Net Asset Value(s)

RNS Number : 8650W

India Capital Growth Fund Limited

06 February 2012

 



6 February 2012

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

Net Asset Value statement as at 31 January 2012

Net Asset Value

The Company announces its Net Asset Value per share as at 31 January 2012 was 47.00 pence.

Portfolio update

In January 2012 the Net Asset Value (NAV) of India Capital Growth Fund Limited increased 18.7% in Sterling terms driven by a 13.0% increase in the underlying value of the portfolio and a 4.8% move in the Rupee. This can be compared to an 11.2% increase in the Sensex and a 14.3% increase in the BSE MidCap Index, which is the portfolio's notional benchmark.

The portfolio kept pace with the market's improvement in spite of the high levels of cash held by the portfolio. This is attributable to the portfolio's substantial exposure to the financial sector, where its holdings in IDFC, Yes Bank and Indusind Bank rose 45%, 38% and 29% respectively, a significant recovery in the industrial sector where the portfolio's holdings in IVRCL, Voltas and Sintex were up 78%, 31% and 28% in that order and favourable stock selection in the consumer discretionary sector with the portfolio's holdings in Hathaway Cables up 26% and in Prime Focus up 21%.

India was at the forefront of the recovery in global stock markets in January, enhanced by a reversal in the value of the Rupee, which recovered 6.8% against the US Dollar and 5.2% against Sterling. Fund flow data for January shows net inflows of USD2bn from foreign participants. Conversely the local mutual fund participants have been net sellers for the month.

The levels of cash held by the portfolio have been reducing as a result of selective investments but only when stocks reach levels where substantial upside is expected.  Whilst markets in India have enjoyed a significant upturn this month there are still reasons for the risk appetite globally, and in India, to reverse direction once again. However opportunities are expected over the months ahead to increase the portfolio's exposure to high quality investments at attractive prices.

Portfolio analysis by sector as at 31 January 2012

Sector	No. of Companies	% of Portfolio
Financials	9	24.0%
Industrials	6	14.6%
Consumer Discretionary	4	9.3%
Health Care	4	6.8%
Materials	6	6.7%
Energy	2	5.4%
Consumer Staples	3	4.8%
IT	3	4.3%
Utilities	1	3.3%
Total Equity Investment	38	79.2%
Net Cash		20.8%
Total Portfolio		100.0%

Top 10 holdings as at 31 January 2012

Holding	Sector	% of Portfolio
Federal Bank	Financials	4.0%
Prime Focus	Consumer Discretionary	3.9%
CESC Ltd	Utility	3.3%
Manappuram Finance	Financials	3.2%
Cairn India	Energy	3.1%
Jain Irrigation	Industrials	3.0%
Larsen & Tubro	Industrial	2.9%
Yes Bank	Bank	2.8%
Indian Bank	Financials	2.7%
Indusind Bank	Financials	2.7%

Portfolio analysis by market capitalisation size as at 31 January 2012

Market capitalisation size	No. of Companies		% of Portfolio
Small Cap (M/Cap <INR 15bn)		7	14.8%
Mid Cap (INR 15bn <M/Cap<INR 100bn)		22	45.7%
Large Cap (M/Cap > INR 100bn)		8	18.7%
Unlisted		1	0.0%
Total Equity Investment		38	79.2%
Net Cash			20.8%
Total Portfolio			100.0%

 

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