Net Asset Value

RNS Number : 3436K
India Capital Growth Fund Limited
06 July 2017
 

6 July 2017

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

Net Asset Value statement at 30 June 2017

Net Asset Value

The Company announces its Net Asset Value per share as at 30 June 2017 was 110.61       pence.

In June the Net Asset Value (NAV) was down 1.0% in Sterling terms, whilst the BSE Mid Cap TR Index was down 1.7%, delivering out performance against the notional benchmark of       0.7%. In local currency terms, the NAV was up 0.9% for the month.

Portfolio update

A summary of the Top 20 holdings is provided below.

Market and Economic Update

Following the Reserve Bank of India's decision to stand pat on rates, consumer price inflation fell to 2.2% for May, the lowest level reported in this series; food and fuel prices drove the number lower.

The imminent onset of the Goods & Services Tax (GST), combined with the current outlook for favourable monsoon rainfall and the ongoing positive base effect, augurs well for some loosening of monetary policy. Implementation of GST took place on July 1st with the Government confident of a smooth transition period and no widespread tension reported as yet. Some leeway on filing of returns and a "penalty amnesty" for two months has been granted. 

Elsewhere the "core sector" (making up 40% of the index of industrial production (IIP)), grew 2.8% in April versus 5.2% growth in May last year; both coal and fertiliser volumes contracted. The ongoing slowdown in private sector investment plus uncertainty surrounding GST suggests a turnaround here is not imminent. The reported trade deficit for May rose to a 30 month high as imports of gold and oil contributed to the incremental uptick, as export growth softened. This spike in gold imports maybe a temporary factor connected to GST, but must be watched. A weaker trade balance may halt further strength in India's currency.

Several States announced a "farm loan waiver" whereby farmers' debts are transferred to State budgets for political gain, but fiscal cost. In other news, the Cabinet approved the privatisation of loss making Air India by March 2018 and reportedly, CIDB Holdings, a state-owned company in Malaysia, will bid to manage six Indian railway stations. This bidding is among the first of the 23 stations to be privatised, as confirmed by the Government last month. Successful bidders will be given land redevelopment rights for 45 years and will be required to modernise the stations, build elevators and other passenger facilities. These six have an estimated value of US$780m.

Prime Minister Modi met with President Trump and discussed America's wish to sell more natural gas to India on long term contracts, as well as removing current barriers of US exports to India.

 

Portfolio analysis by sector as at 30 June 2017




Sector

No. of Companies

% of Portfolio

Financials

8

27.4%

Materials

9

21.1%

Consumer Discretionary

6

16.3%

Consumer Staples

5

10.3%

Industrials

4

9.0%

IT

2

5.7%

Healthcare

2

3.5%

Real Estate

2

3.5%

Total Equity Investment

38

97.0%

Net Cash


3.0%

Total Portfolio

38

100.0%




Top 20 holdings as at 30 June 2017




Holding

Sector

% of Portfolio

Dewan Housing

Financials

5.6%

Federal Bank

Financials

5.4%

Motherson Sumi Systems

Consumer Discretionary

4.3%

Yes Bank

Financials

4.2%

Jyothy Laboratories

Consumer Staples

3.5%

Kajaria Ceramics

Industrials

3.5%

Ramkrishna Forgings

Materials

3.5%

NIIT Technologies

IT

3.4%

City Union Bank

Financials

3.2%

Sobha Developers

Real Estate

3.2%

Indusind Bank

Financials

3.1%

Welspun India

Consumer Discretionary

2.9%

PI Industries

Materials

2.7%

The Ramco Cements

Materials

2.7%

Max Financial Services

Financials

2.6%

Sagar Cements

Materials

2.6%

Exide Industries

Consumer Discretionary

2.6%

Skipper

Materials

2.5%

Finolex Cables

Industrials

2.4%

Balkrishna Industries

Consumer Discretionary

2.4%




Portfolio analysis by market capitalisation size as 30 June 2017




Market capitalisation size

No. of Companies

% of Portfolio

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

23

52.4%

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

11

34.4%

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

4

10.1%

Total Equity Investment

38

97.0%

Net Cash


3.0%

Total Portfolio

38

100.0%

 

 


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