Thematic Study | December 2020
25 questions, 25 frameworks
HIGHLIGHTS
The QGLP Checklist
Time is a friend of good companies and enemy of bad companies. In 25 years,
successful companies grow to unimaginable levels in sales, profits and market cap.
Of the top 500 companies listed in 1995, only 100 companies have outperformed the
benchmark over the next 25 years.
Stock returns are slaves of earnings power and growth. In the very long run, valuations
matter less.
The future always holds a lot more promise. Over 50% of current market cap is made
up of listings post 1995.
Equity investing is complex. A checklist is an excellent tool to bring discipline to the
process.
The 25 questions here and the 25 related frameworks are a good starting point for an
investor to create their own checklist over time.
“In my nearly fifty years of experience in Wall Street, I’ve found that I know less and less about
what the stock market is going to do but I know more and more about what investors ought to
do, and that’s a pretty vital change in attitude.”
— Benjamin Graham
TOP 10 WEALTH CREATORS (1995-2020)
FASTEST
Company
Infosys
Pidilite Inds
Eicher Motors
Shree Cement
Berger Paints
Honeywell Auto
Sun Pharma
Bajaj Finance
Motherson Sumi
Britannia Inds
25-year
Price
CAGR
30%
25%
25%
25%
24%
24%
23%
23%
23%
22%
BIGGEST
Company
Reliance Industries
Hind. Unilever
Infosys
HDFC
Kotak Mahindra
ITC
Asian Paints
Nestle India
Bajaj Finance
Larsen & Toubro
NWC
(INR b)
6,307
4,893
2,700
2,475
2,293
1,945
1,586
1,549
1,162
998
CONSISTENT
Company
Kotak Mahindra
Berger Paints
HDFC
Pidilite Inds
Shree Cement
Honeywell Auto
Motherson Sumi
Asian Paints
Dabur India
Sun Pharma
Consistency
Count
21
20
20
19
19
19
19
19
19
18
25-year
Price
CAGR
21%
24%
19%
25%
25%
24%
23%
22%
20%
23%
ALL-ROUND
Company
Kotak Mahindra
Pidilite Inds
Asian Paints
Shree Cement
Berger Paints
Sun Pharma
HDFC
Bajaj Finance
Dabur India
Eicher Motors
Total 1995-2020
of
Price
Ranks CAGR
20
21%
21
25%
26
22%
28
25%
28
24%
29
23%
29
19%
32
23%
43
20%
44
25%
Raamdeo Agrawal
(Raamdeo@MotilalOswal.com) /
Shrinath Mithanthaya
(ShrinathM@MotilalOswal.com)
We thank Mr Dhruv Mehta (Dhruv@SapientWealth.co.in) for his invaluable contribution to this report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Investors are advised to refer through important disclosures made at the last page of the Research Report.
 Motilal Oswal Financial Services
25th Annual Wealth Creation Study, 2020
Motilal Oswal 25th Annual Wealth Creation Study
Page
Celebrating 25 Years of Wealth Creation Studies!
........................................ 1
Wealth Creation 1995 to 2020:
Findings ................................................... 2-16
25 for 25:
Shortlisting Wealth Creators for the next 25 years .........16-17
Appendix 1:
The 100 Fastest Wealth Creators ................................ 18-19
Appendix 2:
The 100 Biggest Wealth Creators ................................ 20-21
Appendix 3:
The 100 Consistent Wealth Creators ............................ 22-23
Appendix 4:
The 100 All-round Wealth Creators ............................. 24-25
Appendix 5:
The 100 Wealth Creators (alphabetical) ...................... 26-27
Theme 2021:
The QGLP Checklist: 25 questions, 25 frameworks ........... 28-85
Wealth Creation 2015-20:
Findings ....................................................... 86-100
Appendix 5:
The 100 Biggest Wealth Creators ............................ 101-102
Appendix 6:
The 100 Fastest Wealth Creators ............................ 103-104
Appendix 7:
The 100 Wealth Creators (alphabetical) ......................... 105
The Wealth Creation Study Journey:
Summary of 24 past studies ... 106-113
Abbreviations and Terms used in this report
Abbreviation / Term
1995, 2015, 2020, etc
Avg
CAGR
L to P / P to L
INR bn
Price CAGR
WC
Wealth Created
Description
Reference to years for India are financial year ending March, unless otherwise stated
Average
Compound Annual Growth Rate
Loss to Profit / Profit to Loss. In such cases, calculation of PAT CAGR is not possible
Indian Rupees in billion
In the case of aggregates, Price CAGR refers to Market Cap CAGR
Wealth Created
Increase in Market Capitalization over the last 5 years, duly adjusted for corporate
actions such as fresh equity issuance, mergers, demergers, share buybacks, etc.
Note:
Capitaline database has been used for this study. Source of all exhibits is MOFSL analysis, unless otherwise stated
 Motilal Oswal Financial Services
25th Annual Wealth Creation Study, 2020
Celebrating 25 years of Wealth Creation Studies!
E
VERY YEAR, for the past 25 years, we publish the Motilal Oswal Annual Wealth Creation Study.
The studies have two main parts –
1. Analysis of Wealth Created in the stock markets over the past 5 years, and
2. Theme study.
Over these 25 years, we have covered a wide range of themes –
Good businesses which get better
Competitive strengths of Wealth Creators
How to value growth
Characteristics of Multi-baggers
Components of value
Role of Interest rates
Commodity cycles
Consistent Wealth Creators
Terms of Trade
Great, Good, Gruesome, Winner Categories, Category Winners
Blue Chip Investing
Economic Moat
100x: The power of growth
Mid-to-Mega: The power of leadership
Focused Investing: The power of allocation
CAP & GAP: The power of longevity
Valuation Insights: What works, what doesn’t
Management Integrity: Understanding sharp practices
Towards the end of the report, we present the essence and highlights of all previous 24 studies,
including links to the full reports for your easy reference. These studies and the various
frameworks covered therein have led to Motilal Oswal’s investment philosophy,
QGLP – Quality,
Growth, Longevity, at reasonable Price
(more on this in later pages).
We start the report with the key findings of Wealth Creation data from 1995 to 2020. We have 4
categories – Fastest, Biggest, Consistent and All-round Wealth Creators. The full lists are given in
pages 18-27. We follow this with the current year’s special theme study titled “The
QGLP
Checklist: 25 questions, 25 frameworks”
in pages 28-85. Finally, we cover the regular feature of
Wealth Creation data from 2015 to 2020.
We hope you find this edition as exciting as we feel bringing this to you.
Happy reading and happy Wealth Creation!
