As per the recent Motilal Oswal 25th Wealth Creation Study, 2020, the companies Infosys, Reliance and Kotak Mahindra remains the fastest, biggest, and consistent wealth creator respectively, between 1995 and 2020. When it comes to the sectoral space, the consumer and retail sector is the largest wealth-creating sector between 1995 and 2020.
The report also points out to show that, Tasty Bite Eatables is the fastest wealth creator, Reliance is the biggest and Pidilite is the most consistent in the last 5 years. As per their research of the 1300 companies listed in 1995, only 100 companies have created meaningful wealth further till now.
For instance, from 1995 to 2020, Sensex witnessed a rise from 3,200 levels in March 1995 to 29,500 by March 2020 i.e., a Compounded Annual Growth Rate (CAGR) of 9 per cent. Within this time, exactly 100 companies delivered returns higher than 9.2 per cent, which falls under 100 fastest wealth creators.
“Between 1995 and 2020, Infosys clocked a robust price CAGR of 30 per cent to emerge as the fastest wealth creator. This was backed by 25-year profit after tax CAGR of 33 per cent,” notes the report.
When it comes to the biggest wealth creator between 1995 and 2020, Reliance Industries created a wealth of Rs 6.3 trillion and emerged as the biggest wealth creator. Infosys and Bajaj Finance emerged as the creditable performance of being among the top 10, both in terms of biggest and fastest wealth creators.
Also, almost 60 of the top 100 market cap companies in 1995 that did not make it to the wealth creators list include ACC, Tata Motors, Ashok Leyland, Reliance Infrastructure, and Century Textiles among others.
