RNS Announcement

11:59: Net Asset Value

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%