Adani Green Energy Ltd. has emerged as the fastest wealth creator during the five-year period with a compound annual growth rate of 118%, a Motilal Oswal Financial Services Ltd. study showed on Tuesday. The company has outperformed for four years.
According to 'Motilal Oswal 29th Annual Wealth Creation Study 2024', Rs 10 lakh invested in 2019 in the top 10 fastest wealth creator companies would be worth Rs 1.75 crore in 2024, a return of 77% compared to 14% for the market benchmark Nifty 50.
Two more Adani Group firms have made it to the list of these top 10 companies: Adani Enterprises Ltd. and Adani Power Ltd, as per the study.
Adani Enterprises, which is the flagship firm of the conglomerate, is the 'Best All-round Wealth Creator' for the third time in a row, generating 85% CAGR return in five years, it added.
MOFSL defines all-round wealth creators based on the summation of ranks, under each of the three categories – 'biggest', 'fastest' and 'consistent'. Where the scores are tied, the stock price CAGR decides the all-round rank.
The Adani Group flagship meets these criterias, scoring eighth rank in biggest and consistent sections, and second in fastest.
Adani Green Energy scored 12th in the biggest criteria, first in fastest and seventh in consistency.
Adani Power's stock, meanwhile, gave a 62% annualised return in five years.
During 2019-24 period, the top 100 wealth creators of India Inc. created wealth of Rs 138 lakh crore, representing a 26% CAGR, well higher than the BSE Sensex return of 14%.
The survey found financials sector emerged as the largest wealth creating sector, ahead of technology and utilities.
The wealth creation performance of PSUs from 2019-24 shows a significant improvement compared to the previous three studies, with 20 PSUs contributing a substantial 17% of the total wealth created, the report said.
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