Fifth time in succession, Reliance Industries emerges as largest wealth creator in 2018-23

For the fifth time in succession, Reliance Industries has emerged as the largest Wealth Creator over 2018-23. This takes Reliance’s overall No.1 tally to 10 in the last 17 five-year study periods, as per Motilal Oswal 28th Annual Wealth Creation Study.

Reliance Industries, Lloyds Metals and Capri Global are the biggest, fastest, and most consistent wealth creators, respectively, between 2018 and 2023. Adani Enterprises is the top all-round wealth creator.

Technology sector is the largest wealth creating sector between 2018 and 2023, followed by the Consumer and Financials sector.

A relatively low-profile company, Lloyds Metals, has emerged the Fastest Wealth Creator with 2018-23 Price CAGR of 79 per cent.

Rs 1 million invested in 2018 in the top 10 Fastest Wealth Creators would be worth Rs 10 million in 2023, a return CAGR of 59 per cent vi/s 12 per cent for the BSE Sensex.

Capri Global is the most consistent wealth creator. We define Consistent Wealth Creators based on the number of years the stock has out-performed in each of the last five years. Where the number of years is the same, the stock price CAGR decides the rank.

Based on this, over 2018-23, the relatively low-profile Capri Global has emerged as the Most Consistent Wealth Creator. It has outperformed the BSE Sensex in all the last five years, and has the highest price CAGR of 50 per cent.

PSUs’ (public sector undertakings) Wealth Creation performance during 2018-23 is a significant improvement over the last two studies: 7 PSUs account for 6 per cent of Wealth Created.

Two key factors have driven PSU Wealth Creation — turnaround by two banks (SBI and Bank of Maharashtra) and growth in the defense sector (Bharat Dynamics, Bharat Electronics and Hindustan Aeronautics).

Financials are the top Wealth Destroyer despite being the third largest Wealth Creator, as per the study. The total Wealth Destroyed during 2018-23 is Rs 17 trillion, 25 per cent of the total Wealth Created by top 100 companies. This remains well below the Covid-hit study period 2015-20.

Six of the top 10 Wealth Destroying companies are from the Financials sector (including Insurance). Interestingly, Financials is the top Wealth Destroying sector, and the third largest Wealth Creating sector at the same time.