Strong valuable brands deliver superior shareholder return
BrandZ™ India Top 50 Portfolio outperforms SENSEX
The stock portfolio of the BrandZ™ Top 50 Most Valuable Indian brands increased 10.8 percent in value between August 2014 and August 2016, while over the same 24-month period, India’s SENSEX, a weighted index of 30 stocks on the Bombay Stock Exchange, declined 3.5 percent.
Significantly, the BrandZ™ India Top 50 Portfolio performed well during an extraordinarily volatile period for the Indian stock exchange, which plummeted during 2015 because of global economic concerns and domestic political issues. The Portfolio tracked with SENSEX, but it never declined as severely, and it rebounded more sharply.
This performance by the BrandZ™ India Top 50 Portfolio demonstrates the ability of valuable brands to navigate difficult markets. It proved to be the difference between making money and losing money. In other words, $1,000 invested in 2014 in the BrandZ™ India Top 50 Portfolio would have grown to $1,108. The $1,000 invested in 2014 in the SENSEX stocks would be worth only $965.
The ability to generate superior returns for shareholders is only one of the advantages gained by building valuable brands. High-value brands also help drive sales volume, command premium pricing, and expand market share.