Net Asset Value(s)

RNS Number : 7810Y

India Capital Growth Fund Limited

06 March 2012

 



6 March 2012

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

Net Asset Value statement as at 29 February 2012

Net Asset Value

The Company announces its Net Asset Value per share as at 29 February 2012 was 48.68 pence.

Portfolio update

In February 2012 the Net Asset Value (NAV) of India Capital Growth Fund Limited increased 3.5% in Sterling terms driven by a 3.2% increase in the underlying value of the portfolio and a 0.3% move in the Rupee. This can be compared to a 3.3% increase in the Sensex and an 8.8% increase in the BSE MidCap Index.

Industrials and consumer staples contributed to the positive performance of the portfolio this month. Jyothy Labs (a manufacturer and distributor of household products) rose 19.3%, whilst in the industrial sector Jain Irrigation (a manufacturer of micro irrigation systems) and Voltas (engineering solutions) were up 12.6%, and 14.0% respectively. In addition IVRCL (a construction company) rose 12.4%. Other stocks which contributed to the positive performance were Indian Bank, up 9.3%, and Cairn India which rose 8.8%.

The portfolio's positive performance was restricted however by its exposure to Manapuram Finance (a non-banking financial company), which fell 26.0% and Dish TV (a provider of Satellite TV subscription services), which fell 13.1%. Prime Focus, a core holding in the fund, gave back 7.0% after some strong relative performance recently. Although the portfolio's cash position has reduced to 13.0% of NAV, it continues to act as a drag on performance in a rising market.

India's GDP growth for Q3 FY 2012 (Oct 11 - Dec 11) was reported at a three year low of 6.1%. The principal contributors to the slower growth were the manufacturing and mining sectors. GDP growth for YTD FY 2012 (nine months to Dec 11) now stands at 6.9% as against 8.1% for the same period in the previous year.

On the positive side Wholesale Price Index inflation for Jan 12 was 6.6% compared to 7.5% in Dec 11, helped mainly by food inflation which fell 0.5%.

Foreign Institutional Investor (FII) flows continued the positive trend witnessed since the start of the year rising to a net inflow of USD5.3bn in the two months to Feb 12 on the back of a net inflow of USD2.0bn in Jan 12. Domestic participants remain net sellers however, withdrawing USD0.45bn in Feb 12.

Portfolio analysis by sector as at 29 February 2012

Sector	No. of Companies	% of Portfolio
Financials	9	26.6%
Industrials	7	17.2%
Consumer Discretionary	3	8.3%
Materials	5	8.3%
Health Care	4	7.7%
IT	3	5.6%
Energy	2	5.6%
Consumer Staples	2	4.3%
Utilities	1	3.4%
Total Equity Investment	36	87.0%
Net Cash		13.0%
Total Portfolio		100.0%

Top 10 holdings as at 29 February 2012

Holding	Sector	% of Portfolio
Federal Bank	Financials	3.9%
Jain Irrigation	Industrials	3.9%
Manappuram Finance	Financials	3.8%
CESC Ltd	Utilities	3.4%
Prime Focus	Consumer Discretionary	3.4%
Indian Bank	Financials	3.3%
Cairn India	Energy	3.3%
KPIT	IT	3.3%
Dish TV	Consumer Discretionary	3.2%
IDFC	Financials	3.1%

Portfolio analysis by market capitalisation size as at 29 February 2012

Market capitalisation size	No. of Companies		% of Portfolio
Small Cap (M/Cap <INR 15bn)		5	10.9%
Mid Cap (INR 15bn <M/Cap<INR 100bn)		20	49.8%
Large Cap (M/Cap > INR 100bn)		10	26.3%
Unlisted		1	0.0%
Total Equity Investment		36	87.0%
Net Cash			13.0%
Total Portfolio			100.0%

 

 

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