Gautami Adani’s Adani Enterprises, on the other hand, has been found to be the best all-round wealth creator for the second time in a row. In the study, all-round wealth creators have been decided based on the summation of ranks, under each of the 3 categories – biggest, fastest and consistent.
Besides RIL, other biggest wealth creators include TCS, ICICI Bank, Infosys, Bharti Airtel, HUL, SBI, Bajaj Finance, Adani Enterprises and HCL Tech.
Wealth created is calculated as change in the market cap of companies between 2018 and 2023 (March ending), duly adjusted for corporate events such as mergers, de-mergers, fresh issuance of capital, buyback, etc.
In successive 5-year periods, this is the fifth time that RIL has emerged as the largest wealth creator, taking RIL’s overall No.1 tally to 10 in the last 17 five-year study periods.
Fastest Wealth Creator
A relatively low-profile company, Lloyds Metals, has emerged the fastest wealth creator with 2018-23 price CAGR of 79%. Motilal report shows that just 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% vs 12% for Sensex.
Consistent Wealth Creator
Capri Global has emerged as the most consistent wealth creator on Dalal Street by outperforming Sensex in all last 5 years and having the highest price CAGR of 50%. Consistency is measured in terms of the number of years the stock has outperformed in each of the last 5 years.
Other consistent winners include Varun Beverages, Grindwell Norton, ICICI Bank, Adani Enterprises, Tube Investments, Line India, Adani Power, JB Chemicals and SRF.
IT top sectoral gainer
Technology sector has emerged as the largest wealth creating sector for the second year in a row, ahead of consumer & retail and financials.
PSU stocks
Shares of PSUs, which have been the favourite of investors in the last few months, showed a significant improvement in wealth creation during the last 5 years.
“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),” Motilal said.
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