Net Asset Value(s)

RNS Number : 1628S

India Capital Growth Fund Limited

07 March 2019

 

7 March 2019

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

Net Asset Value statement at 28 February 2019

Net Asset Value

The Company announces its Net Asset Value per share as at 28 February 2019 was 91.92 pence.

In February the Net Asset Value (NAV) fell 1.2% in Sterling terms, whilst the BSE Mid Cap Index (Total Return) was down 3.1%, delivering an outperformance against the notional benchmark of 1.9%. In local currency terms, the NAV was up 0.3% for the month.

Portfolio update

Positive contribution to the portfolio's performance came from Tech Mahindra (up 13.4%), Motherson Sumi Systems (up 15.6%) and Yes Bank (up 19.1%). Negative contribution came from Welspun India (down 14.4%), Radico Khaitan (down 11.5%) and Aurobindo Pharma (down 9.6%).

Market and economic update

February was another weak month for Indian equity markets with the BSE Sensex 30 and BSE Mid Cap Index falling 1.1% and 1.6% respectively. Heightened border tension between India and Pakistan, alongside an 8.8% rise in the oil price dominated sentiment. Nevertheless the Rupee appreciated 0.5% against the US Dollar (a stronger Pound led to a 1.6% depreciation against Sterling), with Foreign Institutions turning net buyers of equities to the tune of US$2.4bn for the month, while domestic institutions were net sellers of US$86m.

India's GDP in Q3FY19 (October to December) grew by 6.6% compared to 7.0% in the previous quarter. Slower growth was driven by consumption, services and agriculture, while positives emerged from continued improvement in government investment and exports. Encouragingly, construction exhibited robust growth of 9.6%.

Consumer Price inflation continued to ease hitting a 19 month low of 2.0% in January driven by food and fuel. On the back of a benign inflationary environment the RBI cut rates by 25bps and changed its stance to 'neutral' from 'calibrated tightening'. It revised its inflation projections for 1HFY20 downwards to 3.2-3.4% (earlier 3.8-4.2%). Going forwards further rate cuts could be expected as the RBI's focus shifts to addressing downside risks to growth.

Portfolio analysis by sector as at 28 February 2019
Sector	No. of Companies	% of Portfolio
Financials	8	21.7%
Materials	8	18.8%
Consumer Discretionary	5	12.4%
Information Technology	3	10.8%
Consumer Staples	4	9.3%
Industrials	4	9.1%
Health Care	3	7.8%
Real Estate	2	2.9%
Communication Services	0	0.0%
Energy	0	0.0%
Utilities	0	0.0%
Total Equity Investment	37	92.8%
Net Cash		7.2%
Total Portfolio	37	100.0%
Top 20 holdings as at 28 February 2019
Holding	Sector	% of Portfolio
Tech Mahindra	Information Technology	5.5%
NIIT Technologies	Information Technology	4.3%
Federal Bank	Financials	4.3%
City Union Bank	Financials	4.3%
Kajaria Ceramics	Industrials	4.2%
Jyothy Laboratories	Consumer Staples	3.8%
Motherson Sumi Systems	Consumer Discretionary	3.7%
Divi's Laboratories	Health Care	3.6%
PI Industries	Materials	3.6%
Ramkrishna Forgings	Materials	3.2%
IDFC Bank	Financials	3.2%
Aurobindo Pharma	Health Care	3.1%
Berger Paints India	Materials	3.1%
Indusind Bank	Financials	2.9%
Radico Khaitan	Consumer Staples	2.9%
Sobha Developers	Real Estate	2.7%
Exide Industries	Consumer Discretionary	2.7%
Balkrishna Industries	Consumer Discretionary	2.7%
Yes Bank	Financials	2.7%
Welspun India	Consumer Discretionary	2.6%
Portfolio analysis by market capitalisation size as 28 February 2019
Market capitalisation size	No. of Companies	% of Portfolio
Small Cap (M/Cap < US$2bn)	24	51.7%
Mid Cap (US$2bn < M/Cap < US$7bn)	9	26.4%
Large Cap (M/Cap > US$7bn)	4	14.7%
Total Equity Investment	37	92.8%
Net Cash		7.2%
Total Portfolio	37	100.0%

 

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