- Reliance Industries created investor wealth of ₹13.02 lakh crore in the period between 2017-22, delivering a compounded annual growth rate (CAGR) of 32%.
- On the other hand,
Adani Enterprises has emerged as the most consistent wealth creator. - The tech sector emerged as the top wealth creating sector with a contribution of ₹17.65 lakh crore between 2017-22.
Reliance Industries grabbed the top spot in the list of the biggest wealth creators, accounting for ₹13.02 lakh crore out of the ₹92.2 lakh crore wealth created by India’s top 100 listed companies, according to the Motilal Oswal Annual Wealth Creation Study 2022.
Overall, the Reliance Industries stock delivered a compounded annual growth rate (CAGR) of 32% between 2017 and 2022, while the average CAGR of the top 100 companies stood at 28%.
“For the past eight successive study periods, market benchmark indices have delivered muted returns ranging from 5% to 15%. Still, the top wealth creators have maintained their track record of 10-15% outperformance over the benchmark,” the report said.
Source: Motilal Oswal
The year of 2022 has been disappointing for IT companies like
TCS, Infosys and Wipro helped the tech sector dominate the list of top 10 biggest wealth creators during the period, creating a total wealth of ₹17.65 lakh crore.
The financial services sector came in second, with a total wealth creation of ₹11 lakh crore, with HDFC Bank, Bajaj Finance and ICICI Bank finding a place in the top 10 list.
The Gautam Adani-led Adani Enterprises topped the list of the most consistent wealth creators. This metric is based on the number of years during which a particular stock has outperformed the benchmark Sensex in each of the last five years, according to the report.
Adani Enterprises topped the list with a CAGR of 97%, followed by Alkyl Amines, Coforge, Mindtree, and L&T Infotech.
Two Adani group companies, Adani Enterprises and Adani Transmission, have found their way to the list of the best all-round wealth creators – a metric that takes into account wealth creators across the three categories in the study – biggest, fastest and most consistent.
“One key characteristic of mid and small cap stocks is high volatility of returns. Such stocks may outperform over five years, but in the interim, they may cause investors quite a few anxious moments. This is where consistency comes in,” the report said.
Reliance Industries also finds a spot in the list of all-round wealth creators, which also includes Bajaj Finance, Titan Company, and Coforge, among others. Interestingly, the IT giants TCS, Infosys and Wipro are absent, while two smaller IT companies – L&T Infotech, and Mindtree rank high in this list.
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