Motilal Oswal Financial Services on Friday announced its annual wealth creation study for 2016. According to the study, a continuous feature over the past 21 years, the top 100 wealth creators created ₹28.4 lakh crore during 2011-16, the third-highest ever quantum of wealth created. During 2011-16, the Sensex CAGR (compounded annual growth rate) was only 5 per cent, but the pace of Wealth Creation was a healthy 18 per cent CAGR.

TCS is the biggest wealth creator for the fourth consecutive year while Ajanta Pharma is the fastest for the second year in a row. Asian Paints is the most consistent wealth creator over the last 10-year period ending 2016.

Consumer/retail tops In terms of sectors, consumer/retail has emerged as India’s biggest wealth creating sector for the second consecutive time, and the third time in the last four years.

Three of the top five wealth creating sectors are financials, technology and healthcare.

Wealth created is calculated as change in the market cap of companies between 2011 and 2016, duly adjusted for corporate events, such as mergers, demergers, fresh issuance of capital, and buyback, among others, the brokerage firm pointed out.

T he total wealth destroyed during 2011-16 is ₹15 lakh crore, 53 per cent of the total wealth created by top 100 companies. Seven of the top 10 wealth destroyers are in commodities.

Metals/mining continue to be the biggest wealth destroying sectors, followed by banking and finance (mainly includes State-owned banks).

Related Topics