Net Asset Value(s)

RNS Number : 3581N

India Capital Growth Fund Limited

08 May 2018

 

8 May 2018

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

Net Asset Value statement at 30 April 2018

Net Asset Value

The Company announces its Net Asset Value (NAV) per share as at 30 April 2018 was 116.95 pence.

In April the NAV was up 8.8% in Sterling terms, whilst the BSE Mid Cap TR Index was up 5.9%, delivering an outperformance against the notional benchmark of 2.9%. In local currency terms, the NAV was up 9.5% for the month.

Portfolio update

Positive attribution to the portfolio's performance came from NIIT Tech (up 34.3%), Dewan Housing (up 25.6%) and Ramkrishna Forgings (up 19.0%). Negative attribution came from Jyothy Labs (down 8.3%), JK Lakshmi Cement (down 11.4%) and Kajaria Ceramics (down 4.6%).

Market and economic update

India's equity markets recovered strongly in April with main board stocks rising 6.7%, whilst mid and small-cap peers also sustained, rallying 6.6%. As well as recovering some lost ground over the broader emerging markets asset class, both indices are now within touching distance of this year's highs. Foreign investors took the opportunity to lighten their exposure to Indian equities with net outflow of US$943m, more than offset by local investors (individuals rather than institutional in the main) who ploughed another US$1.3bn into equities.

In the month the Rupee weakened 0.7% against Sterling and 2.3% against a resurgent US Dollar. Encouragingly, there are signs that economic activity is perking up. Nominal GDP growth is expanding, with all sectors contributing; industrial production in particular is showing an uptrend and capacity utilisation levels are gradually tightening. Inflation is easing supported by lower food prices, though the Reserve Bank of India is signalling "upside risk" as crude oil prices continues to rally. In April revenues originating from the Goods and Services Tax (GST) crossed one trillion Rupees (US$15bn) for the first time, buoyed by the introduction of the E-Way bill (an electronic permit for shipping goods interstate), easing concerns on the fiscal side.

Karnataka is polling for State elections in early May with a close outcome between the incumbent Congress Party and the BJP. The outcome is likely to set the political tone for the next few months. 10-year Government bond yields are back at 7.7% as the market frets over fiscal laxity ahead of the 2019 General Election and the rising price of crude oil. Monsoon rain is expected to be in line with long term averages.

Portfolio analysis by sector as at 30 April 2018
Sector	No. of Companies	% of Portfolio
Financials	8	24.3%
Materials	8	20.1%
Consumer Discretionary	8	17.6%
Consumer Staples	4	9.5%
Industrials	4	9.1%
IT	2	8.6%
Real Estate	2	3.0%
Healthcare	2	3.3%
Total Equity Investment	38	95.5%
Net Cash		4.5%
Total Portfolio	38	100.0%
Top 20 holdings as at 30 April 2018
Holding	Sector	% of Portfolio
Dewan Housing Finance	Financials	6.0%
NIIT Technologies	IT	5.0%
Ramkrishna Forgings	Materials	4.5%
Motherson Sumi Systems	Consumer Discretionary	4.3%
Federal Bank	Financials	4.0%
Tech Mahindra	IT	3.6%
Balkrishna Industries	Consumer Discretionary	3.2%
City Union Bank	Financials	3.1%
Jyothy Laboratories	Consumer Staples	3.1%
Indusind Bank	Financials	3.0%
Finolex Cables	Industrials	2.8%
Sobha Developers	Real Estate	2.8%
Sagar Cements	Materials	2.7%
Radico Khaitan	Consumer Staples	2.7%
Capital First	Financials	2.6%
Exide Industries	Consumer Discretionary	2.5%
Kajaria Ceramics	Industrials	2.5%
PI Industries	Materials	2.4%
Divi's Laboratories	Healthcare	2.4%
Skipper	Materials	2.3%
Portfolio analysis by market capitalisation size as 30 April 2018
Market capitalisation size	No. of Companies	% of Portfolio
Small Cap (M/Cap < US$2bn)	24	54.4%
Mid Cap (US$2bn < M/Cap < US$7bn)	10	28.2%
Large Cap (M/Cap > US$7bn)	4	12.9%
Total Equity Investment	38	95.5%
Net Cash		4.5%
Total Portfolio	38	100.0%

 

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