RIL tops wealth creators' list in FY05-10 : Study

MUMBAI: Reliance Industries (RIL) has been the biggest wealth creator during the period between FY05 and FY10, realty firm Unitech and two-wheeler major Hero Honda have been the fastest and the most consistent wealth creators, respectively, during the same period, according to a study by broking firm Motilal Oswal Services.

RIL’s share price has grown at a compounded annual rate of 37.1% over the past five years and Unitech’s by 95%. But Unitech’s leadership could be under threat, goingforward ,thebrokingfirmsaid,citingdifficulties in the real estate sector and high valuations.

Hero Honda’s share price has grown at a compounded annual rate of 33.9% over the past 10 years, the study said, adding that wealth creation in India was getting dispersed. “Theshare oftop-10 wealthcreators is on a secular declining trend — from 76% in FY03 to as low as 41% in FY10,” the study said.

The broking firm expects Indian shares to stay range-bound in 2011, citing valuations , tight liquidity and corporate governance as the key reasons.