Net Asset Value

RNS Number : 5847Y

India Capital Growth Fund Limited

06 December 2017

 

6 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 1.2% in Sterling terms, whilst the BSE Mid Cap TR Index was up 0.6%, delivering an out performance against the notional benchmark of 0.6%. In local currency terms, the NAV was up 2.6% 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%

 

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