Net Asset Value

RNS Number : 1685F

India Capital Growth Fund Limited

05 March 2020

 

5 March 2020

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

Net Asset Value statement at 28 February 2020

Net Asset Value

The Company announces its Net Asset Value per share as at 28 February 2020 was 83.06 pence.

In February the Net Asset Value (NAV) was down 7.4% in Sterling terms, whilst the BSE MidCap TR Index was down 4.7%, delivering an under performance against the notional benchmark of 2.7%. In local currency terms, the NAV was down 8.0% for the month.

Portfolio update

Positive contribution to the portfolio's performance was driven by Divi's Laboratories (up 8.7%), Balkrishna Industries (up 3.8%) and Radico Khaitan (up 3.5%). The negative contribution mainly stemmed from Jyothy Laboratories (down 20.3%), Motherson Sumi Systems (down 22.5%) and Bajaj Consumer Care (down 14.2%).

Market and economic update

Indian Equity markets corrected in February with the S&P BSE Sensex down 5.9% while the BSE Midcap Total Return was down 5.3% (in Indian Rupees). Both foreign and domestic institutional investors were net buyers to the tune of US$1.4bn and US$313m respectively. The Indian Rupee depreciated 1.1% against the US Dollar and appreciated 0.7% against the Pound Sterling.

Real GDP growth moderated to 4.7% in 3QFY20 as against an upward revised print of 5.1% in 2QFY20 led by a contraction in manufacturing. On a positive note, private consumption saw a small uptick while government consumption growth contributed positively (albeit at a lower rate). Gross fixed capital formation was down 5.2%, and both export and import growth contracted (the latter at a sharper pace). The government of India now expects FY2020 GDP growth at 5%.

At the time of writing, India has 28 confirmed cases of Covid-19. On the supply side, India's key imports from China suggest that pharmaceuticals, chemicals and electronic companies could see supply chains being impacted if there is a prolonged disruption in production activity in China beyond March. On the other hand, any long term shift in global supply away from China could see some beneficiaries in India, like garment and textile exporters, speciality chemicals and Active Pharmaceutical Ingredient manufacturing.

Portfolio analysis by sector as at 28 February 2020 Sector No. of Companies % of Portfolio Financials 5 22.2% Materials 7 21.3% Consumer Staples 5 15.2% Consumer Discretionary 4 11.7% Industrials 4 10.7% Health Care 3 7.1% Information Technology 2 5.4% Utilities 1 3.0% Real Estate 1 0.1% Communication Services 0 0.0% Energy 0 0.0% Total Equity Investment 32 96.6% Net Cash 3.4% Total Portfolio 32 100.0% Top 20 holdings as at 28 February 2020 Holding Sector % of Portfolio Federal Bank Financials 7.4% PI Industries Materials 5.6% DCB Bank Financials 4.8% Tech Mahindra Information Technology 4.7% City Union Bank Financials 4.7% Divi's Laboratories Health Care 4.4% Berger Paints India Materials 4.3% Bajaj Consumer Care Consumer Staples 4.0% Radico Khaitan Consumer Staples 3.9% Balkrishna Industries Consumer Discretionary 3.8% Kajaria Ceramics Industrials 3.7% Emami Consumer Staples 3.6% Jyothy Laboratories Consumer Staples 3.5% JK Lakshmi Cement Materials 3.1% Motherson Sumi Systems Consumer Discretionary 3.1% Gujarat Gas Utilities 3.0% IDFC Bank Financials 2.9% The Ramco Cements Materials 2.8% Finolex Cables Industrials 2.7% Welspun India Consumer Discretionary 2.6% Portfolio analysis by market capitalisation size as 28 February 2020 Market capitalisation size No. of Companies % of Portfolio Small Cap (M/Cap < US$2bn) 19 46.1% Mid Cap (US$2bn < M/Cap < US$7bn) 9 34.8% Large Cap (M/Cap > US$7bn) 4 15.7% Total Equity Investment 32 96.6% Net Cash 3.4% Total Portfolio 32 100.0%

 

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