December 2020
1
 Motilal Oswal Financial Services
25th Annual Wealth Creation Study, 2020
Wealth Creation
(1995-2020):
Key findings
December 2020
2
 Motilal Oswal Financial Services
25th Annual Wealth Creation Study, 2020
25 years of Wealth Creation: 1995 to 2020
Objective, Concept & Methodology
Objective
The foundation of Wealth Creation is to buy businesses at a price substantially lower than their
“intrinsic value” or “expected value”. The lower the market value compared to the intrinsic value,
the higher is the margin of safety. Every year, as in the past 25 years, we endeavor to cull out the
characteristics of businesses that create value for their shareholders.
As Phil Fisher says, “It
seems logical that even before thinking of buying any common stock, the
first step is to see how money has been most successfully made in the past.”
Our Wealth Creation
Studies are attempts to study the past as a guide to the future, and gain insights into the various
dynamics of stock market investing.
Concept & Methodology
Wealth Creation is the process by which a company enhances the market value of the capital
entrusted to it by its shareholders. It is a basic measure of success for any commercial venture.
For listed companies, we define Wealth Created as the difference in market capitalization, duly
adjusted for fresh equity issuances. (Note: For the 25-year study, we have considered Price CAGR,
and not total return on account of major corporate events such as demergers. Also, due to data
reliability, we have used PAT CAGR whereas EPS CAGR would have been ideal.)
Every year, we study the Wealth Creators of previous 5 years. But to commemorate the 25
th
Study, we have also looked at Wealth Creators over the 25 years, 1995 to 2020. For continuity
sake, the 5-year Wealth Creation data (i.e. 2015-20) is presented page 86 onwards.
For the 25-year study, our starting point is the top 500 companies in 1995 ranked by market
capitalization. Our key criteria for calling a company a Wealth Creator is that it should have
outperformed the benchmark index, in our case, BSE Sensex.
Over 1995 to 2020, the Sensex rose from 3,200 levels in March 1995 to 29,500 by March 2020
i.e. a CAGR of 9.2%. Interestingly, exactly 100 companies delivered returns higher than 9.2%. We
call these 100 the
Fastest Wealth Creators.
We then sort these companies in descending order
of absolute Wealth Created to decide the
Biggest Wealth Creators.
The third category is what we have called the
Consistent Wealth Creators.
From 1995 to 2020,
there are 23 three-year rolling periods i.e. 1995-98, 1996-99, 1997-2000, and so on up to 2017-
20. To determine Consistent Wealth Creators, we rank the companies based on the highest
number of rolling 3-year periods in which the companies outperform the corresponding Sensex
performance. Where the number is same, higher the Price CAGR, higher is the rank. Finally, we
combine the ranks of Fastest, Biggest and Consistent Wealth Creators to arrive at the
Best All-
round Wealth Creators.
This is followed by some interesting data points garnered from 25 years of India’s corporate
financial history.
December 2020
3
 Motilal Oswal Financial Services
25th Annual Wealth Creation Study, 2020
Infosys is the Fastest Wealth Creator over the last 25 years
Between 1995 and 2020,
Infosys
clocked a robust Price CAGR of 30% to emerge as the Fastest
Wealth Creator. This was backed by 25-year PAT CAGR of 33%.
The average market cap of the top 25 Fastest Wealth Creators was INR 4 billion in 1995, which
stood at over INR 750 billion in 2020.
INR 1 mn invested equally in these 25 stocks in 1995 would have grown to INR 162 mn in
2020, delivering 25-year CAGR of 23%.
Top 25 Fastest Wealth Creators (1995 to 2020)
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Company
Infosys
Pidilite Inds
Eicher Motors
Shree Cement
Berger Paints
Honeywell Auto
Sun Pharma
Bajaj Finance
Motherson Sumi
Britannia Inds
Asian Paints
Balkrishna Inds
Titan Company
Kotak Mahindra Bank
Lupin
Coromandel Intl
CRISIL
3M India
Aarti Industries
Dabur India
Amara Raja Batteries
HDFC
Hindustan Zinc
Hero Motocorp
Kansai Nerolac
TOTAL OF ABOVE
TOTAL OF 100
25-year Price
Multiple
CAGR
30%
25%
25%
25%
24%
24%
23%
23%
23%
22%
22%
22%
22%
21%
20%
20%
20%
20%
20%
20%
19%
19%
19%
19%
19%
23%
17%
688
258
255
240
239
219
180
172
161
142
139
136
135
117
103
101
97
96
95
93
84
82
74
71
71
185
53
25-year
PAT CAGR
33%
20%
23%
19%
20%
22%
23%
26%
27%
20%
18%
21%
18%
22%
P to L
19%
18%
22%
18%
19%
20%
22%
19%
22%
16%
22%
17%
NWC*
(INR bn)
2,700
686
355
608
480
228
828
1,162
163
640
1,586
152
821
2,293
255
156
88
211
124
783
81
2,475
642
314
205
18,038
43,115
Mkt Cap (INR bn)
2020
1995
2,727
3
689
3
357
1
634
2
483
1
229
1
845
3
1,333
2
193
1
647
5
1,599
11
153
1
829
6
2,480
9
267
2
159
1
91
1
213
2
133
1
796
8
82
1
2,824
20
656
9
318
4
208
2
18,945
103
46,729
887
P/E (x)
2020
1995
17
26
60
20
20
10
41
9
75
12
47
24
21
16
25
14
17
26
46
32
59
27
19
15
55
24
29
14
-57
34
15
9
27
14
66
106
25
12
52
42
13
10
13
14
10
11
11
23
40
18
23
17
22
20
RoE
2020
25%
26%
18%
12%
24%
23%
9%
16%
10%
32%
27%
16%
23%
13%
-4%
25%
29%
18%
18%
23%
18%
17%
17%
21%
14%
17%
12%
1995
21%
13%
42%
24%
20%
19%
23%
19%
21%
19%
26%
16%
18%
26%
15%
10%
24%
8%
23%
14%
49%
17%
10%
26%
25%
17%
16%
* NWC – Net Wealth Created
Reliance is the Biggest Wealth Creator over 25 years
Between 1995 and 2020,
Reliance Industries
created wealth of INR 6.3 trillion to emerge the
Biggest Wealth Creator. It is significantly ahead of the second ranked
Hindustan Unilever
(INR 4.9 trillion of Wealth Created).
Infosys
and
Bajaj Finance
have a creditable performance of being among the top 10, both in
terms of Fastest and Biggest Wealth Creators.
