Private sector lender HDFC Bank shares have emerged as the biggest wealth creators for investors, ahead of Reliance Industries and TCS, according to a report.
Private sector lender HDFC Bank shares have emerged as the biggest wealth creators for investors, ahead of Reliance Industries and TCS, according to a report. In its 23rd wealth creation study, Motilal Oswal noted that HDFC Bank has come out as the Biggest Wealth Creator for the first time ever. “After consistently hugging the second and third rank for the last 6 studies, HDFC Bank has finally broken through to emerge the biggest Wealth Creator over 2013-18,” Motilal Oswal’s 23rd Wealth Creation Study noted.
HDFC Bank has created Rs 3,247 billion wealth in the last 5 years, while billionaire Mukesh Ambani-led Reliance Industries has created Rs 3,094 billion in the same period. India’s largest IT behemoth TCS grabbed the third spot creation Rs 2,532 billion. Automaker Maruti Suzuki came next on the list of biggest wealth creators, increasing investor wealth by Rs 2,308 billion.
FMCG bellwether HUL ranked 5th on the list creating Rs 1,883 billion in the last five year period. While HDFC Bank has come out on top as the biggest wealth creator, Indiabulls Ventures turned out to be the fastest. “Indiabulls Ventures has emerged the Fastest Wealth Creator, with 2013-18 stock price multiplier of 30x (97% CAGR),” the report noted. To put things into perspective, Rs 100,000 invested equally in 2013 in top 10 Fastest Wealth Creators would have grown to almost Rs 17 lakh in 2018, delivering a return CAGR of 75%. Over the same period, INR 100,000 invested in the Sensex would have grown to only INR 175,000 (12% return CAGR), noted the report.
Interestingly, Titan Company has emerged the most consistent wealth creator in the last five years. Titan Company has appeared among top 100 wealth creators in each of the last 10 studies. Further, the stock has also recorded the highest price CAGR of 33% over the 10-year period 2008 to 2018, fractionally ahead of Godrej Consumer.