Net Asset Value(s)

RNS Number : 6851B

India Capital Growth Fund Limited

06 March 2014

 

6 March 2014

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

Net Asset Value statement as at 28 February 2014

Net Asset Value

The Company announces its Net Asset Value per share as at 28 February 2014 was 45.92 pence.

In February the Net Asset Value (NAV) was up 2.8% in Sterling terms, whilst the BSE Mid Cap Index was up 2.4%, delivering an outperformance against the notional benchmark of 0.4%. Against Ocean Dial's Composite Index, ICGF outperformed by 0.4%. In local currency terms, the NAV increased 3.4% for the month.

Portfolio update

Positive contributors to the portfolio's performance came from Voltas (up 25.7%), Motherson Sumi (up 13.5%) and Lupin (up 12.9%). Negative attribution came from Jyothy Labs (down 10.3%), Idea (down 10.2%) and Indian Bank (down 11.6%).

Market and economic update

Equity markets bounced back in February with both the Sensex and the Mid Cap Index up over 3% in local currency terms, supported by opinion polls predicting an improved performance by the BJP led NDA coalition in the forthcoming national elections. Foreign Institutional Investors invested US$229m in equities over the month while domestic mutual funds were net sellers. The Rupee (INR) held up well in the month appreciating by 0.7% against the US$ and depreciating by 0.6% against Sterling.

The Finance Minister of India presented an interim budget with a revised fiscal deficit estimate of 4.6% of GDP; lower than the budgeted estimate of 4.8%, achieved mainly due to cuts in planned expenditure. In an effort to boost the economy the budget also cut indirect taxes on cars and mobile phones.

India's GDP expanded 4.7% in Q3FY14 largely in line with consensus expectations. The growth was mainly driven by financial services, which expanded 12.5%, primarily as a result of a short term scheme to mobilise overseas deposits from non-resident Indians. Manufacturing contracted with output shrinking to 1.9%. The Government's target of 4.9% GDP growth for the full year FY14 looks challenging as the Q4FY14 growth could be impacted by cuts in planned expenditure to manage the fiscal deficit. However on the positive, CPI and WPI inflation for the month of January was 8.8% and 5.1%, continuing its fall helped mainly by a correction in vegetable prices.

The Q3FY14 results announced by Indian companies were mainly in line with estimates. Export oriented sectors like IT and Healthcare continued to report double digit growth whereas the FMCG sector slowed down and Utilities and Financials reported a decline in profits indicating stress in these sectors.

Portfolio analysis by sector as at 28 February 2014
Sector	No. of Companies	% of Portfolio
Financials	8	20.6%
Industrials	7	18.0%
IT	5	14.4%
Healthcare	3	11.6%
Consumer Staples	4	11.6%
Consumer Discretionary	3	6.8%
Materials	3	6.0%
Energy	2	4.4%
Telecommunications	1	2.2%
Total Equity Investment	36	95.6%
Net Cash		4.4%
Total Portfolio	36	100.0%
Top 20 holdings as at 28 February 2014
Holding	Sector	% of Portfolio
KPIT Cummins Infosystems	IT	5.4%
Jyothy Laboratories	Consumer Staples	5.1%
Federal Bank	Financials	4.0%
NIIT Technologies	IT	3.9%
Tech Mahindra	IT	3.9%
Lupin	Healthcare	3.9%
Divi's Laboratories	Healthcare	3.9%
IPCA Laboratories	Healthcare	3.8%
Kajaria Ceramics	Industrials	3.7%
Motherson Sumi Systems	Consumer Discretionary	3.7%
Dewan Housing	Financials	3.6%
Voltas	Industrials	3.3%
Jammu & Kashmir Bank	Financials	3.3%
Eicher Motors	Industrials	3.2%
Emami	Consumer Staples	3.1%
Dish TV India	Consumer Discretionary	2.9%
Sobha Developers	Financials	2.9%
Larsen & Toubro	Industrials	2.7%
Indusind Bank	Financials	2.5%
PI Industries	Materials	2.5%
Portfolio analysis by market capitalisation size as 28 February 2014
Market capitalisation size	No. of Companies	% of Portfolio
Small Cap (M/Cap <INR15bn)	1	0.4%
Mid Cap (INR15bn <M/Cap<INR100bn)	21	55.7%
Large Cap (M/Cap > INR100bn)	13	39.5%
Unlisted	1	0.0%
Total Equity Investment	36	95.6%
Net Cash		4.4%
Total Portfolio	36	100.0%

 

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