Top 100 Firms Created Wealth Worth Rs 49 Lakh Cr During 2014-19

Mumbai, December 23: The first term of the National Democratic Alliance (NDA) Government at the centre (2014-’19) has proved to be a bonanza for the capital market of the country. During the five year period, top 100 companies have created a wealth of over Rs 49 lakh crore for their investors, revealed 24th Annual Wealth Creation Study of the leading Brokerage firm Motilal Oswal Financial Services (MOFS). The study is authored by Ramdeo Agrawal, chairman, MOFS. 

This is the highest ever quantum of Wealth Created. During 2014-19 where as the benchmark index of the Bombay Stock Exchange (BSE) Sensex grew at a Compunded Annual Growth Rate (CAGR) of only 12 per cent, but the pace of wealth creation by these 100 companies was healthy at 22 per cent CAGR, the study said. The important takeaway of this study is that wealth creation happens in all kinds of market conditions. So, investors are better off focusing on which stocks to invest in, rather than timing the markets, it remarked.

Reliance Industries Limited (RIL) led by Mukesh Ambani emerged as the biggest wealth creator after a gap of 7 years during the study period. RIL created the wealth of Rs 5.6 lakh crore, the highest ever so far by a huge margin. 

Indiabulls Ventures was accorded the fastest wealth creator for the second time in a row with stock return at a whopping 78 CAGR. Bajaj Finance has the unique distinction of being in the top 10 biggest as well as fastest ealth Creators. Rs 10 lakh invested equally among the top 10 fastest wealth creators in 2014 would have grown to Rs 110 lakhs in 2019; a CAGR return of 61 per cent against barely 12 per cent yield provided by the Sensex. 

IndusInd Bank has emerged the most consistent wealth creator by virtue of – appearing among top 100 wealth creators in each of the last 10 studies; and recording the highest price CAGR of 49 per cent over the 10-year period 2009 to 2019, ahead of Pidilite Industries’ 40 per cent, Agrawal said.

Financial Sector has emerged as India’s biggest wealth creating sector over 2014-19 for the third consecutive year. Five of the top 10 biggest wealth creators are from the Financials sector. The surge in wealth creation in the sector has been led by private banks and NBFCs. Wealth creation during 2014-19 was highly concentrated – top 5 sectors accounted for a high 85 per cent of total wealth created.

The share of PSUs in the overall wealth creation was abysmal at only 6 per cent or approximately at Rs 30,000 crore. There were only nine listed PSUs among the top 100 Indian companies that contributed in created wealth for its investors. They included IOC, BPCL, HPCL, Power Grid Corporation, Petronet LNG, Indraprastha Gas, LIC Housing, Bharat Electronics and NBCC.