Net Asset Value(s)

RNS Number : 0132K

India Capital Growth Fund Limited

06 April 2018

 

6 April 2018

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

Net Asset Value statement at 31 March 2018

Net Asset Value

The Company announces its Net Asset Value per share as at 31 March 2018 was 107.50 pence.

In the month the Net Asset Value (NAV) was down 5.3% in Sterling terms, whilst the BSE Mid Cap TR Index was down 5.5%, delivering an out performance against the notional benchmark of 0.2%. In local currency terms, the NAV was down 3.4% for the month.

Portfolio update

Positive attribution to the portfolio's performance came from Jyothy Labs (up 15.3%), Indusind Bank (up 6.9%) and Exide Industries (up 7.4%). Negative attribution came from Dewan Housing Finance (down 6.6%), Skipper (down 12.0%) and BLS International (down 32.2%).

Market and economic update

India's equity markets continued to correct, with both the BSE Sensex and the BSE Mid Cap TR Index down 3.6%. Weakness came on the back of a broader equity "sell off" as the United States Federal Reserve turned more hawkish and the Trump administration slapped import tariffs on China, raising concerns of global trade war. In addition, a rising current account deficit and recent losses by the BJP in local elections added to the anxieties. Foreign Institutions were net buyers (US$2bn for the month), whilst domestic institutions were net buyers (US$1bn for the month). India's Rupee remained unchanged against the US Dollar whilst depreciating 2.0% against UK Sterling.

India's quarterly current account deficit (CAD) widened to 2.0% of GDP in Q4CY17 (October to December) compared to 1.4% in the same quarter last year. This was led by increases in imports, particularly oil, prices of which continued to rise. Export growth remained weak. Consumer price inflation slowed to 4.4% in February from 5.1% in January, as food prices moderated. Skymet, a private weather forecasting agency in India, announced that monsoon rains are expected to be average over the course of 2018.

On the political front, one of the BJP's (ruling party) key allies, the TDP (Telugu Desam Party), pulled out of the National Democratic Alliance over the issue of granting "special status" to the state of Andhra Pradesh. In recent local elections, the BJP lost three seats in the Lok Sabha (lower house), two from the Uttar Pradesh and one from Bihar. Although these results have no implication on the overall strength of the Government, they will affect sentiment particularly with the General Election approaching.

Portfolio analysis by sector as at 31 March 2018
Sector	No. of Companies	% of Portfolio
Financials	8	24.0%
Materials	8	21.0%
Consumer Discretionary	8	17.3%
Consumer Staples	4	9.9%
Industrials	4	9.4%
IT	2	8.5%
Real Estate	2	3.0%
Healthcare	2	3.3%
Total Equity Investment	38	96.3%
Net Cash		3.7%
Total Portfolio	38	100.0%
Top 20 holdings as at 31 March 2018
Holding	Sector	% of Portfolio
Dewan Housing Finance	Financials	5.3%
NIIT Technologies	IT	4.8%
Ramkrishna Forgings	Materials	4.2%
Motherson Sumi Systems	Consumer Discretionary	4.1%
Federal Bank	Financials	4.0%
Tech Mahindra	IT	3.7%
Jyothy Laboratories	Consumer Staples	3.7%
City Union Bank	Financials	3.2%
Indusind Bank	Financials	3.1%
Finolex Cables	Industrials	3.0%
Balkrishna Industries	Consumer Discretionary	2.9%
Kajaria Ceramics	Industrials	2.8%
Sobha Developers	Real Estate	2.8%
Capital First	Financials	2.8%
Sagar Cements	Materials	2.7%
PI Industries	Materials	2.7%
The Ramco Cements	Materials	2.6%
Skipper	Materials	2.5%
Exide Industries	Consumer Discretionary	2.4%
Divi's Laboratories	Healthcare	2.4%
Portfolio analysis by market capitalisation size as 31 March 2018
Market capitalisation size	No. of Companies	% of Portfolio
Small Cap (M/Cap < US$2bn)	25	57.7%
Mid Cap (US$2bn < M/Cap < US$7bn)	9	25.8%
Large Cap (M/Cap > US$7bn)	4	12.8%
Total Equity Investment	38	96.3%
Net Cash		3.7%
Total Portfolio	38	100.0%

 

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