Net Asset Value

RNS Number : 2350C

India Capital Growth Fund Limited

06 February 2020

 

6 February 2020

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

Net Asset Value statement at 31 January 2020

Net Asset Value

The Company announces its Net Asset Value per share as at 31 January 2020 was 89.68 pence.

In January the Net Asset Value (NAV) was up 1.3% in Sterling terms, whilst the BSE MidCap TR Index was up 3.1%, delivering an under performance against the notional benchmark of 1.8%. In local currency terms, the NAV was up 1.5% for the month.

Portfolio update

Positive contribution to the portfolio's performance was driven by Motherson Sumi Systems (up 13.1%), City Union Bank (up 4.1%) and Balkrishna Industries (up 6.9%). The negative contribution mainly stemmed from Jyothy Laboratories (down 17.9%), Yes Bank (down 31.3%) and Welspun India (down 9.1%).

Market and economic update

The BSE MidCap Index outperformed the BSE Sensex by some margin with the former up by 3.3% and the latter down by 1.3% (in Indian Rupees). Sentiment appeared to improve with foreign institutional investors buying US$1.4bn of equities and domestic institutions similarly purchasing US$313m for the month on a net basis. The Indian Rupee was unchanged against the US Dollar and depreciated 0.2% against the Pound Sterling.

Indian companies began announcing results for the quarter ending 31 December with the majority of companies so far reporting in line with (lower) expectations. Private sector banks continue to gain market share however concerns about loan growth and asset quality in retail banks may be emerging. Public sector banks saw some slippages in asset quality with the largest accounts having already been recognised; their recoveries going forwards hold key to a revival in sentiment. Consumer Staples and Consumer Discretionary companies continued to see slowdown in volume growth with rural India growing at half the pace of its urban counterpart. Cement companies, despite benefitting from steep declines in raw material prices, were impacted by lower volume and price realisation. On 1 February, the Government announced its Union Budget for 2020 which focused on the Government's long term management of the fiscal deficit. Please visit www.indiacapitalgrowth.com for further details.

Portfolio analysis by sector as at 31 January 2020 Sector No. of Companies % of Portfolio Materials 7 23.5% Financials 6 23.2% Consumer Staples 4 15.5% Consumer Discretionary 5 12.0% Industrials 4 8.4% Health Care 3 7.0% Information Technology 2 5.3% Real Estate 1 0.1% Communication Services 0 0.0% Energy 0 0.0% Utilities 0 0.0% Total Equity Investment 32 95.0% Net Cash 5.0% Total Portfolio 32 100.0% Top 20 holdings as at 31 January 2020 Holding Sector % of Portfolio Federal Bank Financials 7.2% PI Industries Materials 5.2% Berger Paints India Materials 4.9% DCB Bank Financials 4.9% Tech Mahindra Information Technology 4.6% City Union Bank Financials 4.6% Bajaj Consumer Care Consumer Discretionary 4.3% Jyothy Laboratories Consumer Staples 4.1% Divi's Laboratories Health Care 3.7% Motherson Sumi Systems Consumer Discretionary 3.6% Emami Consumer Staples 3.6% Radico Khaitan Consumer Staples 3.4% Balkrishna Industries Consumer Discretionary 3.4% JK Lakshmi Cement Materials 3.3% Kajaria Ceramics Industrials 3.3% Finolex Cables Industrials 3.0% IDFC Bank Financials 3.0% The Ramco Cements Materials 2.7% Exide Industries Consumer Discretionary 2.5% Indusind Bank Financials 2.5% Portfolio analysis by market capitalisation size as 31 January 2020 Market capitalisation size No. of Companies % of Portfolio Small Cap (M/Cap < US$2bn) 19 45.0% Mid Cap (US$2bn < M/Cap < US$7bn) 9 34.4% Large Cap (M/Cap > US$7bn) 4 15.7% Total Equity Investment 32 95.0% Net Cash 5.0% Total Portfolio 32 100.0%

 

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