Adani Green tops as fastest wealth creator; Adani Enterprises named best all-rounder: Motilal Oswal study

Two Adani group companies — Adani Green and Adani Enterprises — proved to be one of the most consistent and fastest wealth creators among India’s top 100 companies over the last five years. This comes even after two major setbacks in the form of Hindenburg and bribery allegations in the past two years.

According to a study on annual wealth creation by Motilal Oswal, Adani Green emerged as the fastest wealth creator with a 2019-24 price CAGR of 118%. Two more Adani companies have made it to the list of top 10 fastest wealth creators — Adani Enterprises and Adani Power.

In 2019, there were 2,852 mini-companies (i.e. ranked beyond 250). Of these, only Adani Green moved to the mega category by 2024.

Adani Green Energy is India’s leading renewable energy solutions partner, which develops, owns, and operates utility-scale grid-connected solar, wind and hybrid renewable power plants.

The other fastest wealth creators over this five-year period include Dixon Technologies, Linde India, Varun Beverages.

Also Read: Sleeping giant HDFC Bank shares wake up with Rs 3 lakh crore rallyAn investment of Rs 10 lakh in these top 10 fastest wealth creators in 2019 would be worth Rs 1.75 crore in 2024, a return CAGR of 77%. This compares with just 14% return CAGR for Nifty 50.The strong performance of Adani Green along with Adani Power and Adani Energy Solutions lifted the overall return profile of the utilities stocks, typically considered a laggard sector. Utilities overall emerged as the third largest wealth -creating sector.

According to the report, nine of the top 10 fastest wealth creators have seen massive P/E re-rating. Further, 5 of the top 10 had P/E in excess of 100x.

“Though partly justified by robust earnings growth, this is still a case of too much money chasing too few stocks. The current P/E of Nifty Midcap 100 is 44x whereas that of the Nifty Small Cap 100 is 36x. This clearly merits caution,” it said.

Adani Group’s flagship company Adani Enterprises emerged as the best all-round wealth creator in Motilal Oswal’s wealth creation study.

The report defines all-round wealth creators based on the summation of ranks, under each of the three categories – biggest, fastest and consistent. Where the scores are tied, the stock price CAGR decides the all-round rank. Based on this criteria, Adani Enterprises has emerged as the clear winner.