Net Asset Value(s)

RNS Number : 8467M

India Capital Growth Fund Limited

05 February 2009

 



India Capital Growth Fund Limited

05 February 2009

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

31 January 2009  NAV Statement

Net Asset Values

The Company announces its net asset values per share as at 31 January 2009:

Net asset value per share - undiluted                             38.01 p

Net asset value per share - fully diluted                        38.01 p

Update

NAV for the month was down 11.3%. While the BSE Sensex was only down 2.3% , the BSE Small Cap Index was down 9.3% on the month. The Rupee appreciated marginally against Sterling.  Amidst volatility, markets continued to swing in response to global events and quarterly results, and once again the small-cap stocks bore the brunt. 

FIIs turned negative once more with net outflow of USD 1.1 billion as compared to an inflow of USD 433mn in the previous month. Domestic mutual funds were also net sellers withdrawing USD 294 Million as compared to an investment of USD 71 Million in December 2008.

The Reserve Bank of India (RBI) reduced the repo rate (the rate at which banks borrow from the central bank) by 100bps to 5.5%, the reverse repo rate (at which banks deposit funds) by 100 bps to 4% and the cash reserve ratio (the proportion of funds that banks need to hold on deposit with the central bank) by 50bps to 5%. Inflation (measured by the wholesale prices index) was at 5.07% for the week ended 24 January 2009. The RBI in its monetary policy statement on January 27th revised GDP growth estimates downwards to 7% for FY09 (ending 31 March 2009) from the earlier estimate of 7.5% to 8%. 

The recently announced quarterly results to 31 December 2008 have shown a healthy top line growth for most companies, with an average growth over the corresponding quarter in 2007 of 27% (excluding two companies together representing 1.8% of the portfolio). Operating margins also remained high (average 21% for the same group in the same period). PAT however has suffered. Four of the 24 companies made a loss in the quarter to 31 December and for others PAT is well down on a year ago. This is primarily due to interest costs that rose sharply in 2008. The burden of carrying higher working capital as a consequence of the general tightening of credit has also hit cash flows. Interest rates are now coming down but will continue to affect financial performance for the next quarter. 

Current valuations remain attractive. The average trailing twelve month PE for the profit making companies is 5.5x. 

The net cash as on 31 January 2009 was GBP 2.9 Million, 10.2% of the portfolio.

Analysis of holdings at 31 January 2009 

Sector Summary	No. of Companies	% of Portfolio
Financial Services	3	15.7%
Textiles	2	13.0%
Transportation	2	12.3%
Pharmaceutical services and packaging	1	11.6%
Media	2	9.3%
IT	3	6.3%
Process controls	1	5.8%
Offshore oil & gas services	1	4.3%
Housing & Construction	4	4.1%
Hotels	1	2.7%
Engineering / Manufacturing	2	2.4%
Others	2	2.3%
Total investments	24	89.8%
Net Cash		10.2%
Total Portfolio		100.0%

 Top 10 holdings at 31 January 2009

Holding	Sector	% of Portfolio
Bilcare	Pharma Packaging	11.6%
Marwadi Shares and Finance	Financial Services	10.8%
Varun Shipping	Transport	9.3%
S. Kumars Nationwide	Textiles	9.0%
ICSA India	Process Controls	5.8%
Prime Focus	Media	4.9%
IOL Netcom	Media	4.4%
Logix Microsystems	IT	4.4%
Great Offshore	Offshore Oil and Gas Services	4.3%
Grabal Alok Impex	Textiles	4.0%

Portfolio breakdown by size at 31 January 2009

Size	No. of Companies	% of Portfolio
Small Cap	21	78.2%
Unlisted	3	11.6%
Cash		10.2%
Total		100.0%

 

END

 

 

NAVUUUWUPUPBGUA