Reliance and Adani Lead as India's Top Wealth Creators: Motilal Oswal Study 2018-2023

A recent study by Motilal Oswal Financial Services, analyzing the stock market performance of companies, reveals that Reliance Industries Ltd and Adani Enterprises Ltd stand out as India's biggest wealth creators from 2018 to 2023.

Reliance Industries Ltd secured its position as the largest wealth creator for the fifth consecutive time during this five-year period, contributing a staggering ₹9,63,800 crore to the nation's wealth. Following closely, Adani Enterprises Ltd emerged as the top all-round wealth creator with a Compound Annual Growth Rate (CAGR) of 78 per cent.

Other significant wealth creators during this period include Tata Consultancy Services, ICICI Bank, Infosys, and Bharti Airtel. Interestingly, Lloyds Metals, a relatively low-profile company, claimed the title of the fastest wealth creator, boasting a CAGR of 79 per cent from 2018 to 2023.

The study highlights that a ₹10 lakh investment in the top 10 fastest wealth creators in 2018 would have grown to ₹1 crore by 2023, indicating a remarkable Return CAGR of 59 per cent.

Capri Global earned recognition as the most consistent wealth creator, outperforming the BSE Sensex over the past five years with a high price CAGR of 50 per cent.

In terms of all-round wealth creation, defined as being the biggest, fastest, and most consistent stock market performer, Adani Enterprises takes the lead. The study positions it as the 9th biggest wealth creator, second fastest, and fifth most consistent. Following closely are Varun Beverages, Adani Power, Tube Investments, and ICICI Bank, with Reliance securing the 10th position.

However, the study notes a decline in overall wealth creation by the top 100 companies of India Inc during this period compared to the previous five years. Nevertheless, the technology sector emerged as the largest wealth-creating sector for the second consecutive year, surpassing consumer and retail and financials. Technology's share of wealth creation rose to 20 per cent, up from 9 per cent five years ago.

Notably, public sector undertakings (PSUs) showed a marked improvement in wealth creation performance, accounting for 6 per cent of total wealth created. Factors contributing to this include the turnaround of two banks (SBI and Bank of Maharashtra) and growth in the defense sector (Bharat Dynamics, Bharat Electronics, and Hindustan Aeronautics).