Adani Green has emerged as the fastest wealth creator during the five-year period (2019-March 2024), with a compound annual growth rate (CAGR) of 118 per cent, a Motilal Oswal Financial Services Limited (MOFSL) study showed on Tuesday.
According to the ‘29th Motilal Oswal Annual Wealth Creation Study,” Rs 10 lakh invested in 2019 in the top ‘10 Fastest Wealth Creators’ would be worth Rs 1.75 crore in 2024, a return CAGR of 77 per cent compared to 14 per cent for Nifty 50.
Adani Enterprises became the ‘Best All-round Wealth Creator’ for the third time in a row.
"We define all-round wealth creators based on the summation of ranks, under each of the three categories – Biggest, Fastest and Consistent. Where the scores are tied, the stock price CAGR decides the All-round rank. Based on the above criteria, Adani Enterprises has emerged as the Best All-round Wealth Creator," the MOFSL study said.
During 2019-2024, the top 100 wealth creators of India Inc created wealth of Rs 138 lakh crore. The pace of Wealth Creation was at 26 per cent CAGR, well higher than the BSE Sensex return of 14 per cent.
The study defined consistent wealth creators based on the number of years the stock has outperformed in each of the last 5 years.
"Where the number of years is the same, the stock price CAGR decides the rank. Based on this, over 2019-2024, the relatively low-profile Linde India has emerged as the Most Consistent Wealth Creator. It has outperformed the Nifty Total Return Index in all the last 5 years, and has the highest price CAGR of 68 per cent," according to the study.
The financial sector emerged as the largest wealth-creating sector, ahead of technology and utilities in the reported period.
Public sector undertakings (PSUs) wealth creation performance during 2019-2024 is a significant improvement over the last three studies -- 20 PSUs accounted for a healthy 17 per cent of wealth created.
"The key factors driving PSU wealth creation are the profit of 9 financial companies rising 19 times over 5 years and the profit of Coal India rising 4 times over 5 years," the study noted.
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