December 2020
4
 Motilal Oswal Financial Services
25th Annual Wealth Creation Study, 2020
Top 25 Biggest Wealth Creators (1995 to 2020)
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Company
Reliance Industries
Hindustan Unilever
Infosys
HDFC
Kotak Mahindra Bank
ITC
Asian Paints
Nestle India
Bajaj Finance
Larsen & Toubro
State Bank of India
Sun Pharma
Titan Company
Dabur India
Pidilite Inds
Hindustan Zinc
Britannia Inds
BPCL
Shree Cement
Dr Reddy's Labs
Berger Paints
Siemens
Eicher Motors
P&G Hygiene
Torrent Pharma
TOTAL OF ABOVE
TOTAL OF 100
NWC
(INR bn)
6,307
4,893
2,700
2,475
2,293
1,945
1,586
1,549
1,162
998
901
828
821
783
686
642
640
621
608
504
480
380
355
332
328
34,821
43,115
25-year
25-year Market Cap (INR bn)
Price CAGR PAT CAGR
2020
1995
16%
16%
7,052
120
16%
16%
4,975
82
30%
33%
2,727
3
19%
22%
2,824
20
21%
22%
2,480
9
14%
18%
2,114
69
22%
18%
1,599
11
18%
17%
1,572
23
23%
26%
1,333
2
14%
15%
1,133
59
10%
13%
1,758
83
23%
23%
845
3
22%
18%
829
6
20%
19%
796
8
25%
20%
689
3
19%
19%
656
9
22%
20%
647
5
11%
11%
686
44
25%
19%
634
2
15%
17%
518
9
24%
20%
483
1
13%
15%
396
15
25%
23%
357
1
17%
15%
339
7
18%
16%
334
5
18%
17%
37,775
602
17%
17%
46,729
887
P/E (x)
2020
1995
16
12
72
44
17
26
13
14
29
14
14
31
59
27
80
57
25
14
12
21
11
12
21
16
55
24
52
42
60
20
10
11
46
32
16
15
41
9
26
23
75
12
37
42
20
10
78
50
33
23
21
18
22
20
RoE
2020
9%
84%
25%
17%
13%
24%
27%
102%
16%
14%
6%
9%
23%
23%
26%
17%
32%
11%
12%
13%
24%
12%
18%
38%
21%
13%
12%
1995
14%
26%
21%
17%
26%
26%
26%
18%
19%
13%
15%
23%
18%
14%
13%
10%
19%
21%
24%
16%
20%
13%
42%
12%
21%
16%
16%
* NWC – Net Wealth Created
Kotak Mahindra Bank is the most Consistent Wealth Creator over 25 years
Kotak Mahindra Bank
is the most Consistent Wealth Creator between 1995 and 2020.
In the 23 three-year rolling periods between 1995 and 2020, Kotak Mahindra has
outperformed the corresponding benchmark in 21 of those periods.
It is closely followed by
Berger Paints
and
HDFC
with 20 periods of outperformance.
(Where consistency is the same, higher the Price CAGR, higher the rank.)
Six of the top 10 Consistent Wealth Creators are also among the top 10 Fastest Wealth
Creators –
Berger Paints, Pidilite, Shree Cement, Honeywell Automation, Motherson Sumi
and
Sun Pharma.
December 2020
5
 Motilal Oswal Financial Services
25th Annual Wealth Creation Study, 2020
Top 25 Consistent Wealth Creators (1995 to 2020)
Consistency
25-year
25-year
Market Cap (INR bn)
P/E (x)
RoE
Rank Company
Count *
Price CAGR PAT CAGR
2020
1995
2020
1995
2020
1995
1 Kotak Mahindra Bank
21
21%
22%
2,480
9
29
14
13%
26%
2 Berger Paints
20
24%
20%
483
1
75
12
24%
20%
3 HDFC
20
19%
22%
2,824
20
13
14
17%
17%
4 Pidilite Inds
19
25%
20%
689
3
60
20
26%
13%
5 Shree Cement
19
25%
19%
634
2
41
9
12%
24%
6 Honeywell Auto
19
24%
22%
229
1
47
24
23%
19%
7 Motherson Sumi
19
23%
27%
193
1
17
26
10%
21%
8 Asian Paints
19
22%
18%
1,599
11
59
27
27%
26%
9 Dabur India
19
20%
19%
796
8
52
42
23%
14%
10 Sun Pharma
18
23%
23%
845
3
21
16
9%
23%
11 CRISIL
18
20%
18%
91
1
27
14
29%
24%
12 3M India
18
20%
22%
213
2
66
106
18%
8%
13 Aarti Industries
18
20%
18%
133
1
25
12
18%
23%
14 Chola Financial
18
14%
13%
54
4
10
14
12%
10%
15 Bajaj Finance
17
23%
26%
1,333
2
25
14
16%
19%
16 Coromandel Intl
17
20%
19%
159
1
15
9
25%
10%
17 Astrazeneca Pharma
17
19%
10%
60
1
83
14
20%
36%
18 Eicher Motors
16
25%
23%
357
1
20
10
18%
42%
19 Balkrishna Inds
16
22%
21%
153
1
19
15
16%
16%
20 Titan Company
16
22%
18%
829
6
55
24
23%
18%
21 Hero Motocorp
16
19%
22%
318
4
11
23
21%
26%
22 Kansai Nerolac
16
19%
16%
208
2
40
18
14%
25%
23 Torrent Pharma
16
18%
16%
334
5
33
23
21%
21%
24 Abbott India
16
18%
13%
328
4
55
16
24%
75%
25 P&G Hygiene
16
17%
15%
339
7
78
50
38%
12%
* Consistency count is the number of outperformances over the 23 three-year rolling periods between 1995 and 2020
Where consistency is the same, higher the Price CAGR, higher the rank
Kotak Mahindra Bank is also the best All-round Wealth Creator
Besides being the Most Consistent Wealth Creator,
Kotak Mahindra Bank
has also emerged
the best All-round Wealth Creator.
The All-round Wealth Creators rank is arrived at by combining the ranks of Fastest, Biggest
and Consistent Wealth Creators.
Kotak Mahindra ranks 14
th
among the Fastest Wealth Creators, 5
th
among the Biggest and 1
st
among the Consistent Wealth Creators. This gives it a combined rank of 20, which is the best
of the 100.
It is closely followed by
Pidilite Industries
and
Asian Paints
with All-round Wealth Creators
rank of 21 and 22, respectively.
Here too, where the Total Rank is the same, higher the Price CAGR, higher the rank.
