According to the Motilal Oswal Wealth Creation Study, numerous Indian equities stood out as continuous wealth builders from 2018 to 2023. ICICI Bank, Adani Enterprises, Varun Beverages, Capri Global, and Grindwell Norton were among them. In this period, Reliance Industries, TCS, ICICI Bank, Infosys, and Bharti Airtel were also recognized as big wealth builders.
Lloyds Metals was a standout performer throughout this time, emerging as the wealth creator with the fastest compounded return on equity, at 79%. With a spectacular return CAGR of 59%, which far outpaced the BSE Sensex’s 12%, an investment of Rs 1 million in the top 10 Fastest Wealth Creators in 2018 would have grown to Rs 10 million by 2023.
Relatively unknown Capri Global emerged as the most reliable source of wealth creation from 2018 to 23. It demonstrated the highest price CAGR of 50% and outperformed the BSE Sensex regularly throughout the course of the five years.
Based on their superior performance over the previous five years, Consistent Wealth Creators are rated in the Motilal Oswal report.
For the second time in a row, Adani Enterprises was named the Best All-around Wealth Creator. The Biggest, Fastest, and Consistent rankings are combined to determine the All-Round Wealth Creators in the report. In the event of a tie in scores, the All-around rank is decided by the stock price CAGR
Even though the top 100 wealth creators in India Inc. created a total of Rs 70.5 lakh crore in wealth between 2018 and 2023, this amount is less than what was generated in the preceding five-year period between 2017 and 2022.
The analysis also found that, from 2018 to 2023, equities with a price-to-earnings (PE) ratio of 25 to 30 times showed noticeably higher returns than those with a PE ratio of less than 10. In a similar vein, equities with the greatest price-to-book (P/B) ratio between 5 and 6 times returns.
