Comments
Two Gujarat-based businessmen — Mukesh Ambani and Gautam Adani — have stolen the thunder when it comes to wealth creation for investors.
According to a study done by Motilal Oswal Financial Services, Reliance Industries, Adani Transmission and Adani Enterprises were the biggest, fastest and most consistent wealth creator, respectively, between 2017 and 2022. For the fourth time in a row, Reliance Industries has emerged the largest Wealth Creator over 2017-22, the report further said.
Adani Enterprises and Adani Transmission also top the “All-round Wealth Creators” list, Motilal Oswal’s 27th Annual Wealth Creation Study has revealed. The All-round Wealth Creators list was based on the summation of ranks under each of the three categories — biggest, fastest and consistent.
“For the second successive time, Adani Transmission has emerged the fastest wealth creator with a 2017-22 price CAGR of 106 per cent,” the report said.
Over 2017-22, Adani Enterprises has emerged as the Most Consistent Wealth Creator. It has outperformed the BSE Sensex in all the last five years, and has the highest price CAGR of 97 per cent. “We define Consistent Wealth Creators based on the number of years the stock has out-performed in each of the last five years. Where the number of years is the same, the stock price CAGR decides the rank,” the domestic brokerage has explained its rationale.
PSUs lag
Wealth creation by PSUs (public sector undertakings) over 2017-22 is the worst ever to date. The only wealth creating PSU is Gujarat Gas. Wealth created by the company is a mere 0.3 per cent of the total wealth created.
The total wealth destroyed during 2017-22 is ₹14-lakh crore, 16 per cent of the total wealth created by top 100 companies. “This is sharply below the previous Covid-hit study period 2015-20. Four of the top 10 wealth destroying companies are PSUs.
Tech sector shines
On the other hand, technology sector has emerged as the largest wealth creator after a gap of eight years. Financial sector was the second largest wealth creator.
“The financial sector, coming out of despair, should continue to dominate Wealth Creation in the foreseeable future,” Motilal Oswal Financial said.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.