Stocks that made the most money for you over last 5 years: Study

Motilal Oswal identifies Wealth Creators by calculating the difference in market capitalisation over a period of last five years, after adjusting for equity dilution.

It ranks the top 100 companies in descending order of absolute wealth created, subject to the company's stock price at least outperforming the benchmark index (BSE Sensex).

These top 100 Wealth Creators are also ranked according to speed (price CAGR during period under study). Rs 1 trillion is equal to Rs 1 lakh crore and Rs 1 billion is Rs 100 crore.


The wealth created between 2012-17 is the highest ever

Wealth is being created faster but outperformance is lowest in five years
Pace of wealth creation during 2012-17 was robust at 22% CAGR, but outperformance at 11% is lowest since 2006-11.

Share of top 10 wealth creators is continuously declining
This suggests rising democratization of wealth creation in the stock market

Fastest wealth creators were supported by low initial valuation
*Eicher Motors is among the top 10 Fastest Wealth Creators for the last six studies, and Bajaj Finance in the last four.

* 5 of the 10 stocks were trading at single-digit PE in 2012.

Returns from the top 10 consistent wealth creators have been falling
* 8 of the top 10 most consistent wealth creators are consumer facing companies, with Bosch and Cummins India the only exceptions

* Valuations have mostly soared as earnings visibility remains strong. Consistent wealth creators are those appearing among top 100 Wealth Creators in each of the last 10 studies.

Level of wealth destruction is sharply down
This is primarily owing to a broader market rally during the period under consideration.

Banking & finance top contributor after 4 years
* The sector has dethroned consumer/retail as top wealth creator, led by private banks & NBFCs.

* Even as banking and finance emerged the biggest wealth creating sector, not a single state-owned bank features in the list . LIC Housing Finance and Rural Electrification Corporation are the only face-savers in the NBFC space.

Figures show wealth created in Rs billion