December 2020
6
 Motilal Oswal Financial Services
25th Annual Wealth Creation Study, 2020
Top 25 All-round Wealth Creators (1995 to 2020)
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Company
Kotak Mahindra
Pidilite Inds
Asian Paints
Shree Cement
Berger Paints
Sun Pharma
HDFC
Bajaj Finance
Dabur India
Eicher Motors
Honeywell Auto
Titan Company
Britannia Inds
Motherson Sumi
Infosys
3M India
Nestle India
Reliance Industries
Hind. Unilever
Hero Motocorp
Coromandel Intl
Torrent Pharma
Balkrishna Inds
Abbott India
P&G Hygiene
Fastest
Rank
14
2
11
4
5
7
22
8
20
3
6
13
10
9
1
18
28
33
34
24
16
29
12
30
32
Biggest
Rank
5
15
7
19
21
12
4
9
14
23
33
13
17
43
3
35
8
1
2
27
45
25
48
26
24
Consistent
Rank
1
4
8
5
2
10
3
15
9
18
6
20
29
7
61
12
30
32
33
21
16
23
19
24
25
Total
of Ranks
20
21
26
28
28
29
29
32
43
44
45
46
56
59
65
65
66
66
69
72
77
77
79
80
81
1995-2020
Price CAGR
21%
25%
22%
25%
24%
23%
19%
23%
20%
25%
24%
22%
22%
23%
30%
20%
18%
16%
16%
19%
20%
18%
22%
18%
17%
1995-2020
PAT CAGR
22%
20%
18%
19%
20%
23%
22%
26%
19%
23%
22%
18%
20%
27%
33%
22%
17%
16%
16%
22%
19%
16%
21%
13%
15%
Consumer/Retail is the Biggest Wealth Creating sector over 25 years
At INR 12 trillion, Consumer/Retail is the biggest Wealth Creating sector during 1995 to 2020.
63 of the 100 Wealth Creators are from consumer-facing businesses, accounting for 68% of
total Wealth Created.
Sector mix of Top 100 Wealth Creators (1995-2000)
Sector/
{No. of companies)
Consumer & Retail (14)
Oil & Gas (2)
NBFC (8)
Pharma & Healthcare (15)
IT (3)
Banks - Private Sector (1)
Paints (3)
Autos (14)
Cap Goods, Engg, Constn (8)
Banks - Public Sector (1)
Consumer Durables (6)
Building Materials (4)
Metals - Non-Ferrous (1)
Chemicals (4)
Textiles (2)
Others (14)
TOTAL (100)
December 2020
Net Wealth Created
INR bn
Mix
12,224
28%
6,928
16%
4,002
9%
3,515
8%
2,839
7%
2,293
5%
2,272
5%
2,235
5%
1,697
4%
901
2%
882
2%
869
2%
642
1%
343
1%
179
0%
1,292
3%
43,115
100%
Mkt Cap (INR bn)
2020
1995
12,571
220
7,738
164
4,607
36
3,758
79
2,870
5
2,480
9
2,290
15
2,389
74
1,881
98
1,758
83
911
24
915
20
656
9
372
13
183
4
1,349
34
46,729
887
1995-2020 CAGR
Mkt Cap
PAT
18%
17%
17%
15%
21%
21%
17%
16%
29%
33%
25%
22%
22%
18%
15%
16%
13%
15%
13%
13%
16%
17%
16%
13%
19%
19%
14%
14%
17%
15%
16%
16%
17%
17%
RoE
2020
29%
10%
16%
8%
24%
13%
23%
10%
14%
6%
17%
12%
17%
14%
20%
11%
12%
1995
22%
15%
16%
21%
14%
26%
25%
15%
14%
15%
12%
24%
10%
14%
11%
14%
16%
2020
40
16
15
32
16
29
59
20
16
11
25
35
10
21
16
23
22
P/E
1995
36
13
13
30
34
14
23
27
25
12
31
18
11
17
12
26
20
7
 Motilal Oswal Financial Services
25th Annual Wealth Creation Study, 2020
Top companies in 1995 which did not make it to the Wealth Creators list
Almost 60 of the top 100 market cap companies in 1995 did not make it to the Wealth
Creators list, as their return CAGR was lower than that of the Sensex (9.2%).
Below are the top 25 among them.
Top 25 companies in 1995 whose 25-year return CAGR was lower than that of the Sensex (9.2%)
Market Cap
Rank in 1995-2020 CAGR
Company
1995
Price
PAT
SAIL
1
-2%
3%
MTNL
3
-13%
0%
Tata Steel
6
3%
P to L
HPCL
8
6%
9%
Tata Motors
10
1%
P to L
Tata Comm
11
0%
P to L
Colgate-Palmolive
13
8%
11%
Hindalco Inds.
16
3%
11%
Grasim Inds
17
7%
12%
Tata Chemicals
18
3%
6%
Castrol India
19
4%
10%
ACC
20
6%
10%
BHEL
21
4%
P to L
Note:
P to L stands for Profit to Loss
Market Cap
Rank in
1995
23
24
26
28
32
33
36
37
38
39
41
42
1995-2020 CAGR
Price
PAT
-16%
P to L
4%
4%
2%
5%
-3%
0%
7%
7%
-10%
8%
9%
10%
9%
14%
-13%
-5%
-12%
P to L
6%
-2%
-5%
-5%
Company
JCT
Century Textiles
Indian Hotels
MRPL
Ashok Leyland
Reliance Infra
Tata Consumer
Ambuja Cements
Standard Battery
Reliance Capital
GE Shipping
Tata Power
Interesting data points over 25 years
Market Cap & PAT Mix between companies in 1995 and new listings post 1995
Around 50% of both current market cap and profits is by new listings post 1995. Clearly, the future
holds a lot of promise.
INR billion
Market Cap
Base companies
New companies
Mix
Base companies
New companies
Profit After Tax
Base companies
New companies
Mix
Base companies
New companies
1995
3,080
3,080
0
100%
-
166
166
0
100%
-
2000
7,527
5,003
2,525
66%
34%
273
160
114
58%
42%
2005
15,497
7,980
7,517
51%
49%
1,166
604
562
52%
48%
2010
58,398
26,695
31,704
46%
54%
3,023
1,352
1,671
45%
55%
2015
98,743
47,930
50,813
49%
51%
3,652
1,704
1,948
47%
53%
2020
1,12,507
53,726
58,781
48%
52%
4,226
2,248
1,978
53%
47%
December 2020
8
 Motilal Oswal Financial Services
25th Annual Wealth Creation Study, 2020
25 Most Profitable Companies (measured by Average RoE)
21 of 25 most profitable companies are consumer-facing. In the long run, amidst massive change,
consumer and consumer behavior are the most predictable elements.
