For the fifth five-year term in a row, 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).
RIL contributed to 13.7% of the wealth created by the top 100 companies on the list, which include Tata Consultancy Services, ICICI Bank, Infosys, and Bharti Airtel in the top five spot. The next five positions were bagged by Hindustan Unilever, State Bank of India, Bajaj Finance, Adani Enterprises, and HCL Technologies.
It must be noted that wealth created implies the increase in market capitalization over the last five years, duly adjusted for corporate actions such as fresh equity issuance, mergers, demergers, share buybacks, etc.
This report comes at a time when Chairman Mukesh Ambani is the world's 14th richest person with a net worth of $95.8 billion, according to Forbes data on December 14.
Not just that, in the 17 years that Motilal Oswal has been conducting the study, the retail-to-telecom-oil conglomerate Reliance Industries has secured the top spot 10 times in the biggest wealth creators list that is put out annually.
Though RIL shares have declined 4.5% in 2023 (year-to-date) and about 6% in the past year, the stock has given a return of a massive 123% in the past five years as against the benchmark Sensex which has risen 95% during the period.
While the fastest wealth creator over the period of five years was Lloyds Metals with a five-year price compounded annual growth rate (CAGR) of 79%, it was followed by Adani Enterprises which has a CAGR of 78% for the 2018-2023 period.
This has been a decade of transformation for Reliance Industries. In 2014, it was an energy giant. Today, it is the country's largest retail chain, biggest telecom operator by subscriber base and has significant investments in a whole host of sectors, including artificial intelligence.
Earlier in October, Reliance Industries reported an increase of nearly 9% in profit (₹17,394 crore) and more than 12% in revenue (₹255,996 crore) on a sequential basis for the July to September quarter.
First Published: Dec 14, 2023 10:52 AM IST
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