Monthly Net Asset Value

RNS Number : 5712Z

India Capital Growth Fund Limited

07 February 2014

 

7 February 2014

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

Net Asset Value statement as at 31 January 2014

Net Asset Value

The Company announces its Net Asset Value per share as at 31 January 2014 was 44.68 pence.

In January the Net Asset Value (NAV) fell 3.9%, whilst the BSE Midcap Index was down 6.8%, delivering an outperformance against this notional benchmark of 2.9%, all in Sterling terms. Against Ocean Dial's Composite Index, the portfolio outperformed by 2.0%, whilst in local currency terms, the NAV decreased 3.0% for the month.

Portfolio update

Positive contributors to the portfolio's performance came from IPCA Laboratories (up 14.5%), Jyothy Laboratories (up 14.2%) and Motherson Sumi (up 11.8%). Negative attribution came from Dish TV (down 20.9%), Yes Bank (down 16.9%) and Idea (down 14.0%).

Market and economic update

In January the BSE Sensex fell 3.1% and BSE Midcap Index fell 5.9% in local currency terms. A relatively modest US$125m of Indian equities was purchased by Foreign Institutional Investors over the month while domestic mutual funds were net sellers. The Indian Rupee depreciated by 0.9% for the month, but was one of the better performing Emerging Markets currencies, helped by the Reserve Bank of India's (RBI) efforts over the past three months to boost its foreign currency reserves as well as a structural improvement in the current account deficit.

The RBI surprised the markets in January with a 25bps increase in base interest rates. However the Governor sought to comfort markets by indicating that the need for further tightening over the near-term is less likely if inflation tracks RBI's expected disinflationary path. CPI and WPI annual inflation rates for the month of December were 9.9% and 6.2% respectively which was better than expected helped mainly by a fall in vegetable prices.

December quarterly results reported by companies in the Financial, Consumer, Telecom, Industrial and Cement sectors have been disappointing whilst companies in the IT and Pharmaceutical sectors have generally reported good results.

Portfolio analysis by sector as at 31 January 2014
Sector	No. of Companies	% of Portfolio
Financials	8	21.1%
Industrials	6	16.3%
IT	5	13.5%
Healthcare	3	11.0%
Consumer Staples	3	10.8%
Consumer Discretionary	2	7.3%
Materials	3	5.7%
Energy	2	4.3%
Telecommunications	1	3.1%
Total Equity Investment	33	93.1%
Net Cash		6.9%
Total Portfolio	33	100.0%
Top 20 holdings as at 31 January 2014
Holding	Sector	% of Portfolio
Jyothy Laboratories	Consumer Staples	5.9%
KPIT Cummins Infosystems	IT	5.3%
Motherson Sumi Systems	Consumer Discretionary	4.4%
The Federal Bank	Financials	4.3%
Kajaria Ceramics	Industrials	3.8%
Divi's Laboratories	Healthcare	3.7%
NIIT Technologies	IT	3.7%
IPCA Laboratories	Healthcare	3.7%
Lupin	Healthcare	3.6%
Dewan Housing	Financials	3.5%
Jammu & Kashmir Bank	Financials	3.5%
Tech Mahindra	IT	3.5%
Idea Cellular	Telecommunications	3.0%
Eicher Motors	Industrials	3.0%
Emami	Consumer Staples	3.0%
Dish TV India	Consumer Discretionary	2.9%
Voltas	Industrials	2.7%
Sobha Developers	Financials	2.5%
Larsen & Toubro	Industrials	2.5%
Indusind Bank	Financials	2.5%
Portfolio analysis by market capitalisation size as 31 January 2014
Market capitalisation size	No. of Companies	% of Portfolio
Small Cap (M/Cap <INR15bn)	1	0.4%
Mid Cap (INR15bn <M/Cap<INR100bn)	18	53.2%
Large Cap (M/Cap > INR100bn)	13	39.5%
Unlisted	1	0.0%
Total Equity Investment	33	93.1%
Net Cash		6.9%
Total Portfolio	33	100.0%

 

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