1995-2020
Avg RoE
68%
62%
61%
56%
41%
36%
32%
32%
30%
1995-2020
Avg RoE
30%
29%
29%
28%
26%
24%
24%
24%
24%
1995-2020
Company
Avg RoE
Glaxo Pharma
23%
Foseco India
23%
Berger Paints
23%
Coromandel Intl
23%
Navneet Education
23%
Monsanto India
23%
Pidilite Inds
23%
Company
Hindustan Unilever
Nestle India
Colgate-Palmolive
Castrol India
Hero Motocorp
P&G Hygiene
Dabur India
VST Industries
Asian Paints
Company
Infosys
Abbott India
Britannia Inds
CRISIL
ITC
Titan Company
Sun Pharma
Motherson Sumi
Torrent Pharma
25 Companies with highest PAT CAGR
Time is the friend of good companies and enemy of bad companies. In 25 years, successful
companies grow to unimaginable levels. For instance, Infosys’s 1995 PAT was INR 0.13 billion,
which is now at INR 164 billion. This is a 33% CAGR or 1,256 times in 25 years.
1995-2020 PAT
CAGR
Multiple
33%
1,256
29%
565
27%
360
26%
321
26%
314
25%
242
23%
184
23%
173
22%
155
22%
147
22%
142
22%
135
21%
119
1995-2020 PAT
CAGR
Multiple
21%
119
21%
111
20%
105
20%
103
20%
94
20%
94
20%
92
20%
89
20%
87
19%
83
19%
80
19%
80
Company
Infosys
Vedanta
Motherson Sumi
Bata India
Bajaj Finance
Mphasis
Sun Pharma
Eicher Motors
Hero Motocorp
HDFC
Honeywell Auto
Kotak Mahindra Bank
Bharat Electronics
Company
Jubilant Life
Balkrishna Inds
Hind. Oil Exploration
Amara Raja Batt.
Mah. Seamless
Berger Paints
Pidilite Inds
Bombay Burmah
Britannia Inds.
Hindustan Zinc
Kalpataru Power
Supreme Petrochem
25 Companies with biggest increase in PAT
(INR bn)
Company
Reliance Industries
HDFC
Infosys
State Bank of India
ITC
Larsen & Toubro
Kotak Mahindra
Vedanta
Hindustan Unilever
Hindustan Zinc
Bajaj Finance
Grasim Inds
Sun Pharma
December 2020
1995-2020
Incr. in PAT
418
213
164
156
152
93
85
70
67
66
52
51
39
% of
FY20 PAT
97.6%
99.3%
99.9%
95.6%
98.6%
97.1%
99.3%
99.8%
97.3%
98.8%
99.7%
94.5%
99.5%
(INR bn)
Company
BPCL
Hindalco Inds
HPCL
Hero Motocorp
Bajaj Holdings
Asian Paints
LIC Housing
Ambuja Cements
Dr Reddy's Labs
Nestle India
Eicher Motors
Bharat Electronics
1995-2020
Incr. in PAT
39
36
30
30
27
27
24
20
20
19
18
18
% of
FY20 PAT
93.1%
92.6%
88.5%
99.4%
90.0%
98.4%
98.3%
96.4%
98.1%
97.9%
99.4%
99.2%
9
 Motilal Oswal Financial Services
25th Annual Wealth Creation Study, 2020
25 Companies with highest Sales CAGR
What was true about change in PAT is equally true for change in Sales. Infosys tops the list again
with Sales CAGR of 34% i.e. 1,638 times in 25 years.
1995-2020 Sales
CAGR
Multiple
34%
1,638
32%
1,074
30%
701
29%
638
27%
409
27%
406
27%
389
27%
366
26%
296
25%
247
25%
243
24%
227
24%
200
1995-2020 Sales
CAGR
Multiple
23%
177
23%
170
22%
159
22%
154
22%
139
22%
138
21%
129
21%
124
21%
112
20%
99
20%
97
20%
97
Company
Infosys
Motherson Sumi
Mphasis
Bajaj Finance
Vedanta
Sun Pharma
Lupin
Dewan Housing
HDFC
Max Financial
Amara Raja Batt.
Kalpataru Power
Thomas Cook (I)
Company
Zee Entertainment
Reliance Capital
Sundaram Clayton
Reliance Industries
Bombay Burmah
CRISIL
Kotak Mahindra Bank
Hindalco Inds
Cholaman.Inv.&Fn
Rain Industries
Dr Reddy's Labs
Piramal Enterprises
25 Companies with biggest increase in Sales
(INR bn)
Company
Reliance Industries
BPCL
HPCL
Tata Motors
Larsen & Toubro
Tata Steel
Hindalco Inds.
State Bank of India
M&M
Infosys
Vedanta
Grasim Inds
HDFC
1995-2020
Incr. in Sales
5,929
2,775
2,597
2,561
1,424
1,356
1,172
1,048
935
907
842
756
694
% of
FY20 Sales
99.4%
97.5%
96.5%
98.1%
97.9%
97.0%
99.2%
96.4%
98.2%
99.9%
99.8%
97.3%
99.7%
(INR bn)
Company
Motherson Sumi
MRPL
SAIL
ITC
Adani Enterp.
Hindustan Unilever
CPCL
Sun Pharma
Hero Motocorp
Tata Power
Ambuja Cements
Ashok Leyland
1995-2020
Incr. in Sales
635
502
491
470
428
370
349
328
288
281
267
211
% of
FY20 Sales
99.9%
100.0%
79.6%
95.2%
98.5%
92.9%
93.6%
99.8%
98.4%
96.5%
98.6%
93.9%
25 Fastest Book Value Growth Companies
Company
Infosys
Motherson Sumi
Sun Pharma
Eicher Motors
Larsen & Toubro
Lupin
Hero Motocorp
Amara Raja Batt.
Mphasis
1995-2020
BV CAGR
31%
28%
26%
25%
24%
24%
23%
23%
23%
Company
Cipla
Adani Enterprises
Rain Industries
Kotak Mahindra
Bajaj Finance
Sundaram Clayton
Balkrishna Inds
Shree Cement
Honeywell Auto
1995-2020
BV CAGR
23%
23%
21%
21%
21%
21%
20%
20%
20%
Company
Mah. Scooters
MRF
HDFC
Timken India
Asahi India Glass
ITC
Mah. Seamless
1995-2020
BV CAGR
20%
20%
19%
19%
19%
19%
19%
December 2020
10
 Motilal Oswal Financial Services
25th Annual Wealth Creation Study, 2020
25 Highest Cumulative PAT Companies (INR bn)
1995-2020
Company
Sum of PAT
Reliance Industries
3,784
State Bank of India
1,727
Infosys
1,520
ITC
1,206
HDFC
1,204
Hindustan Zinc
882
Tata Motors
859
Larsen & Toubro
752
BPCL
679
1995-2020
Company
Sum of PAT
Hindustan Unilever
611
HPCL
518
SAIL
487
Sun Pharma
469
Kotak Mahindra
460
Hindalco Inds.
456
BHEL
449
M&M
448
Grasim Inds
413
Company
Vedanta
Tata Steel
Sterlite Inds.
