India Capital Growth Fund Limited Net Asset Value Daily Estimate (8982V)

TIDMIGC

RNS Number : 8982V

India Capital Growth Fund Limited

08 November 2017

8 November 2017

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

Net Asset Value statement at 31 October 2017

Net Asset Value

The Company announces its Net Asset Value per share as at 31 October 2017 was 121.46 pence.

The Net Asset Value (NAV) was up 10.7% in Sterling terms, whilst the BSE Mid Cap TR Index was up 10.1%, delivering an out performance against the notional benchmark of 0.6%. In local currency terms, the NAV was up 8.0% for the month.

Portfolio update

Positive attribution to the portfolio's performance came from Dewan Housing Finance (up 16.9%), Ramkrishna Forgings (up 27.0%), Sobha Developers (up 30.9%) and NIIT Technologies (up 24.8%). Negative attribution came from Yes Bank (down 10.2%), Manpasand Beverages (down 6.2%) and Kajaria Ceramics (down 4.0%).

Market and economic update

India's equity markets rebounded strongly in October on the back of the Government's plan to recapitalise India's state owned banks. The BSE Sensex was up 6.2%, whilst the BSE Mid Cap TR Index was up 7.5% supported by Foreign Institutions, who were net buyers (US$296m) and Domestic Institutions who were also significant net buyers (US$1.5bn) for the month. On the currency front, INR appreciated 0.9% against USD and 2.4% against GBP in October.

The key announcement this month was the Government's US$33bn recapitalisation plan for India's state owned banks. The intention is to provide additional capital for the banks to further provision for bad loans, thereby boosting the credit cycle resolution process, and kick starting credit growth which has remained sluggish, largely due to the banks' weak capital position. Of the total commitment, US$21bn will come from the sale of recapitalisation bonds by the Government, the remaining US$12bn will be sourced via budgetary allocation and fundraising from equity markets. The Government also announced the "Mega Road Project", "Bharatmala", involving construction of more than 83,000km of roads, investing US$107bn over the next five years. This provides a medium term road map for the highway sector and is expected to create employment.

Elsewhere, India jumped into the Top 100 of the World Bank's 'Ease of Doing Business' rankings for the first time. The 2018 Report saw it move up about 30 places, driven by reforms in access to credit, power supplies and protection of minority investors.

Indian companies have begun reporting Q2 earnings which so far have been mainly in line with expectations. The telecom and cement sectors have outperformed expectations while the consumer staples, consumer discretionary, healthcare, IT and financials sectors have all reported in line, although asset quality remains weak.

 
 Portfolio analysis by sector as at 31 October 
  2017 
 
 Sector                        No. of Companies         % of Portfolio 
 Financials                    8                                 26.6% 
 Materials                     9                                 21.2% 
 Consumer Discretionary        8                                 16.9% 
 Industrials                   4                                  9.4% 
 Consumer Staples              4                                  9.3% 
 IT                            2                                  6.2% 
 Real Estate                   2                                  3.0% 
 Healthcare                    2                                  3.2% 
 Total Equity Investment       39                                95.9% 
 Net Cash                                                         4.1% 
 Total Portfolio               39                               100.0% 
 
 Top 20 holdings as at 31 October 2017 
 
 Holding                       Sector                   % of Portfolio 
 Dewan Housing Finance         Financials                         6.9% 
 Federal Bank                  Financials                         5.2% 
 Motherson Sumi Systems        Consumer Discretionary             4.6% 
 Ramkrishna Forgings           Materials                          4.6% 
 NIIT Technologies             IT                                 3.5% 
 Jyothy Laboratories           Consumer Staples                   3.5% 
 Yes Bank                      Financials                         3.4% 
 Kajaria Ceramics              Industrials                        3.2% 
 Finolex Cables                Industrials                        2.9% 
 City Union Bank               Financials                         2.9% 
 Sobha Developers              Real Estate                        2.8% 
 Skipper                       Materials                          2.7% 
 Tech Mahindra                 IT                                 2.7% 
 Indusind Bank                 Financials                         2.6% 
 The Ramco Cements             Materials                          2.5% 
 Sagar Cements                 Materials                          2.4% 
 PI Industries                 Materials                          2.4% 
 Manpasand Beverages           Consumer Staples                   2.3% 
 Berger Paints India           Materials                          2.2% 
 Balkrishna Industries         Consumer Discretionary             2.2% 
 
 Portfolio analysis by market capitalisation 
  size as 31 October 2017 
 
 Market capitalisation         No. of Companies         % of Portfolio 
  size 
 Small Cap (M/Cap < US$2bn)    26                                55.4% 
 Mid Cap (US$2bn < M/Cap 
  < US$7bn)                    9                                 27.2% 
 Large Cap (M/Cap > US$7bn)    4                                 13.3% 
 Total Equity Investment       39                                95.9% 
 Net Cash                                                         4.1% 
 Total Portfolio               39                               100.0% 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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November 08, 2017 04:14 ET (09:14 GMT)