Reliance, TCS emerge the largest wealth creators in the last 5 years

Suresh P. Iyengar | | | Updated on: Dec 16, 2021

Adani group stocks emerge fastest grower: Motilal Oswal study

Reliance Industries, TCS and Adani group emerged as the consistent wealth creators in last five years.

Reliance was the biggest wealth creator for the third successive year. It created wealth of ₹9.7-lakh crore between 2016-21, beating its own previous record of ₹5.6-lakh crore in 2014-19, according to Motilal Oswal 26th Annual Wealth Creation Study.

Top 100s highest ever show

In the last five years, the top 100 companies generated wealth of ₹71-lakh crore against ₹26-lakh crore in 2015-20. This is the highest-ever wealth created in the last 130 years.

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Other companies on this list of the biggest wealth creators include TCS (₹7.2-lakh crore), HDFC Bank (₹5.2-lakh crore), Hindustan Unilever (₹3.4-lakh crore), Infosys (₹3.2-lakh crore), Bajaj Finance (₹2.5-lakh crore), ICICI Bank (₹2.4-lakh crore), HDFC (₹2.4-lakh crore), Kotak Mahindra Bank (₹2-lakh crore) and HCL Technologies (₹1.6-lakh crore).

An investment of ₹10 lakh in the top 10 fastest wealth creators in 2016 would have grown to ₹170 lakh in 2021, a compounded annual growth rate of 77 per cent against 14 per cent by the Sensex.

Adani Group wins big

Over the last five years, Adani Transmission has emerged the fastest wealth creator with price CAGR of 93 per cent.

Another Adani Group company — Adani Enterprises — ranked the third fastest wealth creator.

Adani Enterprises was the most consistent wealth creator. It has outperformed in all the last 5 years and has the highest price CAGR of 86 per cent. Adani Transmission was the Best All-round Wealth Creator.

PSUs lose out

The financial sector regained its top spot in wealth creation after briefly losing it to consumer and retail sector in the previous study.

Wealth creation PSUs was the worst in last five years with only two — Gujarat Gas and Indraprastha Gas — making it to the top 100 wealth creators.

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The top 100 worst performers lost ₹11-lakh crore wealth in the last five years with PSUs and public sector banks leading the list.

Shift to digital

Raamdeo Agrawal, Chair, Motilal Oswal Group, said that globally, value is migrating from Atoms (businesses dealing in physical matter) to Bits (businesses which are digital in nature). This has already played out in a big way in the US and the digital ecosystem in India is right for Atoms-to-Bits to play out in India.

Unlike Atoms, he said, Bits deal in intangible assets, enjoy low cost of replicating their offering and benefit from network effects. As a result, Bits can scale up rapidly compared to their Atoms counterparts, he added.

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Published on December 15, 2021
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