Net Asset Value(s)

RNS Number : 5913B

India Capital Growth Fund Limited

04 April 2013

 



4 April 2013

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

Net Asset Value statement as at 31 March 2013

Net Asset Value

The Company announces its Net Asset Value per share as at 31 March 2013 was 49.24 pence.

In March the Net Asset Value (NAV) fell 5.3% in Sterling terms, whilst the BSE Midcap Index was down 3.4%, delivering an underperformance against the notional benchmark of 1.9% in Sterling terms. Against Ocean Dial's Composite Index, the portfolio delivered an underperformance of 2.2%.

Portfolio update

Positive contributors to the portfolio's performance came from Jyothy Laboratories (up 5.2%), Lupin (up 7.5%) and Ipca (up 6.7%). Negative attribution came from Manappuram Finance (down 37.8%), Multi Commodity Exchange (down 27.7%) and Yes Bank (down 9.1%)

Market and economic update

Equity market performance diverged this month as main board stocks were flat over the period supported by FII net equity inflows of USD1.7bn, whilst mid and small cap stocks were down 2.5% and 6.5% respectively. Locals remain deeply concerned about the lack of any signs of an improving macro environment and politics rose to the fore again.

Administrative instability re-emerged as an important coalition partner withdrew support from the government, stoking fears of an early election and further delays to the reform process. We feel this is overdone in the near term. An early election is a possibility but unlikely before year end when the Monsoon and the Festive season are over.

Economic concerns roll on. March saw the release of current account data which showed that the deficit in Q3FY13 worsened beyond expectations to 6.7% of GDP. FII capital inflows remain sufficient to fund this deficit, which is likely to be at its peak, thus INR has remained stable year to date despite such poor numbers. The worry for investors is how INR will react if these inflows do not sustain.

In spite of small upticks in wholesale and consumer inflation this month (due to fuel price increases), the Reserve Bank cut interest rates by a further 0.25% to 7.5%. This, combined with supportive policy from the government, is what kept the foreign investors active and held the main market steady.

Portfolio analysis by sector as at 31 March 2013

Sector	No. of Companies	% of Portfolio
Financials	11	33.5%
Industrials	6	15.6%
Consumer Discretionary	4	13.2%
Consumer Staples	3	10.4%
Health Care	3	9.1%
Energy	3	5.9%
Information Technology	2	3.6%
Telecommunication Services	1	3.0%
Materials	1	1.7%
Total Equity Investment	34	96.0%
Net Cash		4.0%
Total Portfolio		100.0%

Top 10 holdings as at 31 March 2013

Holding	Sector	% of Portfolio
Federal Bank	Financials	5.9%
Jyothy Laboratories	Consumer Staples	5.7%
Yes Bank	Financials	4.4%
Dish TV India	Consumer Discretionary	3.7%
Max India	Industrials	3.6%
Lupin	Health Care	3.6%
KPIT Cummins	IT	3.6%
Jammu & Kashmir Bank	Financials	3.4%
Indusind Bank	Financials	3.4%
Indian Bank	Financials	3.4%

Portfolio analysis by market capitalisation size as at 31 March 2013

Market capitalisation size	No. of Companies	% of Portfolio
Small Cap (M/Cap <INR15bn)	3	6.1%
Mid Cap (INR15bn <M/Cap<INR100bn)	19	57.8%
Large Cap (M/Cap > INR100bn)	11	32.1%
Unlisted	1	0.0%
Total Equity Investment	34	96.0%
Net Cash		4.0%
Total Portfolio		100.0%

 

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