7 July 2015
India Capital Growth Fund Limited (the "Company" or "ICGF")
Net Asset Value statement at 30 June 2015
Net Asset Value
The Company announces its Net Asset Value per share as at 30 June 2015 was 77.80 pence.
In June the Net Asset Value (NAV) was down 3.6% whilst the BSE Mid Cap Index was down 2.7% (both in Sterling terms). Thus the NAV underperformed the notional benchmark by 0.9% and Ocean Dial's Composite Index by 0.9%. In local currency terms, the NAV fell 1.3% for the month.
The Company also announces its fully diluted NAV per share as at 30 June 2015 was 72.20 pence.
The above fully diluted NAV assumes that the 37,500,710 Subscription Shares rights will be exercised at their subscription price of 61 pence. The Subscription Shares have a subscription date of 6 August 2016. However, if at any time after 6 August 2015 the average middle market quotation for an Ordinary Share for at least 10 consecutive trading days is 5% or more above the subscription price, the Company has the right, (but not the obligation) by an announcement on a RIS to change the subscription date for exercise of the Subscription Shares to an earlier date (being a date not less than 30 days after the Company's announcement) that it is bringing forward the subscription date. In that event an announcement will be made on a RIS and a notice of the revised subscription date will be given to all holders of the Subscription Shares on the register at 5.00pm on the date falling three business days following the announcement of the revised subscription date.
Portfolio update
Positive attribution to the portfolio's performance came from Jyothy Labs (up 7.6%), Ramkrishna Forgings (up 6.5%), Dish TV (up 5.0%) and Federal Bank (up 3.4%). Negative attribution came from Kajaria Ceramics (down 13.8%), Tech Mahindra (down 13.8%) and Sobha Developers (down 16.9%).
Market and economic update
In June India's equity markets closed marginally down for the month; the BSE Sensex slipped 0.2% whilst the BSE Mid Cap Index fell 0.3%. Foreign Institutional Investors continued to lighten up, selling US$970m of equities over the month, while domestic institutions remained net buyers. The Indian Rupee depreciated 2.4% against Sterling but appreciated marginally against the US Dollar by 0.3%.
May's CPI data recorded 5.0% compared to 4.9% in April, well below the Reserve Bank's current target of 6% for end FY16. In June the rainfall has been well above average, partially abating some fears of another poor monsoon. Though the rains have started well, July and August remain crucial months. Surprisingly, the Government announced a nominal 3.7% year on year increase in minimum support prices for the paddy rice crop (June to October), well below the price increases of the previous administration. This has allayed market fears of a populist rerun as well as reducing the impact on future food prices.
The market was surprised positively by Industrial Production which grew 4.1% in April. Encouragingly this data was driven by 5.1% growth in manufacturing, in which the production of capital goods expanded by 11.1%. This is a volatile data series, but is supported by healthy indirect tax collections for April and May. In addition, consumer durables posted 1.3% growth year on year in April, compared to -4.7% in March and is positive for the first time in over two years.
Portfolio analysis by sector as at 30 June 2015 |
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Sector |
No. of Companies |
% of Portfolio |
Financials |
8 |
23.4% |
Industrials |
7 |
18.6% |
Consumer Discretionary |
5 |
15.7% |
Consumer Staples |
4 |
10.4% |
Materials |
4 |
10.2% |
Healthcare |
4 |
10.0% |
IT |
3 |
5.3% |
Energy |
1 |
0.9% |
Total Equity Investment |
36 |
94.5% |
Net Cash |
|
5.5% |
Total Portfolio |
36 |
100.0% |
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Top 20 holdings as at 30 June 2015 |
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Holding |
Sector |
% of Portfolio |
Federal Bank |
Financials |
5.1% |
Jyothy Laboratories |
Consumer Staples |
4.2% |
Motherson Sumi Systems |
Consumer Discretionary |
4.1% |
Dewan Housing |
Financials |
3.9% |
Dish TV India |
Consumer Discretionary |
3.9% |
Kajaria Ceramics |
Industrials |
3.8% |
PI Industries |
Materials |
3.8% |
Yes Bank |
Financials |
3.7% |
Emami |
Consumer Staples |
3.6% |
Max India |
Financials |
3.5% |
Eicher Motors |
Industrials |
3.4% |
Indusind Bank |
Financials |
3.3% |
Divi's Laboratories |
Healthcare |
3.1% |
Balkrishna Industries |
Consumer Discretionary |
3.1% |
Lupin |
Healthcare |
3.1% |
Ajanta Pharma |
Healthcare |
3.0% |
Tech Mahindra |
IT |
2.8% |
Gujarat Pipavav Port |
Industrials |
2.8% |
Exide |
Industrials |
2.6% |
Berger Paints India |
Materials |
2.5% |
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Portfolio analysis by market capitalisation size as 30 June 2015 |
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Market capitalisation size |
No. of Companies |
% of Portfolio |
Small Cap (M/Cap <INR60bn) |
12 |
19.1% |
Mid Cap (INR60bn <M/Cap<INR250bn) |
16 |
49.6% |
Large Cap (M/Cap > INR250bn) |
8 |
25.8% |
Total Equity Investment |
36 |
94.5% |
Net Cash |
|
5.5% |
Total Portfolio |
36 |
100.0% |