scorecardRIL, Adani Enterprises are the biggest and most consistent wealth creators: Motilal Oswal
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RIL, Adani Enterprises are the biggest and most consistent wealth creators: Motilal Oswal

RIL, Adani Enterprises are the biggest and most consistent wealth creators: Motilal Oswal
Business4 min read
  • 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.
Mukesh Ambani and Gautam Adani have emerged on the top in yet another list. The companies of these billionaires – Reliance Industries and Adani Enterprises were ranked as the biggest and most consistent wealth creators respectively, during the 2017-22 period, according to Motilal Oswal.

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.

Company

Wealth created

Reliance Industries

₹13,01,800 crore

TCS

₹9,54,800 crore

Infosys

₹5,79,500 crore

HDFC Bank

₹4,10,800 crore

Bajaj Finance

₹361,400 crore

ICICI Bank

₹3,28,600 crore

Adani Transmission

₹2,53,800 crore

Hindustan Unilever

₹2,44,200 crore

Bharti Airtel

₹2,42,200 crore

Wipro

₹2,30,200 crore


Source: Motilal Oswal

Technology emerges as the single biggest wealth creating sector

The year of 2022 has been disappointing for IT companies like TCS, Infosys, Wipro, HCL Tech, among others, with their stocks tumbling between 12-44%. But the technology sector as a whole has emerged as the biggest wealth creator over the 2017-22 period.

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.

Adani Enterprises tops the list of most consistent wealth creators

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 emerge as the best all-round wealth creators

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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