Reliance Industries has secured its position as the leading Wealth Creator for the fifth consecutive time from 2018 to 2023, marking its 10th top ranking in the last 17 five-year study periods, according to Motilal Oswal's 28th Annual Wealth Creation Study. Lloyds Metals, a relatively low-profile company, emerges as the Fastest Wealth Creator with a remarkable 79% Price CAGR during 2018-23. Adani Enterprises claims the title of the top all-round wealth creator. The Technology sector dominates as the largest wealth-creating sector during this period, followed by Consumer and Financials. Capri Global stands out as the Most Consistent Wealth Creator, outperforming the BSE Sensex for five consecutive years with a 50% price CAGR. Public sector undertakings (PSUs) show improved wealth creation performance, driven by banking turnarounds and defense sector growth. Despite ranking third in wealth creation, the Financials sector is the top Wealth Destroyer, accounting for 25% of the total Wealth Created by the top 100 companies during 2018-23. Notably, this remains below the levels observed during the Covid-hit study period of 2015-20.
Key points:
1. Reliance Industries has maintained its position as the largest Wealth Creator for the fifth consecutive time over the period 2018-2023, securing the top spot in 10 out of the last 17 five-year study periods, according to the Motilal Oswal 28th Annual Wealth Creation Study.
2. Lloyds Metals, a comparatively low-profile company, is identified as the Fastest Wealth Creator with an impressive 79% Price CAGR from 2018 to 2023.
3. Capri Global stands out as the Most Consistent Wealth Creator during 2018-2023, consistently outperforming the BSE Sensex in all five years with the highest price CAGR of 50%.
4. Adani Enterprises is recognized as the top all-round wealth creator during the mentioned period.
5. The Technology sector emerges as the largest wealth creator between 2018 and 2023, followed by the Consumer and Financials sectors.
6. A notable finding is that PSUs (public sector undertakings) have improved their Wealth Creation performance during 2018-2023, with 7 PSUs contributing to 6% of Wealth Created. Key factors include the turnaround of SBI and Bank of Maharashtra, along with growth in the defense sector.
7. Financials, despite being the third-largest Wealth Creator, is identified as the top Wealth Destroyer during 2018-2023. Six of the top 10 Wealth Destroying companies belong to the Financials sector.
8. The total Wealth Destroyed during the mentioned period is Rs 17 trillion, constituting 25% of the total Wealth Created by the top 100 companies. This is notably lower than the figures from the previous study period (2015-20) affected by the COVID-19 pandemic.
(With Agency Inputs)
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