India is on the path of becoming one of the largest economies in the world. Many Indian companies have made a name for themselves in the global market and emerged as one of the leading names in their respective fields.
Motilal Oswal Financial Services in its Motilal Oswal 25th Annual Wealth Creation Study, 2020 has stated that Infosys, Reliance Industries (RIL), and Kotak Mahindra Bank have emerged as the fastest, the biggest, and the most consistent wealth creator, between the period of 1995 to 2020, while consumer/retail sector has been the largest wealth-creating sector in the same period.
The report has also stated that Kotak Mahindra Bank has also been the top all-around wealth creator. The bank has delivered an annualized return of 25 percent from 1995 to 2020.
“In the 23 three-year rolling periods between 1995 and 2020, Kotak Mahindra has outperformed the corresponding benchmark in 21 of those periods. It is closely followed by Berger Paints NSE 0.43 % and HDFC with 20 periods of outperformance,” Motilal Oswal Financial Services said in the study.
Reliance Industries accounted for Rs 6.3 trillion in wealth created since 1995 and following RIL’s lead was Hindustan Unilever which was at Rs 4.9 trillion. As per the study, RIL added Rs 4.4 trillion in wealth between 2015 and 2020.
“Over 1995 to 2020, the Sensex rose from 3,200 levels in March 1995 to 29,500 by March 2020 i.e. a compound annual growth rate (CAGR) of 9.2…(percent). Coincidentally, exactly 100 companies delivered returns higher than 9.2…(percent)… We call these 100 the Fastest Wealth Creators,” the study stated.
Infosys and Bajaj Finance have also made the list of fastest and biggest wealth creators. HDFC, Kotak Mahindra Bank, ITC, Asian Paints, Nestle Bajaj Finance, and L&T were among the other biggest wealth creators.
Following Kotak Mahindra’s consistent performance, Berger Paints and HDFC delivered CAGR returns of 24 percent and 19 percent, respectively, during the same period.
Pidilite Industries, Shree Cement, Honeywell Automation, Motherson Sumi, Asian Paints, Dabur India, and Sun Pharmaceuticals delivered CAGR returns of 25%, 25%, 24%, 23%, 22%, 20% & 23% respectively.