Last checked at 
4 Apr 2019 09:00
04 April 2019
India Capital Growth Fund Limited (the "Company" or "ICGF")
Net Asset Value statement at 31 March 2019
Net Asset Value
The Company announces its Net Asset Value per share as at 31 March 2019 was 104.79 pence.
In March the Net Asset Value (NAV) was up 14.0% in Sterling terms, whilst the BSE Mid Cap TR Index was up 13.2%, delivering an outperformance against the notional benchmark of 0.8%. In local currency terms, the NAV was up 8.9% for the month.
Portfolio update
Positive contribution to the portfolio's performance came from IDFC Bank (up 24.0%), Jammu & Kashmir Bank (up 39.5%) and Federal Bank (up 15.0%). Negative contribution mainly stemmed from Tech Mahindra (down 6.5%), Motherson Sumi Systems (down 7.9%) and Neuland Laboratories (down 11.3%).
Market and economic update
Indian equity markets saw a sharp and broad based rally in March with the BSE Sensex and BSE MidcapTR indices up 7.8% and 8.2% respectively (in Indian Rupees). Latest opinion polls indicate an increased likelihood of the incumbent BJP government retaining power and expectations of a 50bps cut in policy rates in the short term grew as inflation continues to remain below the Reserve Bank of India's 4% target. The Indian Rupee appreciated 2.2% against the US Dollar and 4.5% against Pound Sterling on the back of a narrowing trade deficit in February. It fell to US$9.6bn from US$14.7bn as exports grew 2.4% while imports were down 5.4%. Foreign institutional investors were net buyers (US$4.8bn) for the month while domestic institutions were net sellers (US$2.0bn).
Goods and Services Tax collections for March were US$15.4bn, up 16% and the highest recorded since the tax's inception. This was particularly strong given that March collections are mostly for February activity, which has 10% fewer days, indicating a potential expansion in manufacturing and consumption, alongside the government's effort to plug collection leakages. Should momentum build on this front, it will help ease pressure on the government's FY20 fiscal deficit target of 3.4%. The fall in oil prices from their peak afforded the current account deficit some breathing room as it declined to 2.5% of GDP in December from 2.9% of GDP in the September quarter.
Portfolio analysis by sector as at 31 March 2019 | ||
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Sector | No. of Companies | % of Portfolio |
Financials | 8 | 23.9% |
Materials | 8 | 18.9% |
Consumer Discretionary | 5 | 12.2% |
Consumer Staples | 4 | 11.1% |
Information Technology | 3 | 9.8% |
Industrials | 4 | 8.6% |
Health Care | 3 | 7.5% |
Real Estate | 2 | 3.1% |
Communication Services | 0 | 0.0% |
Energy | 0 | 0.0% |
Utilities | 0 | 0.0% |
Total Equity Investment | 37 | 95.0% |
Net Cash |
| 5.0% |
Total Portfolio | 37 | 100.0% |
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Top 20 holdings as at 31 March 2019 | ||
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Holding | Sector | % of Portfolio |
Tech Mahindra | Information Technology | 4.7% |
Federal Bank | Financials | 4.5% |
City Union Bank | Financials | 4.4% |
NIIT Technologies | Information Technology | 4.0% |
PI Industries | Materials | 3.7% |
Kajaria Ceramics | Industrials | 3.7% |
IDFC Bank | Financials | 3.6% |
Jyothy Laboratories | Consumer Staples | 3.6% |
Divi's Laboratories | Health Care | 3.4% |
Ramkrishna Forgings | Materials | 3.3% |
Indusind Bank | Financials | 3.2% |
Motherson Sumi Systems | Consumer Discretionary | 3.1% |
Aurobindo Pharma | Health Care | 3.1% |
Berger Paints India | Materials | 3.0% |
Sobha Developers | Real Estate | 3.0% |
Yes Bank | Financials | 2.9% |
Radico Khaitan | Consumer Staples | 2.9% |
Balkrishna Industries | Consumer Discretionary | 2.8% |
Welspun India | Consumer Discretionary | 2.8% |
Emami | Consumer Staples | 2.8% |
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Portfolio analysis by market capitalisation size as 31 March 2019 | ||
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Market capitalisation size | No. of Companies | % of Portfolio |
Small Cap (M/Cap < US$2bn) | 22 | 45.1% |
Mid Cap (US$2bn < M/Cap < US$7bn) | 12 | 39.1% |
Large Cap (M/Cap > US$7bn) | 3 | 10.8% |
Total Equity Investment | 37 | 95.0% |
Net Cash |
| 5.0% |
Total Portfolio | 37 | 100.0% |