Reliance Industries Ltd was the biggest wealth creator during the five-year period from 2018 to 2023 while Adani Enterprises Ltd was the top all-round wealth creator, according to a study by Motilal Oswal Financial Services. The study, based on stock market performance of companies, said for the fifth time in succession, Reliance emerged as the largest wealth creator, adding Rs 9,63,800 crore wealth over 2018-23.
It was followed by Tata Consultancy Services (Rs 6,77,400 crore wealth addition), ICICI Bank (Rs 4,15,500 crore), Infosys (Rs 3,61,800 crore) and Bharti Airtel (Rs 2,80,800 crore).
“A low-profile company, Lloyds Metals, has emerged the fastest wealth creator with 2018-23 price CAGR of 79 per cent,” it said. Adani Enterprises Ltd, the flagship incubator firm of the Adani Group, is a close second with a CAGR of 78 per cent.
It said Rs 10 lakh invested in 2018 in the top 10 fastest wealth creators would be worth Rs 1 crore in 2023, a return CAGR of 59 per cent.
Motilal said Capri Global is the most consistent wealth creator, outperforming the BSE Sensex in all the last five years with the highest price CAGR of 50 per cent.
Defining ‘all-round wealth creators’ as one which is the biggest, fastest and consistent stock market performer, the study said Adani Enterprises has emerged as the best all-round wealth creator. It is the 9th biggest wealth creator, second fastest and fifth most consistent.
It is followed by Varun Beverages, Adani Power, Tube Investments and ICICI Bank. Reliance is ranked at No.10 on this list.
“During 2018-23, the top 100 wealth creators of India Inc created wealth of Rs 70.5 lakh crore, lower than (Rs 92.2 lakh crore in) the previous 5-year period 2017-22. Pace of wealth creation at 21 per cent CAGR is also lower than (28 per cent ) in the previous 5-year period, but well higher than the BSE Sensex return of 12 per cent,” the study said.
Reliance emerging as the largest wealth creator for the fifth time in succession has taken the company’s overall No.1 tally to 10 in the last 17 five-year study periods. TCS and Infosys continuously remain among the top 5 wealth creators.
“HDFC Bank does not feature in the top 10 list of wealth creators for the first time in several years,” the report said.
The technology sector has emerged as the largest wealth creating sector for the second year in a row, ahead of consumer and retail and financials. Technology has also gained a significant share of wealth creation – 20 per cent versus 9 per cent five years ago.
Like last year, the new kid on the block is chemicals/fertilizers with 3 per cent share. The biggest losers are rate sensitive financials and auto.
PSUs’ (public sector undertakings) wealth creation performance during 2018-23 is a significant improvement over the last two studies: 7 PSUs account for 6 per cent of wealth created.
“Two key factors have driven PSU wealth creation, turnaround by two banks (SBI and Bank of Maharashtra) and growth in the defense sector (Bharat Dynamics, Bharat Electronics and Hindustan Aeronautics),” it added.