Hero Motocorp
Bajaj Holdings
Reliance Infra
Ambuja Cements
1995-2020
Sum of PAT
397
395
385
354
327
222
209
25 Highest Cumulative Dividend Companies (INR bn)
1995-2020
Company
Sum of Divd
ITC
708
Infosys
633
Hindustan Zinc
503
Hindustan Unilever
498
Reliance Industries
457
HDFC
312
Vedanta
271
BPCL
262
State Bank of India
260
1995-2020
Company
Sum of Divd
Hero Motocorp
206
Larsen & Toubro
206
HPCL
179
Tata Steel
176
SAIL
124
BHEL
118
M&M
99
Nestle India
83
Asian Paints
83
Company
Tata Motors
Ambuja Cements
Sun Pharma
ACC
Castrol India
Bajaj Holdings
Tata Comm
1995-2020
Sum of Divd
82
76
68
66
65
64
64
25 Biggest Capex Companies measured by increase in Gross Block (INR bn)
1995-2020
Company
Incr. in GB
Reliance Industries
7,385
Tata Motors
2,686
Tata Steel
1,934
Vedanta
1,398
Hindalco Inds
1,383
Grasim Inds
990
SAIL
984
BPCL
716
M&M
680
Company
State Bank of India
Tata Power Co.
HPCL
Tata Steel BSL
Larsen & Toubro
Infosys
Sun Pharma
Tata Comm
Motherson Sumi
1995-2020
Incr. in GB
664
660
604
564
510
389
351
346
307
Company
Reliance Infra
Hindustan Zinc
ITC
CESC
MRPL
Ambuja Cements
Apollo Tyres
1995-2020
Incr. in GB
288
285
272
262
254
250
240
25 Companies with Highest Increase in Debt (INR bn)
1995-2020
Company
Incr. in Debt
Reliance Industries
3,522
Larsen & Toubro
1,411
Tata Motors
1,236
Tata Steel
1,128
Grasim Inds
829
M&M
822
Hindalco Inds
680
BPCL
651
Vedanta
591
1995-2020
Company
Incr. in Debt
Tata Power
475
HPCL
434
Piramal Enterprises
421
SAIL
419
Ashok Leyland
218
Tata Steel BSL
166
Reliance Infra
162
MRPL
159
Aban Offshore
156
1995-2020
Company
Incr. in Debt
Motherson Sumi
131
CESC
127
Adani Enterprises
124
Tata Comm
122
Sundaram Clayton
120
Chambal Fertilisers
88
Sun Pharma
83
December 2020
11
 Motilal Oswal Financial Services
25th Annual Wealth Creation Study, 2020
1995-2020 Rank Analysis
In our 2015 Wealth Creation Study, we called large, mid and small cap stocks as
Mega, Mid
and
Mini,
defined as under:
Mega –
Top 100 stocks by market cap rank for any given year
Mid
Next 150 stocks by market cap rank
Mini –
All stocks below the top 250 ranks.
Market cap ranks of companies change constantly. Over time, companies also cross over from
one category to another. For the period 1995-20, the market cap ranks crossover matrix stands
as given below.
1995-2020: Market cap rank crossovers: Number of companies and average returns
FROM (in 1995)
Mini
Mid
Mega
TO (in 2020)
Mega
Avg Return
4
24%
10
21%
32
13%
Mid
Avg Return
16
18%
22
12%
20
7%
Mini
Avg Return
911
0%
99
-1%
45
-3%
How to read the table
FIRST COLUMN:
— Over1995-20, 4 Minis moved to the Mega category, delivering 34% return CAGR
— 16 Minis moved to Mid by 2020, (21% return CAGR).
— 911 Mini companies stayed as Mini (0% return CAGR).
SECOND COLUMN:
— 10 Mids moved to Mega by 2020 (21% return CAGR)
— 22 Mids stayed as Mid (12% return CAGR).
— 99 Mids slipped to Mini (-1% return CAGR).
THIRD COLUMN:
— Of the 100 Mega companies in 1995, only 32 stayed as Mega in 2020 (13% return CAGR).
— 20 slipped to Mid (7% return CAGR)
— A high 45 slipped to Mini (-3% return CAGR).
Note:
During the 1995-2020 period, Sensex return was 9.2%.
December 2020
12
 Motilal Oswal Financial Services
25th Annual Wealth Creation Study, 2020
We present the major positive crossovers below.
Mini to Mega (4 companies; 24% return CAGR)
Rank
Mar-20 Mar-95
52
388
47
450
95
439
70
1001
1995-2020 CAGR
Price
PAT
25%
23%
24%
20%
24%
22%
23%
28%
24%
Mkt Cap (INR bn)
Mar-20 Mar-95
357
1
483
1
229
1
300
0.2
P/E
Mar-20 Mar-95
20
10
75
12
47
24
41
12
Company
Eicher Motors
Berger Paints
Honeywell Auto
Havells India
AVERAGE
Mini to Mid (16 companies; 18% return CAGR)
Rank
Company
Mar-20 Mar-95
Vinati Organics
216
1065
Motherson Sumi
111
432
Balkrishna Inds
136
376
Coromandel Intl
128
324
CRISIL
195
452
Aarti Industries
148
377
Amara Raja Batt.
211
528
Astrazeneca
244
437
TTK Prestige
228
400
Apollo Hospitals
130
681
Mphasis
153
458
Exide Inds
167
286
Johnson Controls
245
735
Schaeffler India
165
300
Shriram Transport
140
987
Cholaman.Inv.&Fn
152
481
AVERAGE
1995-2020 CAGR
Price
PAT
28%
24%
23%
27%
22%
21%
20%
19%
20%
18%
20%
18%
19%
20%
19%
10%
18%
13%
18%
17%
16%
25%
16%
19%
16%
14%
15%
16%
13%
25%
10%
18%
18%
Mkt Cap (INR bn)
Mar-20 Mar-95
79
0.2
193
1
153
1
159
1
91
1
133
1
82
1
60
1
68
1
158
0.4
124
1
112
2
58
0.3
116
1
150
0.2
125
1
P/E
Mar-20 Mar-95
24
10
17
26
19
15
15
9
27
14
25
12
13
10
83
14
35
11
49
6
10
16
14
14
69
9
31
18
6
2
12
4
Mid to Mega (10 companies; 21% return CAGR)
Rank
Mar-20 Mar-95
6
156
32
202
37
250
25
153
15
212
81
241
100
222
66
119
63
123
96
107
1995-2020 CAGR
Price
PAT
30%
33%
25%
20%
25%
19%
23%
23%
23%
26%
20%
P to L
20%
22%
19%
22%
18%
13%
12%
14%
21%
Mkt Cap (INR bn)
Mar-20 Mar-95
2,727
3
689
3
634
2
845
3
1,333
2
267
2
213
2
318
4
328
4
229
5
P/E
Mar-20 Mar-95
17
26
60
20
41
9
21
16
25
14
-
34
66
106
11
23
55
16
47
28
Company
Infosys
Pidilite Inds
Shree Cement
Sun Pharma
Bajaj Finance
Lupin
3M India
Hero Motocorp
Abbott India
Whirlpool India
AVERAGE
December 2020
13
 Motilal Oswal Financial Services
25th Annual Wealth Creation Study, 2020
Stock Markets over 25 years – Key indicators
Sector profitability low for the last 8 years
Most businesses are cyclical in character. As is said, a rising tide lifts all boats. Most sectors
do well when the economy is on the upswing. Thus, at the peak of the economic boom in
2007, 29 of 37 sectors recorded RoE>13%. However, for the last 7 years, that number is down
to between 7 and 11.
