Insights

Stocks that created the most wealth in the last five years

December 14, 2012 . Vidya Bala

The last five years have not been easy to sail in the stock market waters. At 19,000 levels the Sensex is in fact lower than what it was five years ago. Yet, right stock picking does deliver. In a Wealth Creation study (2007-12) by Motilal Oswal Securities, the firm has a list of top ten wealth creators in the last five years. Wealth creators are those companies that managed to expand their stock’s market capitalization (adjusted for corporate events such as fresh issue, mergers, buybacks and so on) the most.

Interestingly, none of the big oil and gas plays, Reliance Industries or ONGC topped this list. These stocks were eliminated as they under performed the market in terms of stock returns.

If that were the list of wealth creators, you may be more interested to know which stocks generated wealth the fastest. Motilal Oswal has a top ten in this category with stocks such as TTK Prestige multiplying their stock price by 24 times in the last five years.

In the 100 wealth creating companies that Motital Oswal analysed, sound earnings growth was the key behind stock market performance. Over the period 2007-12, these companies expanded their earnings by 21 per cent compounded annually s against just 9 per cent growth in earnings of the benchmark Sensex.

 

Needless to say, there were wealth destroyers over the period discussed. Stocks from sectors such as telecom, construction and real estate, technology as well as capital goods saw the maximum wealth destroyed, in terms of erosion of market cap. Here is a list:

 

All data sourced from Motial Oswal Securities’ Wealth Creation Study.

16 thoughts on “Stocks that created the most wealth in the last five years

    1. Ravindrakumar, you may pl. follow our Equity research head – Krishnakumar’s – calls in this blog and in our monthly newsletter, besides the weekly webinar he conducts on Fridays for day trading guide. Vidya

  1. I really appreciated by Mr. bala , & by motilal oswal research team. Your suggessation are very good. I am interested regular mails from your side of equity & stocks & mutual funds.
    Congratulations.

  2. Hi,

    I want to invest through SIP, my Age is 26, I am ready to Invest monthly 2k on SIP. i am looking for wealth creator. I am looking for another 5-7 yrs term. i would like to create 15 lacs. please suggest me best Mutual fund. i m interested to invest in Equities too through SIP.

  3. I really appreciated by Mr. bala , & by motilal oswal research team. Your suggessation are very good. I am interested regular mails from your side of equity & stocks & mutual funds.
    Congratulations.

    1. Ravindrakumar, you may pl. follow our Equity research head – Krishnakumar’s – calls in this blog and in our monthly newsletter, besides the weekly webinar he conducts on Fridays for day trading guide. Vidya

  4. Hi,

    I want to invest through SIP, my Age is 26, I am ready to Invest monthly 2k on SIP. i am looking for wealth creator. I am looking for another 5-7 yrs term. i would like to create 15 lacs. please suggest me best Mutual fund. i m interested to invest in Equities too through SIP.

    1. Arun, kindly mail FundsIndia – contact@fundsindia.com providing details about your investment requirement. If you are a fundsindia client, you can also book an appointment in the website to talk to our advisory team. Vidya

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