Motilal Oswal Reveals D-Street’s Biggest, Fastest, and Most Consistent Wealth Creators; do you have any?
Reliance Industries, Adani Transmission and Adani Enterprises emerged as the largest, fastest and most consistent wealth creators, respectively, between 2016 and 2021, while the financial sector was the largest wealth-creating sector during the same period, said Motilal Oswal Financial Services in its 26th Annual Motilal Oswal Wealth Creation Study, 2021.
Adani Enterprises was also the first creator of wealth across the board, the brokerage firm said. He further added that the financial and technological sectors will be the backbone of wealth creation for some time in the future.
The study found that during the 2016-21 period, telecommunications power giant Reliance Industries (RIL) emerged as the largest wealth creator for the third time in a row, with total wealth created from a whopping Rs 9.7 lakh crore. This is by far the highest on record, breaking its previous record of Rs 5.6 lakh crore in 2014-19.
On the other hand, Adani Transmission became the fastest wealth creator with a price CAGR of 93% in 2016-21. Deepak Nitrite, Adani Enterprises, Tanla Platforms, Ruchi Soya Industries, Alkyl Amines, Vaibhav Global, APL Apollo Tubes, P&G Health, and Escorts were among the other fastest-growing wealth builders with an annualized return of between 55% and 91% since 2016 .
âRs 10 lakh invested equally in 2016 among the 10 fastest creators of wealth would have reached Rs 1.7 crore in 2021. This shows the CAGR return of 77% against only 14% for the Sensex,â said Motilal Oswal Creation Study. .
Overall, around Rs 71 lakh crore wealth has been created for investors on Dalal Street over the past five years. This is by far the highest wealth ever created in the last 26 five-year periods.
Adani Enterprises, which has emerged as the most consistent creator of wealth, has outperformed over the past five years and has the highest price CAGR of 86%. With an annualized return of between 30% and 94%, Alkyl Amines, P&G Health, Vinati Organics, Astral, Honeywell Automation, Aarti Industries, SRF, Reliance Industries and Adani Transmission were among the other top constant creators of wealth.
Going forward, the brokerage firm said value would migrate globally from Atoms (companies dealing with physical matter) to Bits (companies of a digital nature).
âIt has already played out in a big way in the United States. The digital ecosystem in India is good for Atoms-to-Bits to play here, âthe study said.