Only 3 sectors –
Consumer/Retail, IT
and
Paints
– maintained RoE>13% for each of the last
25 years.
Sector profitability low for the last 8 years
Sector Mix by RoE
11 11
18 19
26
27
23
22
29 28
Sectors with RoE > 13%
8
16
14
Sectors with RoE <= 13%
11
20
17
15
20
24 26 26
30
27 27
26
27
26 26
29
19
18
11
10
21 23
14
8
15
9
26
17
20
22
17
13
11 11
7
10 10
11
10
Corporate Profit to GDP at all-time lows
We seem to have hit the bottom in corporate profits. Corporate Profit to GDP has stagnated for
the last 5 years. This is similar to 1999 to 2003, after which corporate profits took off for the next
5 years.
Corporate Profit to GDP at all-time lows
Corp Profit to GDP (%)
3.9
3.3
4.2
5.2
5.7
4.6
5.0
4.9
4.4
3.7
3.5
3.1
Long-period avg:
3.2%
2.6
2.9
2.8
2.5 2.6
2.2 2.1
2.5
1.9 1.7
1.6 1.7
2.3
2.3
December 2020
14
 Motilal Oswal Financial Services
25th Annual Wealth Creation Study, 2020
Sensex EPS is near flat FY14 through FY20
FY95-98:
17% CAGR
Sensex CAGR:
6%
FY98-03:
–1% CAGR
Sensex CAGR:
-5%
FY03-08:
25% CAGR
Sensex CAGR:
39%
FY95-20:
9% CAGR
FY08-14:
8% CAGR
Sensex CAGR:
6%
FY14-20:
2% CAGR
Sensex
CAGR: 5%
Interest rates are softening
Permanent change in long-term interest rate band (from 12-14% to 6-8%) is leading to change in
valuation expectations. Current valuations are supported by expected PAT revival after 5 years
of stagnation and high liquidity led by low interest rates.
Interest rates are softening
16
14
12
10-year G-Sec yield (%)
10
8
6
4
2
0
Falling interest rate is driving up valuations to well above long-period average
30
25
20
15
27
Sensex P/E
Long-period avg:
18x
10
5
0
December 2020
15
 Motilal Oswal Financial Services
25th Annual Wealth Creation Study, 2020
Market Cap to GDP close to all-time high
Valuations are frothy with market cap around 100% of GDP.
Market Cap to GDP well above long-period average
Market Cap to GDP (%)
Long-period average:
60%
42
43
33
45
82 83
103
95
100
88
81
71
79 83 79
69
64
66
36
42
26
26
23
30
52
55
56
Market outlook
In the near term, expect the market to track nominal GDP growth of 10-12%.
25-for-25
A logical approach to shortlist 25 stocks for the next 25 years
Having studied how wealth got created in the last 25 years, we thought it an interesting idea to
attempt shortlisting 25 stocks likely to deliver handsome returns over the next 25 years.
We describe the approach below and stick our neck out with the names.
The 25-for-25 approach
Step 1: Observe the top 25 Wealth Creators of the last 25 years
Our observations here are follows. Almost all companies …
Were small to mid in size in the base year 1995
Were consumer-facing, bestowing them a secular business model
Were very profitable (average base RoE was a robust 17%)
Grew to emerge as market leaders (among top 3) in their respective business
Had management with high integrity and competence.
Step 2: Build a portfolio of the potential 25 Wealth Creators for the next 25 years
Based on the learnings above, we used a logical approach to build a portfolio of 25 stocks which
are potential Wealth Creators over the next 25 years.
1.
SIZE:
We started with a list of 150 midcaps i.e. companies ranked 101 to 250 by current
market cap.
2.
BUSINESS MODEL:
We preferred consumer-facing companies with secular business models.
So we eliminated cyclical businesses like Auto ancillaries, Capital Goods, Chemicals, Oil & Gas
and Realty. This reduced the list of companies from 150 to 114.
December 2020
16
 Motilal Oswal Financial Services
25th Annual Wealth Creation Study, 2020
3.
VERY PROFITABLE:
To ensure this, we chose companies with last 5-year average RoE greater
than 15%. This reduced the list from 114 to 63.
4.
BUSINESS POTENTIAL & MANAGEMENT POTENTIAL:
Next, to the best of our ability, we
judged the business potential and management potential of the companies, and selected
only those which qualified on both counts. This reduced the list from 63 to 28.
5.
MARKET LEADERSHIP:
We selected market leaders from the 28 companies to arrive at a list
of 13 companies.
6.
VALUE MIGRATION:
We have observed that in situations of Value Migration (see page 63),
all companies benefit irrespective of market leadership. So, of the 28 in Point 4, we selected
5 beneficiaries of Value Migration, taking the total list of shortlisted stocks to 18.
7.
LARGE CAPS FOR FINANCIALS:
We believe Financial Services is quite a risky business, and
here size begets size. So, we mainly resorted to large caps for financials, and roped in 6 leader
names for the portfolio, taking the total to 24.
8.
DIGITAL PLAY:
Finally, we opted for a pure digital play, even if it didn’t meet some of the
above filters, taking the total to 25.
9.
VALUATION:
We believe in the very long run, valuations matter less. So we ignored the same
in the shortlisting process.
We present the “25-for-25” stocks below.
