INSUBCONTINENT EXCLUSIVE:
Company have earned this tag with a 33 per cent price growth CAGR over last 10 years (2008-18)
A 30 per cent surge annually over the five-year period has earned Indiabulls Ventures stock the fastest wealth creator tag
This can be called the equivalent of five-time F1 title holder Lewis Hamilton
HDFC Bank has emerged as the Hulk of D-Street
The private lender has toppled TCS to become the biggest wealth creation (in value terms) this year.
These are the findings of the annual
wealth creation study published by Motilal Oswal Securities
Raamdeo Agrawal, Joint Managing Director, has been publishing this study every year for last 23 years.
Five years was the longest run of the
top wealth creator Reliance Industries from 2007 to 2011 and TCS from 2013 to 2017
Overall, top 100 wealth creators on Dalal Street created Rs 44.90 lakh crore during 2013-18
the past four study periods, benchmark indices have delivered muted 5-year return CAGR of 10-12 per cent
Yet, Wealth Creation has been robust in all these periods, reinforcing our pet take on market timing i.e
developed economies to emerging economies)
In banking, value is relentlessly migrating from state-owned banks to private banks
delivery a return of 97 per cent annually over 2013-2018.
It is followed by Dalmia Bharat, TVS Motor, HEG, Sterlite Technologies and Bajaj
Finance, which delivered 73-81 per cent CAGR over the same period
the fastest wealth creators have seen massive valuation re-rating
In some cases, their P/Es may have even reached unsustainable levels, leaving no margin of safety
In such situations of over-valuation, selling the stock(s) is the best way to lock in the supernormal returns
most consistent wealth creator by virtue of appearing among top 100 wealth creators in each of the last 10 studies
The stock has recorded the highest Price CAGR of 33 per cent over the 10-year period 2008 to 2018, fractionally ahead of Godrej Consumer
All the top 10 consistent performers are consumer-facing companies.
Note: Motilal Oswal Securities ranks the top 100 companies in descending
order of absolute Wealth Created, subject to the company's stock price at least outperforming the benchmark Sensex
These top 100 wealth creators are also ranked according to speed (i.e
price CAGR during the period under study).
