Reliance Industries, Adani Transmission and Adani Enterprises emerged as the biggest, the fastest and the most consistent wealth creator, respectively, between 2016 and 2021, while the financials sector stood as the largest wealth-creating sector during the same period, said Motilal Oswal Financial Services in its Motilal Oswal 26th Annual Wealth Creation Study, 2021.
Adani Enterprises has also been the top all-round wealth creator, the brokerage firm said. It further added that financial and technology sectors to spearhead wealth creation for quite some time in the future.
The study revealed that over 2016-21, energy-to-telecom behemoth Reliance Industries (RIL) emerged as the largest wealth creator for the third time in succession, with a total wealth created of a whopping Rs 9.7 lakh crore. This is by far the highest ever, beating its previous record of Rs 5.6 lakh crore in 2014-19.
On the other hand, Adani Transmission has emerged as the fastest wealth creator with a price CAGR of 93 per cent during 2016-21. Deepak Nitrite, Adani Enterprises, Tanla Platforms, Ruchi Soya Industries, Alkyl Amines, Vaibhav Global, APL Apollo Tubes, P&G Health and Escorts stood among other fastest wealth creators with an annualized return of between 55 per cent and 91 per cent since 2016.
“Rs 10 lakh invested equally in 2016 among the top 10 fastest wealth creators would have grown to Rs 1.7 crore in 2021. This shows the return of CAGR of 77 per cent against just 14 per cent for the Sensex,” Motilal Oswal Creation Study said.
Overall, around Rs 71 lakh crore wealth was created for investors on Dalal Street in the past five years. This is by far the highest ever wealth created in the last 26 five-year periods.
Adani Enterprises, which emerged as the most consistent wealth creator, has outperformed in all the last five years and has the highest price CAGR of 86 per cent. With an annualised return of between 30 per cent and 94 per cent, Alkyl Amines, P&G Health, Vinati Organics, Astral, Honeywell Automation, Aarti Industries, SRF, Reliance Industries and Adani Transmission stood among other major consistent wealth creators.
Going ahead, the brokerage firm said that value is migrating globally from Atoms (businesses dealing in the physical matter) to Bits (businesses that are digital in nature).
“This has already played out in a big way in the US. The digital ecosystem in India is right for Atoms-to-Bits to play out here,” the study said.
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