Net Asset Value(s)

RNS Number : 0544V

India Capital Growth Fund Limited

04 April 2019

 

04 April 2019

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

Net Asset Value statement at 31 March 2019

Net Asset Value

The Company announces its Net Asset Value per share as at 31 March 2019 was 104.79 pence.

In March the Net Asset Value (NAV) was up 14.0% in Sterling terms, whilst the BSE Mid Cap TR Index was up 13.2%, delivering an outperformance against the notional benchmark of 0.8%. In local currency terms, the NAV was up 8.9% for the month.

Portfolio update

Positive contribution to the portfolio's performance came from IDFC Bank (up 24.0%), Jammu & Kashmir Bank (up 39.5%) and Federal Bank (up 15.0%). Negative contribution mainly stemmed from Tech Mahindra (down 6.5%), Motherson Sumi Systems (down 7.9%) and Neuland Laboratories (down 11.3%).

Market and economic update

Indian equity markets saw a sharp and broad based rally in March with the BSE Sensex and BSE MidcapTR indices up 7.8% and 8.2% respectively (in Indian Rupees). Latest opinion polls indicate an increased likelihood of the incumbent BJP government retaining power and expectations of a 50bps cut in policy rates in the short term grew as inflation continues to remain below the Reserve Bank of India's 4% target. The Indian Rupee appreciated 2.2% against the US Dollar and 4.5% against Pound Sterling on the back of a narrowing trade deficit in February. It fell to US$9.6bn from US$14.7bn as exports grew 2.4% while imports were down 5.4%. Foreign institutional investors were net buyers (US$4.8bn) for the month while domestic institutions were net sellers (US$2.0bn).

Goods and Services Tax collections for March were US$15.4bn, up 16% and the highest recorded since the tax's inception. This was particularly strong given that March collections are mostly for February activity, which has 10% fewer days, indicating a potential expansion in manufacturing and consumption, alongside the government's effort to plug collection leakages. Should momentum build on this front, it will help ease pressure on the government's FY20 fiscal deficit target of 3.4%. The fall in oil prices from their peak afforded the current account deficit some breathing room as it declined to 2.5% of GDP in December from 2.9% of GDP in the September quarter.

Portfolio analysis by sector as at 31 March 2019
Sector	No. of Companies	% of Portfolio
Financials	8	23.9%
Materials	8	18.9%
Consumer Discretionary	5	12.2%
Consumer Staples	4	11.1%
Information Technology	3	9.8%
Industrials	4	8.6%
Health Care	3	7.5%
Real Estate	2	3.1%
Communication Services	0	0.0%
Energy	0	0.0%
Utilities	0	0.0%
Total Equity Investment	37	95.0%
Net Cash		5.0%
Total Portfolio	37	100.0%
Top 20 holdings as at 31 March 2019
Holding	Sector	% of Portfolio
Tech Mahindra	Information Technology	4.7%
Federal Bank	Financials	4.5%
City Union Bank	Financials	4.4%
NIIT Technologies	Information Technology	4.0%
PI Industries	Materials	3.7%
Kajaria Ceramics	Industrials	3.7%
IDFC Bank	Financials	3.6%
Jyothy Laboratories	Consumer Staples	3.6%
Divi's Laboratories	Health Care	3.4%
Ramkrishna Forgings	Materials	3.3%
Indusind Bank	Financials	3.2%
Motherson Sumi Systems	Consumer Discretionary	3.1%
Aurobindo Pharma	Health Care	3.1%
Berger Paints India	Materials	3.0%
Sobha Developers	Real Estate	3.0%
Yes Bank	Financials	2.9%
Radico Khaitan	Consumer Staples	2.9%
Balkrishna Industries	Consumer Discretionary	2.8%
Welspun India	Consumer Discretionary	2.8%
Emami	Consumer Staples	2.8%
Portfolio analysis by market capitalisation size as 31 March 2019
Market capitalisation size	No. of Companies	% of Portfolio
Small Cap (M/Cap < US$2bn)	22	45.1%
Mid Cap (US$2bn < M/Cap < US$7bn)	12	39.1%
Large Cap (M/Cap > US$7bn)	3	10.8%
Total Equity Investment	37	95.0%
Net Cash		5.0%
Total Portfolio	37	100.0%

 

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