAV rose 12.9% in May, which compares favourably to the main board stocks which rose 10.8%, but less so against the portfolio's notional benchmark, the BSE Midcap which rose 18.6%. Against Ocean Dial's Composite Index, the portfolio underperformed by 3.8%. All figures are quoted in Sterling terms unless otherwise stated.

Portfolio update

Industrial and Financials were the best performing sectors this month as the market anticipated a cyclically led growth recovery. 45% of the portfolio is exposed to these areas and thus kept track with the BSE Midcap Index. Major contributors to positive performance were Dewan Housing rising 34%, Indian Bank up 32%, Jain Irrigation which rose 36% and Gujarat Pipapav which rallied 53% for the period. Elsewhere, the NAV was held back by profit taking in more defensive parts of the market which have performed well in recent years. Thus in Healthcare, Lupin fell 5.4%, whilst Divi's Labs and IPCA Labs were down 7.7% and 5.6% respectively. In IT, KPIT Cummins fell 7.7%. The underlying operational attractiveness of these businesses remains unchanged.

Market and Economic Update

All events in India in May were entirely over shadowed by an historic election result for the BJP led by Narendra Modi. For the first time in 40 years, and against best expectations, a single political party won a clear mandate from Indian voters for a five year mandate. Thus the BJP won 289 seats, and with pre-election partners in support, the National Democratic Alliance (NDA) won a total of 335. Equally telling was the drubbing received by Congress who managed a wretched 46 seats. Nothing could emphasise more the population's signalled desire to move away from socialist led policies riddled with corruption, to an open and accountable style of government as anticipated from Mr Modi. Since the result, India's new leader has already undermined the critics who labelled him as a Hindu extremist, by inviting Pakistan's PM to his inauguration. Modi's 12 years as Chief Minister of Gujarat highlight his ability to implement reform and generate high levels of growth. The question remains as to the extent to which this can be replicated on the larger stage given the mandate awarded to him. Crucially for a market that has priced in the immediate good news, much depends on how quickly the reform agenda can start, and the extent to which growth can recover. The first signs are very encouraging, but there is much to be done.

Portfolio analysis by sector as at 31 May 2014
Sector	No. of Companies	% of Portfolio
Financials	9	26.9%
Industrials	9	21.8%
IT	6	13.1%
Consumer Staples	4	9.4%
Healthcare	3	8.8%
Materials	3	7.0%
Consumer Discretionary	2	6.6%
Energy	0	0.0%
Telecommunications	1	2.0%
Total Equity Investment	37	95.6%
Net Cash		4.4%
Total Portfolio	37	100.0%
Top 20 holdings as at 31 May 2014
Holding	Sector	% of Portfolio
Federal Bank	Financials	5.1%
Kajaria Ceramics	Industrials	4.3%
Dewan Housing	Financials	4.1%
Jyothy Laboratories	Consumer Staples	4.0%
Motherson Sumi Systems	Consumer Discretionary	4.0%
Tech Mahindra	IT	3.9%
Yes Bank	Financials	3.6%
KPIT Cummins Infosystems	IT	3.6%
Sobha Developers	Financials	3.2%
Larsen & Toubro	Industrials	3.2%
Eicher Motors	Industrials	3.1%
Jammu & Kashmir Bank	Financials	3.1%
Lupin	Healthcare	3.1%
Divi's Laboratories	Healthcare	2.9%
NIIT Technologies	IT	2.9%
IPCA Laboratories	Healthcare	2.8%
Indusind Bank	Financials	2.8%
Indian Bank	Financials	2.8%
Max India	Industrials	2.7%
PI Industries	Materials	2.7%
Portfolio analysis by market capitalisation size as 31 May 2014
Market capitalisation size	No. of Companies	% of Portfolio
Small Cap (M/Cap <INR15bn)	4	3.0%
Mid Cap (INR15bn <M/Cap<INR100bn)	19	51.5%
Large Cap (M/Cap > INR100bn)	14	41.2%
Unlisted	0	0.0%
Total Equity Investment	37	95.6%
Net Cash		4.4%
Total Portfolio	37	100.0%

 

END

 

 

NAVUGUCCQUPCURA