Net Asset Value(s)

RNS Number : 8971C

India Capital Growth Fund Limited

08 May 2012

 



8 May 2012

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

Net Asset Value statement as at 30 April 2012

Net Asset Value

The Company announces its Net Asset Value per share as at 30 April 2012 was 44.01 pence.

Portfolio update

In April 2012 the Net Asset Value (NAV) of India Capital Growth Fund Limited decreased 4.3% in Sterling terms. Whilst the underlying value of the portfolio increased fractionally in local currency terms, a 4.5% depreciation of the Rupee against Sterling led to the decrease in the NAV for the month. This fractional increase can be compared to a 0.5% decline in the Sensex and BSE Midcap Index in local currency terms.

The consumer staples, healthcare and IT sectors made positive contributions for the portfolio this month. Emami (a manufacturer of personal care products) rose 13.0%, whilst Jyothy Labs (a manufacturer of home care products) rose 8.7%. The performance in the healthcare space was driven by Divi's Labs (a manufacturer of Active Product Ingredient (API)) which rose 11.8% and in the IT sector KPIT Cummins (an IT solutions provider) rallied 6.9%. Other stocks which contributed to the positive performance included Max India (a life and health insurance service provider) which was up 17.2% and Eicher Motors (a manufacturer of light commercial vehicles) which rose 14.6%.

The main negative performers in the portfolio arose from Jain Irrigation (a manufacturer of irrigation equipment), which fell 10.4%, Indian Bank (a public sector bank), which dropped 9.3% and IDFC (infrastructure project finance provider) which fell 10.4%.

In a surprise move, the Reserve Bank of India (RBI) cut its repo rate by 50bps in its annual monetary policy review, while keeping Credit Reserve Ratio unchanged. Since the market anticipated a 25 bps reduction, the additional 25 bps cut was designed to re-ignite India's growth in spite of the possible inflationary consequences.

The RBI indicated that the inflationary risk remains high even though it has already fallen significantly. The anticipated pressure arises from the expected consequence of higher commodity prices, particularly oil, and further weakness in the domestic currency on the back of a high current account deficit and weak capital inflows.

These considerations limit the space for further reduction in policy rates going forward.

April was the first month of the year where FIIs were net sellers to the tune of USD206m, resulting in year to date net inflows of USD8.6bn. This month domestic players were net sellers to the tune of USD132m.

Portfolio analysis by sector as at 30 April 2012

Sector	No. of Companies	% of Portfolio
Financials	10	26.6%
Industrials	6	15.2%
Health Care	6	11.7%
Consumer Discretionary	4	9.2%
Materials	4	7.5%
Energy	3	7.3%
IT	3	5.8%
Consumer Staples	2	5.6%
Utilities	1	3.3%
Telecom	1	1.9%
Total Equity Investment	40	94.1%
Net Cash		5.9%
Total Portfolio		100.0%

Top 10 holdings as at 30 April 2012

Holding	Sector	% of Portfolio
Federal Bank	Financials	4.1%
Dish TV India	Consumer Discretionary	3.6%
Lupin	Health Care	3.4%
KPIT Cummins Infosystems	IT	3.4%
CESC	Utility	3.2%
Jain Irrigation Systems	Industrials	3.2%
Max India	Industrials	3.2%
Jyothy Labs	Consumer Staples	3.1%
Sobha Developers	Financials	3.1%
Cairn India	Energy	3.1%

Portfolio analysis by market capitalisation size as at 30 April 2012

Market capitalisation size	No. of Companies	% of Portfolio
Small Cap (M/Cap <INR 15bn)	7	13.9%
Mid Cap (INR 15bn <M/Cap<INR 100bn)	21	51.8%
Large Cap (M/Cap > INR 100bn)	11	28.4%
Unlisted	1	0.0%
Total Equity Investment	40	94.1%
Net Cash		5.9%
Total Portfolio		100.0%

 

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