Top wealth creating stocks in India: Reliance tops biggest wealth creator list; Adani Enterprises bags first spot as all-round stock

ICICI Bank, Adani Enterprises, Varun Beverages, Capri Global and Grindwell Norton have been identified as consistent wealth creators during the period of 2018-2023, according to the Motilal Oswal Wealth Creation Study. Reliance Industries, TCS, ICICI Bank, Infosys, and Bharti Airtel were also recognized as noteworthy wealth creators during this period.
Reliance Industries has secured its fifth consecutive spot as the largest wealth creator from 2018 to 2023, marking its tenth overall No.1 position in the last 17 five-year study periods.

Top 10 Biggest Wealth Creators 2018-23

Top 10 Biggest Wealth Creators 2018-23

One standout performer was Lloyds Metals, which emerged as the fastest wealth creator with a compounded return of 79% on their stock during this period. An investment of Rs 1 million in the top 10 Fastest Wealth Creators in 2018 would have soared to Rs 10 million by 2023, boasting a return CAGR of 59%, far surpassing the BSE Sensex‘s 12%.

Top 10 Fastest Wealth Creators 2018-23

Top 10 Fastest Wealth Creators 2018-23

Capri Global, a relatively low-profile company, emerged as the most consistent wealth creator over 2018-23. It consistently outpaced the BSE Sensex in all 5 years and holds the highest price CAGR of 50%.

Top 10 Consistent Wealth Creators 2018-23

Top 10 Consistent Wealth Creators 2018-23

The criteria for Consistent Wealth Creators assesses stocks based on their outperformance in each of the last 5 years, says the Motilal Oswal report.
Adani Enterprises retains its title as the Best All-round Wealth Creator for the second consecutive time. The report identifies All-round Wealth Creators by summing up ranks across the three categories: Biggest, Fastest, and Consistent. In cases of tied scores, the stock price CAGR determines the All-round rank.

Top 10 All Round Wealth Creators 2018-23

Top 10 All Round Wealth Creators 2018-23

Although the top 100 wealth creators in India Inc generated a total wealth of Rs 70.5 lakh crore during the 2018-2023 period, this figure is lower than the previous five-year period from 2017 to 2022.
The study also revealed that stocks with a price-to-earnings (PE) ratio between 25-30 times showed significantly higher returns compared to those with a PE ratio below 10 in the years 2018-2023. Similarly, stocks with a price-to-book (P/B) ratio between 5-6 times exhibited the highest returns.

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