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

Over the past five years, several businesses have enhanced their market value amid a topsy-turvy economy. ET Wealth delves into Motilal Oswal’s 27th Annual Wealth Creation Study to find the stocks that stood out.

Wealth created in past five years is highest ever
The pace of wealth creation at 28% CAGR is the highest in the past 8 years, beating BSE Sensex CAGR of 15%.

Reliance Ind is biggest wealth creator fourth time in a row
TCS, Infosys, HDFC Bank and Bajaj Finance made up the top 5 wealth creators.

Reliance Ind repeats past dominance
This takes RIL’s overall No.1 tally to 9 in the last 16 5-year study periods.

Adani Trans is fastest wealth creator, again
Rs.10 lakh invested in 2017 in these top 10 companies equally would be worth Rs.2.1 crore today.

Most of these stocks were reasonably valued in 2017, especially relative to their growth prospects. As previous studies show, such stocks are available in all market conditions.

Adani Enterprises most consistent wealth creator too
It has outperformed the Sensex in all of the past 5 years, and has highest price CAGR of 97%.

Only 13 of the 100 wealth creators have outperformed in each of the 5 years. This is where consistency matters. The key is in identifying stocks that not only outperform point-to-point, but in the interim as well.

2 Adani cos among best all-rounders
Titan in list despite not being in top 10 in any individual category.

Six of the top 10 all-round wealth creators are also among top 10 consistent wealth creators. Thus, consistency is the clincher.
Note: All-round wealth creators based on the summation of ranks, under each of the 3 categories – Biggest, Fastest and Consistent. Where scores are tied, the stock price CAGR decides the all-round rank.

Technology on top of list after 8 years
Chemicals/fertilisers in latest list with 3% share of all wealth created.

The tech sector saw a great run in the past 5 years on the back of huge orders. However, given global slowdown, IT spend has moderated.

PSU show becomes weaker
Wealth creation by PSUs over 2017-22 is the worst ever to date.

The only wealth creating PSU in past five years is Gujarat Gas.