HDFC Bank emerges as biggest Wealth Creator

HDFC Bank has emerged as the biggest Wealth Creator over 2013-18. Its Wealth Created is close to Rs 3.2 lakh crore, according to Motilal Oswal 23rd Annual Wealth Creation Study 2018.

The study analyses the top 100 wealth creating companies during the period 2013-18. It identifies the Fastest, Biggest and Most Consistent wealth creators.

After HDFC Bank, Reliance Industries is emerged as No 2 with Rs 3 lakh crore of Wealth Created. Indiabulls Ventures has emerged as the Fastest Wealth Creator over 2013-18 with stock return at 97% CAGR.

Eicher Motors is among the top 10 Fastest Wealth Creators in the last 7 studies, and Bajaj Finance in the last 5. Bajaj Finance has the unique distinction of being in the top 10 Biggest as well as Fastest Wealth Creators, the study pointed out.

Titan Company is the Most Consistent Wealth Creator as it appeared among top 100 Wealth Creators in each of the last 10 studies; and recording the highest Price CAGR of 33% over the 10-year period 2008 to 2018, fractionally ahead of Godrej Consumer.

Also, financials has emerged as the country’s biggest Wealth Creating sector over 2013-18 for the second consecutive year. In this study period, the financials sector has the unusual distinction of being the biggest Wealth Creator (thanks to private banks and NBFCs) and the biggest Wealth Destroyer (thanks to state-owned banks).

PSUs’ (public sector undertakings) Wealth Creation performance remains weak during 2013-18 as the number of PSUs in the top 100 Wealth Creators is only 11, and also Wealth Created by these 11 PSUs is only 9% of the total. However, this is higher than 2-4% in the recent previous studies, suggesting early signs of potential revival in PSU fortunes.

Meanwhile, Top 100 Wealth Creators created Rs 44.9 lakh crore wealth during 2013-18. This is the highest ever quantum of Wealth Created, the study said. During 2013-18, Sensex CAGR was only 12%, but pace of Wealth Creation was healthy at 23% CAGR. This reinforces the point that Wealth Creation happens in all kinds of market conditions, it added.