Net Asset Value(s)

RNS Number : 1582E

India Capital Growth Fund Limited

07 May 2013

 



7 May 2013

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

Net Asset Value statement as at 30 April 2013

Net Asset Value

The Company announces its Net Asset Value per share as at 30 April 2013 was 51.05 pence.

In April the Net Asset Value (NAV) was up 3.7% in Sterling terms, whilst the BSE Midcap Index was up 1.2%, delivering an outperformance against the notional benchmark of 2.5% in Sterling terms. Against Ocean Dial's Composite Index, the portfolio delivered an outperformance of 2.4%.

Portfolio update

Positive contributors to the portfolio's performance came from Yes Bank (up 17.0%), Idea Cellular (up 16.5%) and J&K Bank (up 14.3%) whilst negative attribution came from Manappuram Finance (down 19.7%), Federal Bank (down 5.0%) and Max India (down 3.2%).

Market and economic update

Indian equity markets bounced back this month following last month's decline, with the Sensex up 3.6% influenced by the recent sharp fall in the price of crude and gold, which together account for 40% of India's total imports. If these price levels remain, the current account deficit should reduce and inflation fall. In April FII's continue to remain net equity buyers to the tune of USD1.0bn, while locals were net sellers.

Wholesale price inflation fell to 5.9% in March from 6.8% in February which is its lowest level since November 2009. Core inflation also declined to 3.4% in March from 3.8% in February, primarily as economic slowdown continues to curtail demand. This was followed by a further 25bps rate cut by RBI in its monetary policy on 3 May 2013. In the current easing cycle, which started in April 2012, the RBI has reduced monetary policy rates by 125bps. RBI has forecast GDP growth of 5.7% for FY14, versus the government forecast of more than 6%, as RBI is of the view that lower interest rates have been unable to stimulate growth due to supply-side bottlenecks and therefore further policy easing would not be able to revive growth without government support.

The corporate results season started this month with the IT sector disappointing. The Consumer Staples sector continued to report decent revenue growth dispelling the notion of any consumption slowdown. Private sector banks also reported healthy numbers with improved asset quality.

The parliament session has resumed post the budget session and is set to conclude on May 10. The issue of parliamentary disruptions and the productivity of the House have come to the fore again which may delay the decision over the crucial Food Security, Land Acquisition, Finance and Insurance & Pension Bills. 

Portfolio analysis by sector as at 30 April 2013

Sector	No. of Companies	% of Portfolio
Financials	11	32.0%
Industrials	6	15.7%
Consumer Discretionary	4	12.4%
Consumer Staples	3	10.5%
Health Care	3	9.1%
Energy	3	5.9%
Information Technology	2	3.7%
Telecommunication Services	1	3.3%
Materials	1	1.8%
Total Equity Investment	34	94.4%
Net Cash		5.6%
Total Portfolio		100.0%

Top 10 holdings as at 30 April 2013

Holding	Sector	% of Portfolio
Jyothy Laboratories	Consumer Staples	5.7%
Federal Bank	Financials	5.3%
Yes Bank	Financials	4.3%
Lupin	Health Care	3.8%
Jammu & Kashmir Bank	Financials	3.7%
KPIT Cummins	IT	3.7%
Dish TV India	Consumer Discretionary	3.6%
Idea Cellular	Telecom	3.3%
Max India	Industrials	3.3%
Larsen & Toubro	Industrials	3.3%

Portfolio analysis by market capitalisation size as at 30 April 2013

Market capitalisation size	No. of Companies	% of Portfolio
Small Cap (M/Cap <INR15bn)	3	4.6%
Mid Cap (INR15bn <M/Cap<INR100bn)	18	55.7%
Large Cap (M/Cap > INR100bn)	12	34.1%
Unlisted	1	0.0%
Total Equity Investment	34	94.4%
Net Cash		5.6%
Total Portfolio		100.0%

 

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