Motilal Oswal has been publishing an annual wealth creation study for the past two decades. Their comprehensive analysis delves into the performance of the leading 100 wealth-creating companies over a five-year timeframe.
Here are five charts that tell you the story from the latest wealth creation study released recently.
It’s noteworthy to highlight that Reliance Industries has outperformed the benchmark Sensex index 4 out of 5 times during 2018-23.
Similarly, the CAGR of wealth created by the top 100 cos has exceeded that of Sensex constituents. However, it failed to surpass its preceding two study periods.
Two of the four stocks with consistent outperformance relative to the Sensex during the 5-year study period belong to the financial sector.
Conversely, both the auto and financial sectors have seen a sharp decline in their contribution to wealth creation during the past five-year period.
It is alarming to point out that the total wealth destroyed during 2018-23 is a quarter of the total wealth (created by top 100 cos) during the same period.