- Reliance Industries created an investor capital of ₹13.02 lakh crore during the period between 2017-22, yielding a compound annual growth rate (CAGR) of 32%.
- On the other hand, Adani Enterprises has emerged as the most consistent wealth creator.
- The technology sector emerged as the most wealth creating sector with a contribution of ₹17.65 lakh crore between 2017-22.
Mukesh Ambani and Gautam Adani have come out on top in yet another list. According to Motilal Oswal, these billionaires’ companies, Reliance Industries and Adani Enterprises, were ranked as the largest and most consistent wealth creators, respectively, over the period 2017-22.
Reliance Industries took the top spot in the list of the largest wealth creators, accounting for ₹13.02 lakh crore 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, Reliance Industries stock delivered a compound annual growth rate (CAGR) of 32% from 2017 to 2022, while the average CAGR of the top 100 companies was 28%.
“Over the past eight consecutive study periods, market benchmark indices have produced moderate returns ranging from 5% to 15%. Still, the largest wealth providers have maintained their track record of 10-15% outperformance against the benchmark,” the report said.
|dependent industries||₹ 13,01,800 Crore|
|TCS||₹ 9,54,800 Crore|
|HDFC Bank||₹4,10,800 crore|
|Bajaj Finance||₹361,400 crore|
|ICICI Bank||₹3,28,600 crore|
|Adani transmission||₹ 2,53,800 Crore|
|Hindu Unilever||₹ 2,44,200 Crore|
|Bharti Airtel||₹ 2,42,200 Crore|
Source: Motilal Oswal
Technology emerges as the largest wealth-creating sector
The year 2022 has been disappointing for IT companies such as TCS, Infosys, Wipro, HCL Tech, among others, with their shares tumbling between 12-44%. But the technology sector as a whole has emerged as the largest source of wealth in the period 2017-2022.
TCS, Infosys and Wipro helped the technology sector to dominate the list of the top 10 wealth providers during the period, creating a total wealth of ₹17.65 lakh crore.
The financial services sector came in second, with total wealth creation of ₹11 lakh crore, with HDFC Bank, Bajaj Finance and ICICI Bank placing in the top 10.
Adani Enterprises tops the list of most consistent wealth creators
Gautam Adani-led Adani Enterprises topped the list of the most consistent wealth creators. This metric is based on the number of years a given stock has outperformed its benchmark Sensex in each of the past five years, the report said.
Adani Enterprises led the list with a CAGR of 97%, followed by Alkyl Amines, Coforge, Mindtree and L&T Infotech.
Two companies from the Adani group emerge as the best all-round wealth creators
Two Adani group companies, Adani Enterprises and Adani Transmission, have made their way onto the list of the best all-around power providers – a measure that takes into account power providers in the three categories in the study – largest, fastest and most consistent.
“An important characteristic of mid- and small-cap stocks is the high volatility of returns. Such stocks may outperform five years from now, but in the meantime they can cause investors quite a few anxious moments. This is where consistency comes into play,” the report said.
Reliance Industries also finds its place in the list of all-round wealth providers, 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 are high on this list.
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