CHENNAI: For the fifth time in a row, Tata Consultancy Services retained its top slot in Motilal Oswal’s 22nd Annual Wealth Creation Study, creating investor wealth worth Rs 2.5 lakh crore between 2012 and 2017. According to the study, released on Friday, India’s top 100 companies in terms of market valuation have generated a record Rs 38.9 lakh crore wealth in the past five years.
At the second spot was private-sector lender HDFC Bank with Rs 2.31 lakh crore. Mukesh Ambani’s Reliance Industries is at the third spot, creating wealth worth Rs 1.89 lakh crore. ITC (Rs 1.59 lakh crore) and Maruti Suzuki (Rs 1.41 lakh crore) took the fourth and fifth places, respectively.
The study ranks 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.
In the fastest wealth creator category, Ajanta Pharma stood first for the third time in a row, with 2012 to 2017 stock price multiplier of 29 times (96 per cent CAGR).
“This reinforces the point that wealth creation happens in all kinds of market conditions. So, investors are better off focusing on which stocks to invest in, rather than timing the markets,” the study noted.
Sector-wise, banking and finance took the first spot as for creating wealth worth Rs 9.34 lakh crore during 2012-2017.
The banking sector replaced consumer and retail industry, which emerged at the second place this time with wealth creation amounting to Rs 6.9 lakh crore.
Notably, wealth to the tune of Rs 6 lakh crore was destroyed during the five-year period, owing to cyclical downturn. Metals/mining, trading, banking and finance, construction and real estate as well as utilities were the top five wealth destroying sectors.