Brand Value smallcase

Made of companies that new India is embracing. This smallcase has given the past 1 year returns of 26.25%, with a CAGR of 26.34%.

Why should you invest in this smallcase?

India is likely to be the third-largest consumer market in the world by 2030.

•Spending habits and consumption patterns have changed with the increased disposable income in the hands of millennials

•India’s aspirational class is huge and its total consumption is also very high

•This change in consumption patterns will increase demand across sectors like food & beverages, clothing & footwear, household goods, healthcare and leisure facilities

•Companies with strong brands will benefit from such consumption

•A brand is usually a name that consumers emotionally associated to, which creates a moat for the company

This smallcase consists of companies that have been able to leverage their brand power into an outstanding financial track record over the years.

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How is this smallcase built?

Non-model based smallcases like Brand Value are based on themes like macro trends, current events, economic & political developments and policy announcements. The generic process followed to build these smallcases is:

1.Defining the universe

All publicly traded companies on the National Stock Exchange of India, covering 90% market capitalization, are included in the universe

2.Stock screening

•Proprietary liquidity filters are applied to remove ill-liquid stocks from the universe

•A special check is applied to remove stocks, where a significant part of the promoter holdings are pledged, to define the investable universe

•All stocks in the investable universes, belonging to the selected sectors are checked individually to ensure perfect theme fit

•Final stocks are selected on the basis of combined rank calculated using various parameters like valuations, market share growth, earnings growth, profitability, earnings quality, intrinsic value & institutional holdings

3.Research

The smallcase research team does an in-depth research, along with internal presentations and decides the criteria to be used for stock screening

4.Weighting

Top points considered while assigning weights to stocks in the smallcase

•Revenue derived/expected from smallcase theme-related business activities

•Market capitalization of the company

•Future estimates and corporate governance record of the company