Capri Global, Varun Beverages top list of consistent wealth creators during 2018-2023: Motilal Oswal study

Do you have Capri Global, Varun Beverages, Grindwell Norton or ICICI Bank shares in your portfolio? These four stocks were the top  consistent wealth creators from 2018 to 2023, brokerage Motilal Oswal Financial Services found in a study. Capri Global—which led the list with outperformance in each of the five years—delivered a price CAGR of 50 per cent during the period, according to the 28th annual Motilal Oswal Wealth Creation report.

According to the report, the top 100 wealth creators of India Inc accounted for the generation of Rs 70.5 lakh crore during the five-year period, at a CAGR of 21 per cent which was much higher than the 12.3 per cent CAGR of the headline index Sensex.

The brokerage defined consistent wealth creators based on the number of years the stock had outperformed the 30-scrip benchmark index in each of the five years.

Wealth creation study reinforces market strategy 'forget markets, think stocks'

According to the report, benchmark indices have delivered muted returns ranging from 5 per cent to 15 per cent for the past nine successive study periods. Still, the top wealth creators have maintained their track record of 10-15 per cent outperformance over the benchmark.

HDFC Bank absent in the top 10 wealth creators list

For the first time in many years, the country’s largest private sector lender HDFC Bank did not feature in the top 10 wealth creators list.  In fact, it did not feature in the study at all as with a price CAGR of 11 per cent, the HDFC Bank stock underperformed the Sensex though it created wealth to the tune of Rs 3,71,900 crore. “However, given HDFC Bank’s inherent strengths, it would be no surprise if it regains its pride of place in the next year’s study,” Motilal Oswal Financial Services said.

TCS, Infosys among top five wealth creators

IT giants TCS and Infosys consistently ranked in the list of top five wealth creators.