Adani Green fastest wealth creator during 2019-24: Motilal Oswal study

Reliance Industries (RIL) emerged as the biggest wealth creator for the sixth time in a row, while Adani Green and Adani Enterprises were the fastest wealth creators for the five-year period ending March 2024, reveals the 29th annual wealth creation study by Motilal Oswal.

 

Given its sheer size, RIL has remained the top wealth creator on an absolute basis during 11 out of the last 17 five-year study periods.

 

The average compounded annual growth rate (CAGR) for the 10 biggest wealth creators stood at 37 per cent between 2019 and 2015 versus returns of 14 per cent for the Nifty 50 index during the same period.

 

Meanwhile, the average stock price CAGR jump in the 10 fastest wealth creators stood at 77 per cent. 

 

In other words, Rs 10 lakh invested in 2019 in these top 10 companies would have grown into Rs 1.75 crore in 2024. Linde India and Varun Beverages were the most “consistent” wealth creators as they outperformed the benchmark Nifty 50 index during each of the previous five years even as their returns lagged the Adani duo.

 

Consistent wealth creation is a challenge as only six out of 100 have managed to outperform the Nifty in each of the five years, revealed the study.

 

The theme for this year’s study was creating wealth through “bruised bluechips”-- stocks with return of equity of over 20 per cent witnessing a fall of 50 per cent from their highs. Among the stocks identified as “bruised bluechips” in the list were Adani Total Gas and Adani Green, while Adani Enterprises, Gujarat Gas and SBI Cards remain on the watchlist as their fall from the peak is still around 40 per cent.  Rs 10 lakh invested in 2019 in these top 10 companies would have grown into Rs 1.75 crore in 2024