Net Asset Value(s)

RNS Number : 8415Y
India Capital Growth Fund Limited
08 December 2017
 

8 December 2017

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

Net Asset Value statement at 30 November 2017

Net Asset Value

The Company announces its Net Asset Value per share as at 30 November 2017 was 123.09 pence.

In November the Net Asset Value (NAV) was up 1.3% in Sterling terms, whilst the BSE Mid Cap TR Index was up 0.6%, delivering an out performance against the notional benchmark of 0.7%. In local currency terms, the NAV was up 2.8% for the month.

Portfolio update

Positive attribution to the portfolio's performance came from Sobha (up 22.8%), Balkrishna Industries (up 25.9%), Indian Bank (up 24.7%) and Radico Khaitan (up 30.2%). Negative attribution came from Federal Bank (down 9.1%), Dewan Housing (down 4.1%) and Manpasand Beverages (down 10.3%).

Market and economic update

India's equity market performance was mixed this month with the BSE Sensex down 0.2%, whilst the BSE Mid Cap Index was up 2.0%. This was on the back of the reduction of GST rates from 28% to 18% on a large number of items, providing greater benefits to the SME sector and reducing the inflationary impact on consumers. Only 50 items, mostly "demerit" goods & services and luxuries will continue to be taxed at 28%.

In November, Foreign and Domestic Institutions were both net buyers at US$3.0bn and US$1.4bn respectively, whilst INR appreciated 0.4% against USD but fell 1.4% against GBP.

India's third quarter GDP accelerated to 6.3% from 5.7% in the second quarter due to stronger growth in mining and manufacturing as companies built inventories and restored supply chains, following the disruption caused by the introduction of GST. On the expenditure side both private and government consumption expenditure growth fell (owing to the high base effect), whilst gross fixed capital formation growth recovered, supported by ongoing government spending on roads and railways.  

Consumer Price Inflation accelerated in October to 3.6% from 3.3% in September, led mainly by rising food prices. Wholesale Price Inflation also increased to 3.6% from 2.6% on the back of rising crude oil prices. Any further increase could put pressure on India's macro economy, which in turn would pressurise the currency.

Moody upgraded India's government bond rating from positive (Baa3) to stable (Baa2), reaffirming the long-term benefit of recent reforms, whilst India shot up 30 places into the top 100 in the World Bank's "ease of doing business".

 

 

Portfolio analysis by sector as at 30 November 2017




Sector

No. of Companies

% of Portfolio

Financials

8

25.5%

Materials

9

21.2%

Consumer Discretionary

8

17.5%

Industrials

4

10.0%

Consumer Staples

4

9.2%

IT

2

5.9%

Real Estate

2

3.6%

Healthcare

2

3.3%

Total Equity Investment

39

96.2%

Net Cash


3.8%

Total Portfolio

39

100.0%




Top 20 holdings as at 30 November 2017




Holding

Sector

% of Portfolio

Dewan Housing Finance

Financials

6.4%

Federal Bank

Financials

4.6%

Motherson Sumi Systems

Consumer Discretionary

4.5%

Ramkrishna Forgings

Materials

4.4%

Sobha Developers

Real Estate

3.4%

Kajaria Ceramics

Industrials

3.3%

Jyothy Laboratories

Consumer Staples

3.3%

NIIT Technologies

IT

3.3%

Finolex Cables

Industrials

3.1%

Skipper

Materials

3.0%

City Union Bank

Financials

2.9%

Balkrishna Industries

Consumer Discretionary

2.7%

PI Industries

Materials

2.7%

Tech Mahindra

IT

2.7%

Indusind Bank

Financials

2.6%

Yes Bank

Financials

2.6%

Indian Bank

Financials

2.5%

Sagar Cements

Materials

2.4%

The Ramco Cements

Materials

2.4%

Capital First

Financials

2.3%




Portfolio analysis by market capitalisation size as 30 November 2017




Market capitalisation size

No. of Companies

% of Portfolio

Small Cap (M/Cap < US$2bn)

25

54.2%

Mid Cap (US$2bn < M/Cap < US$7bn)

10

29.7%

Large Cap (M/Cap > US$7bn)

4

12.3%

Total Equity Investment

39

96.2%

Net Cash


3.8%

Total Portfolio

39

100.0%

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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