Reliance Industries emerges as largest wealth creator in 5 years: Motilal Oswal report

Tata Consultancy Services, ICICI Bank, Infosys, Bharti Airtel, and Hindustan Unilever were also some of the largest wealth creators durin 2018-23

Reliance Industries Limited (RIL) has emerged as the largest wealth creator for the fifth time in a row in the span of five years (2018-2023), showed a recent annual weath creation study by Motilal Oswal. This takes RIL's overall number 1 tally to 10 in the last 17 five-year study periods, the report said.

RIL's price-to-earnings ratio climbed to 24 times (x) in 2023 as compared to 15x PE multiple in 2018. The conglomerate created wealth of around Rs 9.6 lakh crore so far in 2023, data suggested.

Following RIL, the next in line of the largest wealth creators included Tata Consultancy Services, ICICI Bank, Infosys, Bharti Airtel, and Hindustan Unilever.

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That apart, a low-profile company named Llyod Metals emerged as the fastest wealth creator within 2018-2023, with a price compounded annual growth rate (CAGR) of 79 percent.

"Around Rs 1 million that would be have been invested in 2018 in top 10 fastest wealth creators would be worth Rs 10 million in 2023, a return CAGR of 59 percent vis-à-vis 12 percent for the BSE Sensex," the report said.

Following Llyod Metals, Adani Enterprises was the second fastest wealth creator on the list with 78 percent price CAGR.

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When it comes to the most consistent wealth creator, the report identified Capri Global, a diversified non-banking lender to be the top performer. It has outperformed the BSE Sensex in the last five years and has the highest price CAGR of 50 percent in 2018-23.

"We define consistent wealth creators based on the number of years the stock has outperformed in each of the last five years. Where the number of years is the same, the stock price CAGR decides the rank," the Motilal Oswal note added.

Following Capri Global, Varun Beverages, Grindwell Norton, ICICI Bank were also some of the top consistent wealth creators during 2018-23 period.

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Finally, the winner of all-round wealth creators during 2018-23 was Adani Enterprises - the Adani Group flagship - with the highest price CAGR of 78 percent during 2018-23.

"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," the report highlighted.

The other all-round wealth creators during 2018-23 were Varun Beverages, Adani Power, Tube Investments, ICICI Bank, SRF, Linde India, Adani Energy, LTIMindtree, and Reliance Industries.

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