Reliance Ind stock is biggest wealth creator, says Motilal Oswal study

Our Bureau Chennai | Updated on December 19, 2019 Published on December 19, 2019

‘Indiabulls Ventures is the fastest, while IndusInd Bank remains consistent performer’

Reliance Industries is the biggest wealth creator between 2014-19, according to Motilal Oswal’s 24th Annual Wealth Creation Study. While Indiabulls Ventures is the fastest wealth creator, IndusInd Bank remains the most consistent performer.

After a gap of seven years, Reliance Industries has once again emerged as the biggest wealth creator over 2014-19. “The ₹5.6-lakh crore wealth created by Reliance is the highest ever so far by a huge margin,” the study revealed. The evergreen HDFC Bank has emerged as the second biggest wealth creator at ₹4.08-lakh crore followed by TCS at ₹3.655-lakh crore.

For the second year in a row, Indiabulls Ventures has emerged as the fastest wealth creator, with 2014-19 stock price multiplier of 18x (78 per cent CAGR). Bajaj Finance has the unique distinction of being present in the top 10 list of both — the biggest and the fastest.

According to Motilal Oswal, ₹10 lakh invested equally among the top 10 fastest wealth creators in 2014 would have grown to ₹1.1 crore in 2019, producing a CAGR of 61 per cent as against just 12 per cent for the BSE Sensex.

IndusInd Bank has emerged the most consistent wealth creator by appearing among the top 100 wealth creators in each of the last 10 studies; and recording the highest price CAGR of 49 per cent over 2009-19.

Massive value erosion

Among the sectors, financials has emerged as India’s biggest wealth creator for the third consecutive study period. by generating 27 per cent CAGR. The surge in wealth creation in the sector has been led by private banks and NBFCs, the study said.

In just a short span of five years, almost one-third of stocks lost market value of 70 per cent or more. Of the total 3,440 listed stocks, 209 lost 90-100 per cent while 17 per cent or 594 stocks, are no longer listed. As many as 169 stocks slumped between 80 and 90 per cent while another 130 stocks lost 70-80 per cent. In a nutshell, one third of the stocks lost in excess of 70 per cent in the last five years.

Published on December 19, 2019
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