Defence and capital goods companies emerged as standout performers in Motilal Oswal’s 30th Annual Wealth Creation Study ( By Raamdeo Agrawal) for the 2020–25 period, even as the Banking & Finance sector retained its position as the largest overall contributor wealth creation. The report, released on December 11 in Mumbai highlighted that total wealth created by the top 100 companies reached an all-time high of Rs 148 trillion during the period.
Defence dominates several performance categories
Hindustan Aeronautics Ltd (HAL) led rankings in two categories, emerging as both the Most Consistent Wealth Creator (outperforming the Nifty Total Return Index in each of the last five years) and the Best All-round Wealth Creator, supported by a 75% total return CAGR. Other notable defence PSUs included Bharat Dynamics Ltd (BDL) and Bharat Electronics Ltd (BEL), delivering strong total return CAGRs of 70% and 66%, respectively. Outside the defence sector, top performers among the All-round Wealth Creators included Adani Power, BSE, Persistent Systems, Rail Vikas Nigam, Indian Bank, Varun Beverages, Trent, and Jindal Steel, highlighting strong wealth creation across sectors such as energy, financial services, technology, infrastructure, and consumer goods. The report notes that consistent wealth creation is challenging, with only 13 of the top 100 companies managing to outperform each year over the five-year period.
Capital goods companies also posted strong gains. Larsen & Toubro ranked among the Top 10 Biggest Wealth Creators, adding Rs 3.97 trillion in market capitalisation over 2020–25. The sector featured prominently in the Fastest Wealth Creators list as well, with GE Vernova T&D delivering an 85% CAGR and Dixon Technologies recording a 79% CAGR. The study notes that cyclical sectors such as Capital Goods/Engineering were “significant gainers in Wealth Creation vis-à-vis five years ago.” The Capital Goods/Engineering sector created Rs 13,974 billion in wealth during 2020–25, with a 47% Price CAGR and an increase in sectoral PAT growth from 15% in 2020 to 42% in 2025. It is also classified within the broader capex group, which the report describes as “must for India’s growing economy.”
The report additionally highlights a broader resurgence in public-sector companies, noting that PSUs accounted for 25% of total wealth created in 2020–25, supported in part by profit turnarounds in seven state-run companies. Notably, four of the Top 10 All-round Wealth Creators were PSUs (including Bharat Electronics and HAL), reflecting an unusual shift compared with previous reported periods.
At the sector level, Banking & Finance remained the top wealth-creating sector for the second consecutive study, generating Rs 36,534 billion during that period, more than any other sector, driven by strong credit expansion and improved profitability, particularly among PSU banks. The report attributes the sharp jump in sector profits partly to six PSU banks that delivered profit turnarounds over the five-year period, contributing to a sector-wide PAT increase of 274x.
Motilal Oswal suggests that India is entering a “Multi-Trillion Dollar (MTD) Opportunity.” The report highlights strong long-term growth potential for sectors such as Financials, Consumer Discretionary, and industries linked to capital spending. Many of the companies that have performed well during this period are expected to continue creating significant wealth in the years ahead. The MTD theme emphasizes that India’s economic and corporate growth over the coming decades could support sustained wealth creation, anchored in structural factors like rising financialisation, expanding equity ownership, and stronger corporate profitability.
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