Adani Enterprises best all-round wealth creator for second straight year, says Motilal Oswal

Motilal Oswal defines all-round wealth creators based on the summation of ranks, under each of the three categories – biggest, fastest and consistent. Where the scores are tied, the stock price CAGR decides the all-round rank. Based on the above criteria, Adani Enterprises has emerged as the best all-round wealth creator.

Motilal Oswal Financial Services recently released its 28th Annual Wealth Creation Study for the period 2018-2023, where it shared the names of companies which created biggest wealth, fastest wealth and consistent wealth for the investors during this period.

It has ranked the top 100 companies in descending order of absolute wealth created, subject to the company’s stock price at least outperforming the benchmark BSE Sensex. These top 100 wealth creators are also ranked according to speed, that is price CAGR during the period under study.

The report triggered a sharp sell-off in the Adani Group stocks, wiping out about $100 billion from Gautam Adani’s listed empire. Adani Enterprises, also tumbled about 75 per cent from its peak at Rs 4,189.55 to Rs 1,017.10 in February. However, the stock has recovered about 200 per cent from those levels.

In the biggest wealth creator category, Adani Enterprises has added about Rs 1.75 crore in the given period, putting it at the ninth spot, while it is second in the fastest category with 5-year price CAGR of 78 per cent. It ranks fifth in terms of consistency, outperforming BSE Sensex for four years, out of previous five.

“It defined consistent wealth creators based on the number of years the stock has outperformed in each of the last 5 years. Where the number of years is the same, the stock price CAGR decides the rank,” it added. Adani Enterprises found its place in all three lists of top-10 wealth creators in terms of size, speed and consistency.

Despite the Hindenburg fiasco earlier this year, Adani Enterprises has been able to defy all-odds to reclaim its all-round performance. The US-based short seller Hindenburg Research has accused Adani Group of financial irregularities and misinterpretation of financial statements of Adani Group companies.

Adani Enterprises is followed by Varun Beverages, Adani Power, Tube Investments of India and ICICI Bank in the top five. Other top 10 companies include names like SRF, Linde India, Adani Energy Solutions (formerly known as Adani Transmission), LTIMindTree and Reliance Industries.

Category-wise, Reliance Industries has emerged the largest wealth creator over 2018-23 for the fifth time in succession, creating a wealth of Rs 9.64 lakh crore during the given period. Lloyds Metals, a low-profile company, has emerged the fastest wealth creator with price CAGR of 79 per cent, while Capri Global is the most consistent wealth creator in MOSL’s study