RIL, Lloyds Metals and Capri Global shine in Motilal Oswal's wealth survey
Reliance Industries (RIL), Lloyds Metals & Energy and Capri Global Capital have emerged as the largest, fastest and most consistent wealth creators respectively between 2018 and 2023, according to a study conducted by Motilal Oswal.
Mukesh Ambani-led RIL created assets of Rs 9.6 trillion in the last five years – most of it in absolute terms, followed by the Tata Group's flagship Tata Consultancy Services (Rs 6.8 trillion) and lender from the private sector ICICI Bank (Rs 4.2 trillion).
Adani Enterprises is the largest 'all-round' wealth creator, according to the 28th Wealth Creation survey, which notes that technology has emerged as the largest wealth creation sector in the past five years, followed by consumer and financial services. In terms of percentage growth, Lloyds Metals was the best performer, with annualized growth of 79 percent over the past five years. The Adani Group flagship was a close second with a CAGR growth of 78 percent, followed by Tube Investments (63 percent) and Linde India (56 percent).
In terms of consistent growth, the companies that stood out were Capri Global (CAGR growth of 50 percent), Varun Beverages (50 percent), Grindwell Norton (30 percent) and ICICI Bank (26 percent). According to the research by Raamdeo Agrawal, chairman of Motilal Oswal Group, the stock performance of each of them has been better than that of peers over the past five years.
During the period 2018-2023, India Inc's top 100 wealth creators created a wealth of Rs 70.5 trillion. Their market value grew at a CAGR of 21 percent, higher than that of the Sensex, which delivered an annualized return of 12 percent. The performance of public sector undertakings (PSUs) witnessed a remarkable turnaround during 2018-2023 compared to the previous two wealth creation surveys.
“Two key factors have driven the PSU's wealth creation: a turnaround by two banks (State Bank of India and Bank of Maharashtra) and growth in the defense sector (Bharat Dynamics, Bharat Electronics and Hindustan Aeronautics),” Motilal Oswal said in a note.
The total 'wealth destroyed' during 2018-2023 was Rs 17 trillion. In other words, these companies saw an erosion of their market value. The study found that six of the ten largest wealth-destroying companies come from the financial sector (including insurance).
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