Fri, 09 Dec 2022 10:36 AM IST
ADANI Enterprises and Adani Transmission have emerged as the two biggest wealth creators for 2022 so far dethroning Reliance Industries. The top 100 companies created a massive Rs 92.2 lakh crore (approximately $1.12 trillion) of wealth, according to the 27th Motilal Oswal Wealth Creation Study.
The Gautam Adani group companies have been rallying to unprecedented peaks in the year as the group acquired several assets and diversified into newer areas.
The rally was so high that on September 16 Gautam Adani became the second richest person in the world, albeit for a brief time only, with a net worth of $155.7 billion – second only to Elon Musk according to the Forbes real-time billionaires list. The spike was a reflection of the stocks of Adani Enterprises, Adani Ports and Adani Transmission hitting record highs on that day.
Adani, who owns 75 per cent each in these three companies, added more than $70 billion to his fortune in 2022 in mid-September alone.
In February, he overtook Mukesh Ambani as the richest Asian and left behind Microsoft's Bill Gates as the world's fourth-richest person last month. He also owns 37 per cent of Adani Total Gas, 65 per cent of Adani Ports & Special Economic Zone, and 61 per cent of Adani Green Energy.
As against this, Ambani was pushed to the distant eighth slot with a net worth of $92.3 billion. Nevertheless, Reliance Industries emerged as the largest wealth creator during the five-year period ending March 2022, reported the leading financial services company.
Reliance Industries, Adani Transmission and Adani Enterprises are the biggest, fastest and the most consistent wealth creators, respectively between 2017 and 2022. Adani Enterprises and Adani Transmission are also the top all-round wealth creators, the report said.
The technology sector has been the largest wealth creating sector between 2017 and 2022, followed by the financial sector, which should continue to dominate wealth creation in the foreseeable future, the report added.
The study is based on the analyses of the top 100 wealth creating companies during the 2017-22 and the wealth created is calculated as change in the market capitalisation of these companies between 2017 and 2022, duly adjusted for corporate events such as mergers, de-mergers, fresh issuance of capital, buyback, etc.
These companies created Rs 92.2 lakh crore of wealth during this period, which is the highest ever so far, the report said.
This is for the fourth time in a row that Reliance has emerged as the largest wealth creator over 2017-22. This takes Reliance's overall No.1 tally to 9 in the last 16 five-year study periods.
While TCS, Infosys and HDFC Bank remain among the top 5 wealth creators, Adani Transmission is the fastest wealth creator for the second time in a row with a CAGR (Compounded Annual Growth Rate) of 106 per cent, and Adani Enterprises is the most consistent wealth creator for the second successive year.
Over 2017-22, Adani Enterprises has emerged as the most consistent wealth creator, outperforming the Sensex in all the last five years, and offering the highest price CAGR of 97 per cent. The company is also the best all-round wealth creator, followed by group company Adani Transmission.
The technology sector has emerged as the largest wealth creator after a gap of eight years, while the public sector turned out to be the worst. The only public sector unit that created wealth is Gujarat Gas, but its contribution is just 0.3 per cent of the total wealth created.
Total wealth destroyed during 2017-22 was Rs 14 lakh crore, 16 per cent of the total wealth created by top 100 companies. This is sharply below the previous pandemic period 2015-20 of study. Four of the top 10 wealth destroying companies are also public sector units.