InvestorQ : Is it true that Reliance and Hindustan Unilever have emerged as the largest wealth creators in Motilal Oswal’s annual Wealth Study?
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Is it true that Reliance and Hindustan Unilever have emerged as the largest wealth creators in Motilal Oswal’s annual Wealth Study?

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Dilmini Mercia answered.
5 months ago
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The Annual Wealth Creation Study by Motilal Oswal has been identifying long term value creators in the Indian context for a long time now. Such value creators are also identified across the universe, across specific sectors and themes as well as across various definitions of market capitalization. Here are some of the highlights of the latest study.

· It is not too surprising that Reliance Industries has emerged as the biggest wealth creator in absolute terms in the last 25 years.

· Between the 1995 and 2020, RIL created wealth to the tune of Rs.630,000 crore. However, nearly 70% of this wealth was created post-2015 due to Jio impact.

· In the second place in absolute wealth creation was Hindustan Unilever which created Rs.490,000 crore during this 25-year period.

· At the third spot was Infosys which created Rs.210,000 crore of shareholder wealth. In percentage terms, Infosys was actually the biggest wealth creator in 25 years.

· During this 25 year period between 1995 and 2020, the Nifty offered CAGR returns of 9.2%, which is excluding the dividend yield on the Nifty.

· There were a total of 100 stocks on the NSE 500 that actually outperformed the Nifty in terms of 25 year CAGR; making them real wealth creators.

· Other than the Big-3, other companies like Bajaj Finance, Pidilite, Eicher, Britannia and Berger Paints were also among the top wealth creators in the last 25 years.

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