Motilal Oswal Wealth Creation Study 2023 Highlights | RIL, TCS, ICICI Bank, among wealth creators

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– During 2018-23, the top 100 wealth creators made wealth of Rs 70.5 trillion, which was lower than the 2017-22 period.
– Pace of Wealth Creation at 21% CAGR is also lower than the previous 5-year period, but well higher than the BSE Sensex return of 12%.

For five straight years, Reliance Industries, India’s largest conglomerate by market capitalisation, has emerged as the largest wealth creator for its investors.

In its 28th Annual Wealth Creation Study released on December 14, the Mumbai-based brokerage firm Motilal Oswal showed that Reliance Industries added Rs 9.63 lakh crore over the period of 2018 to 2023 (as on March 31, 2023).

Read more here

The report says:
> The technology sector has emerged as the largest Wealth Creating sector for the second year in a row, ahead of Consumer & Retail and Financials.
> Technology has also gained significant share of Wealth Creation – 20% v/s 9% five years ago.
> Like last year, the new kid on the block is Chemicals/Fertilizers with 3% share.
> The biggest losers are rate sensitives – Financials and Auto.

For five straight years, Reliance Industries, India’s largest conglomerate by market capitalisation, has emerged as the largest wealth creator for its investors. In its 28th Annual Wealth Creation Study released on December 14, the Mumbai-based brokerage firm Motilal Oswal showed that Reliance Industries added Rs 9.63 lakh crore over the period of 2018 to 2023 (as on March 31, 2023).

Motilal Oswal ranks the top 100 companies in descending order of absolute wealth created, subject to the company’s stock price at least outperforming the benchmark index (BSE Sensex in this case). These top 100 Wealth Creators are also ranked according to speed (i.e. price CAGR during the period under study).

As per Motilal Oswal, wealth creation is the process by which a company enhances the market value of the capital entrusted to it by its shareholders.

“The foundation of Wealth Creation is to buy businesses at a price substantially lower than their ‘intrinsic value’ or ‘expected value’. The lower the market value compared to the intrinsic value, the higher the margin of safety. Every year, as in the past 28 years, we endeavour to cull out the characteristics of businesses that create value for their shareholders,” it adds.

“For listed companies, we define wealth created as the difference in market capitalisation over a period of last five years, duly adjusted for corporate events such as fresh equity issuance, mergers, demergers, share buybacks, etc.”

> During 2018-23, the top 100 wealth creators made wealth of Rs 70.5 trillion, which was lower than the 2017-22 period.
> Pace of Wealth Creation at 21% CAGR is also lower than the previous 5-year period, but well higher than the BSE Sensex return of 12%.

For five straight years, Reliance Industries, India’s largest conglomerate by market capitalisation, has emerged as the largest wealth creator for its investors. In its 28th Annual Wealth Creation Study released on December 14, the Mumbai-based brokerage firm Motilal Oswal showed that Reliance Industries added Rs 9.63 lakh crore over the period of 2018 to 2023 (as on March 31, 2023).

– Reliance: +1.49%
– TCS: +2.15%
– ICICI Bank: +2.29%
– Infosys: +3.29%
– Bharti Airtel: +0.82%
– HUL: +0.13%
– SBI: +0.55%
– Bajaj Finance: +3.18%
– Adani Enterprises: +1.49%
– HCLTech: +3.27%

The report says:
– The technology sector has emerged as the largest Wealth Creating sector for the second year in a row, ahead of Consumer & Retail and Financials.
– Technology has also gained significant share of Wealth Creation – 20% v/s 9% five years ago.
– Like last year, the new kid on the block is Chemicals/Fertilizers with 3% share.
– The biggest losers are rate sensitives – Financials and Auto.

The report says:

– We define All-round Wealth Creators based on the summation of ranks, under each of the 3 categories – Biggest, Fastest and Consistent. Where the scores are tied, the stock price CAGR decides the All-round rank.
– Based on the above criteria, Adani Enterprises has emerged as the Best All-round Wealth Creator.
– Two other Adani group companies – Adani Power and Adani Energy – also feature in the top
– All-round Wealth Creators.

Motilal Oswal In Its Note Says:

– We define Consistent Wealth Creators based on the number of years the stock has outperformed in each of the last 5 years. Where the number of years is the same, the stock price
CAGR decides the rank.
– Based on this, over 2018-23, the relatively low-profile Capri Global has emerged as the Most
– Consistent Wealth Creator. It has outperformed the BSE Sensex in all the last 5 years, and has the highest price CAGR of 50%.
– Consistent Wealth Creation is a challenge – only 4 out of 100 have outperformed in each of
the 5 years

– Relatively low-profile company, Lloyds Metals, has emerged the Fastest Wealth Creator with 2018-23 Price CAGR of 79%.

– During 2018-23, the top 100 wealth creators made wealth of Rs 70.5 trillion, which was lower than the 2017-22 period
– Pace of Wealth Creation at 21% CAGR is also lower than the previous 5-year period, but well
higher than the BSE Sensex return of 12%.

Watch his conversation with CNBC-TV18 LIVE here

– Captri Global
– Varun Beverages
– Grindwell Norton
– ICICI Bank
– Adani Enterprises
– Tube Investments
– Linde India
– Adani Power
– JB Chem & Pharma
– SRF

– Reliance
– TCS
– ICICI Bank
– Infosys
– Bharti Airtel
– HUL
– SBI
– Bajaj Finance
– Adani Enterprises
– HCL Tech

For five straight years, Reliance Industries, India’s largest conglomerate by market capitalisation, has emerged as the largest wealth creator for its investors.

In its 28th Annual Wealth Creation Study released on December 14, the Mumbai-based brokerage firm Motilal Oswal showed that Reliance Industries added Rs 9.63 lakh crore over the period of 2018 to 2023 (as on March 31, 2023).

Read more here

– Rise of capital markets
– Build up in the savings boom in india
– Capex boom
– Real estate
–

Agrawal says the basis of the 28th wealth creation study is that “you must measure success of co interms of economic profit”

Agrawal says the gap between India and US growth is high. “We have good suport of good GDPgrowth, retail liquidity and strong corporate earnings,” he said.

gap between India and US growth is high

we have good suport of good gdp growth, retail liquidity and strong corporate earnings

Watch the LIVE interview here