According to Motilal Oswal’s 30th Annual Wealth Creation Study, released earlier this week, the five-year period from 2020 to 2025 has delivered the highest wealth creation in the study’s three-decade history.
The study, led by Raamdeo Agrawal, Chairman, Motilal Oswal Group, examines India’s evolving wealth creation landscape. This year’s theme, ‘India – The Multi-Trillion Dollar Opportunity – Compounding Economy, Compounding Stocks,’ is an exploration of how India’s economic compounding is set to create exponential opportunities for investors, businesses, and capital allocators.
However, the report also highlights a contrasting trend: several stocks—predominantly from consumer-facing sectors—have emerged as wealth destroyers during this period.
The total wealth destroyed, though, remains lowest in the last 17 years of the study at ₹66,600 crore, a mere 0.4 % of the total wealth created by the top 100 companies. Only 24 of the top 500 companies destroyed wealth, the Motilal Oswal study stated.
The top 10 wealth-destroying stocks accounted for as high as 82% of the total wealth destroyed, and interestingly, all belonged to consumer-facing businesses.
Top 10 wealth destroyers
The list includes several well-tracked stocks like Bandhan Bank, Vodafone Idea, Zee Entertainment, PVR Inox and Future Consumer.
Two stocks, namely Rajesh Exports and Whirlpool India, emerged as top wealth destroyers, wiping off over ₹10,000 crore of investor wealth in five years.
Rajesh Exports, a gold refiner, manufacturer, and exporter of gold products, has seen its stock decline 60% in the last five years. On a CAGR basis, it has lost 19%. Whirlpool India — manufacturer of electronics goods — has seen a -11% CAGR in these five years with the stock falling 56% in absolute terms.
Bandhan Bank followed suit as its shares witnessed a total CAGR of -6%, wiping off ₹8400 crore of investor wealth.
Beleaguered telecom firm Vodafone Idea, meanwhile, has seen a ₹7100 crore wealth erosion. This is despite an over 50% rally in the last six months alone. It’s the only stock in the list having a positive CAGR of 17%.
Dhani Services was the fifth largest wealth destroyer in the list, eroding ₹4400 crore during this period. Its CAGR is at -12%.
Meanwhile, the bottom five on the list included Relaxo Footwear, PVR Inox, Spandana Sphoorty, Zee Entertainment and Future Consumer, shedding ₹14,100 crore cumulatively.
Among the top sectors, consumer and retail topped the list, with ₹29600 crore wealth destruction, forming 44% of the total share. Meanwhile, financials and telecom followed. IT, realty, media and capital goods were other sectors that fared poorly.
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