Net Asset Value(s)

RNS Number : 8748N

India Capital Growth Fund Limited

04 October 2012

 



4 October 2012

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

Net Asset Value statement as at 30 September 2012

Net Asset Value

The Company announces its Net Asset Value per share as at 30 September 2012 was 50.37 pence.

Portfolio update

The Net Asset Value (NAV) of the Company rose 12.1% in sterling terms in September, up 9.2% in local currency for the same period. By comparison, the BSE Midcap Index, the company's notional benchmark, rose 12.9% whilst the BSE Sensex Index rose 10.5%. Year to date the NAV of the Company has increased 27.2% in sterling terms.

Positive contributors to the portfolio's performance came from Dish TV (a DTH satellite service provider) which rallied 28.2%, Max India (a Life Insurance company) up 24.5% and Indian Bank which rose 25.2%. Negative attribution arose from Divi's Laboratories (a manufacturer of active pharma ingredient) down 5.0%, Cairn India (an Oil Exploration company) which fell 2.6% and KPIT Cummins (an IT Software company) down1.0% over the period. This month an initial holding in Dewan Housing (a housing finance company) was initiated.

Market and economic update

This month witnessed the Indian government announcing a number of policy reforms which had an immediately positive impact on the market. Sector wise, foreign investment limits have been raised in broadcasting to 74%, in multi format retail to 51% and in aviation and power trading exchanges to 49%. This is a symbolic first step, although it will need to be backed up by further reforms in the regulatory arena across all sectors before any real investment evolves. That said, these are bold steps politically and an encouraging sign. In an attempt to address the fiscal crisis, the government has increased the price of diesel by 12% and capped the subsidy for LPG.

The total net inflow from FII for the month was USD3.6bn and for 2012 YTD the net inflow stands at USD15.9bn. Domestic mutual funds continue to be net sellers reducing their exposure by USD68m. The recent surge of inflows has helped to strengthen the Rupee this month by 2.5% against GBP and by 5.4% against the USD. 

India's Wholesale Price Inflation for August was reported at 7.55% compared to 6.87% in July. However on a more positive note the monsoon continued to recover reducing the season's rainfall shortage to 7% vis-à-vis 12% in August, easing additional inflationary concerns.

Portfolio analysis by sector as at 30 September 2012

Sector	No. of Companies	% of Portfolio
Financials	10	30.9%
Industrials	6	16.5%
Consumer Discretionary	5	12.0%
Health Care	3	9.5%
Energy	3	7.9%
Consumer Staples	3	7.9%
Utilities	1	3.7%
Information Technology	3	2.8%
Materials	1	2.0%
Telecommunication Services	1	1.8%
Total Equity Investment	36	95.0%
Net Cash		5.0%
Total Portfolio		100.0%

Top 10 holdings as at 30 September 2012

Holding	Sector	% of Portfolio
Federal Bank Ltd	Financials	5.2%
Jyothy Laboratories Ltd	Consumer Staples	4.6%
Dish TV India Ltd	Consumer Discretionary	4.3%
Max India Ltd	Industrials	3.9%
IDFC Ltd	Financials	3.7%
Yes Bank Ltd	Financials	3.7%
Cesc Ltd	Utilities	3.7%
Indian Bank Ltd	Financials	3.5%
Larsen & Toubro Ltd	Industrials	3.4%
IPCA Laboratories Ltd	Health Care	3.3%

Portfolio analysis by market capitalisation size as at 30 September 2012

Market capitalisation size	No. of Companies	% of Portfolio
Small Cap (M/Cap <INR 15bn)	4	8.5%
Mid Cap (INR 15bn <M/Cap<INR 100bn)	20	55.9%
Large Cap (M/Cap > INR 100bn)	11	30.6%
Unlisted	1	0.0%
Total Equity Investment	36	95.0%
Net Cash		5.0%
Total Portfolio		100.0%

 

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