TCS biggest wealth creator since 2010

Software major Tata Consultancy Services (TCS) has created more wealth than any other stock in the domestic market since 2010, according to Motilal Oswal's annual wealth creation study. The Tata group company has added Rs 3.5 lakh crore between 2010 and 1015, said the brokerage. The second-biggest wealth creator has been FMCG major ITC, which has added Rs 1.56 lakh crore, followed by HDFC Bank, which added Rs 1.54 lakh crore in market value.

The theme for the brokerage's latest wealth creation study is "mid-to-mega", where it has identified companies that were midcaps five years ago but have grown to become megacaps.

 

In terms of pace of growth, midcap names like Ajanta Pharma, Symphony and Eicher Motors have managed to see exponential growth in their stock prices since 2010. The three stocks have posted compounded annual growth of over 90 per cent each.

"The challenge is to identity companies in the Rs 2,000 - 3,000 crore club that have potential to grow tto Rs 30,000 - 40,000 crore market capitalisation," said Raamdeo Agrawal, MD and co-founder, Motilal Oswal Financial Services and the author of the study.

"Some of the traits that investors should look at is high profitability, high growth, and good management," he said on selecting potential value creators.

In the report, Motilal Oswal has said it could be a bottom in terms of corporate profitability. "This looks to be the bottom, and next 3-5 years could see corporate profits rising to significantly higher levels," the report said.

"Bottoming out of commodities and meaningful pick-up in investment cycle should lay the foundation for long-term recovery of corporate earnings," it added.