Adani Enterprises, Airtel, HAL Shine Among Motilal Oswal's Top 10 Wealth Creators In Last Five Years
Adani Enterprises is among the top 10 Fastest Wealth Creators for a record five times in a row.
(Photo: Pralhad Shinde/ Source: NDTV Profit))
This report by Motilal Oswal underscores how India Inc created an unprecedented Rs 148 trillion in wealth during 2020–2025, marking the fastest pace of wealth creation in the study’s history at a 38% CAGR, significantly outpacing the Sensex CAGR of 21%.
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Motilal Oswal Report
The 30th Annual Wealth Creation Study by Motilal Oswal offers a deep dive into India’s equity market performance over the last five years and sets the stage for the next multi-trillion-dollar opportunity.
During 2020-25, the top 100 wealth creators of India Inc created an all-time high wealth of Rs 148 trillion, as March 2020 was a sharp low for the markets due to the Covid-induced lockdown.
Pace of wealth creation at 38% compound annual growth rate is the highest in the last 17 study periods, also significantly higher than the BSE Sensex return CAGR of 21%.
Motilal Oswal defines all-round wealth creators under three categories – 'biggest', 'fastest', and 'consistent'.
Top 10 Biggest Wealth Creators (2020-25)
Bharti Airtel is the Biggest Wealth Creator
At Rs 7.9 trillion, Bharti Airtel Ltd. is the biggest Wealth Creator over 2020 to 2025, followed closely by ICICI Bank at Rs 7.4 trillion.
The share of the top 10 wealth creators is just 31% of the total, the lowest ever. This suggests that from the covid low of March 2020, wealth creation is the most widespread ever.
Eight of the top 10 wealth creators have seen significant P/E re-rating, mainly justified by robust improvement in RoE from March 2020 lows.
SBI, Bajaj Finance, Larsen and Toubro, ITC, HCLTech, Sun Pharma, M&M, and NTPC follows the top 10 biggest wealth creators list.
Top 10 Fastest Wealth Creators (2020-25)
BSE has emerged as the fastest wealth creator with a 2020-25 total return CAGR of 124%.
Adani Enterprises Ltd. is among the top 10 fastest wealth creators for a record five times in a row.
Rs 10 million invested equally in 2020 in these top 10 companies would be worth Rs 240 million in 2025, a return CAGR of 88% vss 24% for the Nifty total return index.
The top 10 list is followed closely by Rail Vikas Nigam, Jindal Stainless, GE Vernova T&D, Persistent Systems, Dixon Tech, Adani Power, Adani Enterprises, Hitachi Energy.
Top 10 Most Consistent Wealth Creators (2020-25)
Hindustan Aeronautics is the Most Consistent Wealth Creator
Hindustan Aeronautics Ltd. has emerged as the most consistent wealth creator. It has outperformed the Nifty total return index in all the last five years, and has the highest total return CAGR of 75%.
The list is followed closely by Welspun Corp, Bharat Dynamics, Indian Bank, Bharat Electronics, Jindal Steel, Patanjali Foods, Cholamandalam Investment, Minda Corp., Radico Khaitan.
Consistent Wealth Creation is a challenge:
Of the top 500 market cap companies of 2020, only 13 have outperformed in each of the last five years.
Hindustan Aeronautics is the Best All-round Wealth Creator
The brokerage 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 total return CAGR decides the all-round rank.
Based on this criterion, Hindustan Aeronautics has emerged as the best all-round wealth creator.
For the past 10 successive study periods excluding this one, 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. This reinforces Motilal Oswal's pet take on market strategy, “Forget markets, think stocks.”
Click on the attachment to read the full report:
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