The 25 for 25 stocks
1
2
3
4
5
6
7
8
9
Ajanta Pharma
Alembic Pharma
Astral Poly Tech
AU Small Finance
Bajaj Finance
Bata India
Bayer Crop Science
Coromandel International
Dixon Technologies
10
11
12
13
14
15
16
17
18
Dr Lal Pathlabs
HDFC AMC
HDFC Bank
HDFC Life Insurance
Honeywell Auto
ICICI Lombard
ICICI Securities
Indiamart Intermesh
Max Financial
19
20
21
22
23
24
25
Mphasis
Muthoot Finance
P&G Health
Page Industries
Syngene International
Varun Beverages
Whirlpool India
IMPORTANT DISCLAIMER:
The stocks mentioned above are used to explain the concept only, and should not be used
for development or implementation of any investment strategy. The same should not be construed as investment
advice to any party. Motilal Oswal Group and its associates may have financial interest in some or all of the companies
named here.
1995-2020: Closing observations
Time is a friend of good companies and enemy of bad companies. In 25 years, successful
companies grow to unimaginable levels in sales, profits and market cap.
Sustained Wealth Creation is a challenge. Of the top 500 companies listed in 1995, only 100
companies have outperformed the benchmark.
Stock returns are slaves of earnings power and growth. In the very long run, valuations matter
less.
The future always holds a lot more promise. Over 50% of current market cap is made up of
listings post 1995.
December 2020
17
 Motilal Oswal Financial Services
25th Annual Wealth Creation Study, 2020
APPENDIX 1: Fastest Wealth Creators – 1995 to 2020
Note: NWC: Net Wealth Created; P to L: Profit to Loss; L to P: Loss to Profit; NM: Not Meaningful
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
Rank
Company
Infosys
Pidilite Inds
Eicher Motors
Shree Cement
Berger Paints
Honeywell Auto
Sun Pharma
Bajaj Finance
Motherson Sumi
Britannia Inds
Asian Paints
Balkrishna Inds
Titan Company
Kotak Mahindra Bank
Lupin
Coromandel Intl
CRISIL
3M India
Aarti Industries
Dabur India
Amara Raja Batteries
HDFC
Hindustan Zinc
Hero Motocorp
Kansai Nerolac
Astrazeneca Pharma
TTK Prestige
Nestle India
Torrent Pharma
Abbott India
Voltas
P&G Hygiene
Reliance Industries
Hindustan Unilever
Mphasis
Can Fin Homes
Ipca Labs
Grindwell Norton
Asahi India Glass
Exide Inds
Atul
Dr Reddy's Labs
Adani Enterprises
Schaeffler India
Carborundum Univ.
Larsen & Toubro
Blue Star
MRF
Sundaram Clayton
Trent
Company
25-year Price
Multiple
CAGR
30%
688
25%
258
25%
255
25%
240
24%
239
24%
219
23%
180
23%
172
23%
161
22%
142
22%
139
22%
136
22%
135
21%
117
20%
103
20%
101
20%
97
20%
96
20%
95
20%
93
19%
84
19%
82
19%
74
19%
71
19%
71
19%
70
18%
69
18%
68
18%
61
18%
57
17%
49
17%
49
16%
42
16%
41
16%
41
16%
40
16%
40
16%
40
16%
39
16%
38
16%
37
15%
37
15%
35
15%
34
14%
28
14%
28
14%
28
14%
28
14%
27
14%
27
25-year Price
Multiple
CAGR
25-year
PAT CAGR
33%
20%
23%
19%
20%
22%
23%
26%
27%
20%
18%
21%
18%
22%
P to L
19%
18%
22%
18%
19%
20%
22%
19%
22%
16%
10%
13%
17%
16%
13%
14%
15%
16%
16%
25%
15%
15%
14%
15%
19%
16%
17%
16%
16%
13%
15%
11%
18%
15%
11%
25-year
PAT CAGR
NWC
(INR bn)
2,700
686
355
608
480
228
828
1,162
163
640
1,586
152
821
2,293
255
156
88
211
124
783
81
2,475
642
314
205
59
67
1,549
328
324
156
332
6,307
4,893
121
34
171
49
35
102
116
504
138
113
40
998
41
238
27
148
NWC
(INR bn)
Mkt Cap (INR bn)
2020
1995
2,727
3
689
3
357
1
634
2
483
1
229
1
845
3
1,333
2
193
1
647
5
1,599
11
153
1
829
6
2,480
9
267
2
159
1
91
1
213
2
133
1
796
8
82
1
2,824
20
656
9
318
4
208
2
60
1
68
1
1,572
23
334
5
328
4
158
3
339
7
7,052
120
4,975
82
124
1
37
1
175
4
51
1
38
1
112
2
118
2
518
9
151
3
116
1
42
2
1,133
59
44
2
247
9
30
2
170
2
Mkt Cap (INR bn)
2020
1995
P/E (x)
2020
1995
17
26
60
20
20
10
41
9
75
12
47
24
21
16
25
14
17
26
46
32
59
27
19
15
55
24
29
14
-
34
15
9
27
14
66
106
25
12
52
42
13
10
13
14
10
11
11
23
40
18
83
14
35
11
80
57
33
23
55
16
29
16
78
50
16
12
72
44
10
16
10
7
29
23
30
14
25
15
14
14
18
15
26
23
16
12
31
18
15
13
12
21
31
15
17
43
8
17
154
33
P/E (x)
2020
1995
RoE
2020
25%
26%
18%
12%
24%
23%
9%
16%
10%
32%
27%
16%
23%
13%
-4%
25%
29%
18%
18%
23%
18%
17%
17%
21%
14%
20%
15%
102%
21%
24%
13%
38%
9%
84%
20%
17%
16%
14%
12%
12%
21%
13%
6%
12%
14%
14%
19%
12%
15%
5%
RoE
2020
1995
21%
13%
42%
24%
20%
19%
23%
19%
21%
19%
26%
16%
18%
26%
15%
10%
24%
8%
23%
14%
49%
17%
10%
26%
25%
36%
13%
18%
21%
75%
12%
12%
14%
26%
55%
23%
18%
19%
36%
10%
10%
16%
35%
18%
15%
13%
18%
15%
14%
21%
1995
December 2020
18
 Motilal Oswal Financial Services
25th Annual Wealth Creation Study, 2020
APPENDIX 1: Fastest Wealth Creators – 1995 to 2020 (continued)
Rank
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
Company
ITC
Supreme Inds
Chola Financial
Cipla
Kajaria Ceramics
Bata India
Blue Dart Express
Gillette India
SRF
Siemens
Pfizer
Kalpataru Power
Godrej Industries
Sanofi India
J B Chem & Pharma
P&G Health
Bharat Forge
LIC Housing Finance
Zensar Tech
Whirlpool India
Bharat Electronics
Godfrey Phillips
Bosch
Sudarshan Chem
Akzo Nobel
Venky's (India)
Piramal Enterprises
M&M
Bombay Burmah
BPCL
Esab India
Nirlon
Elgi Equipments
Cholaman.Inv.&Fn
Navneet Education
State Bank of India
The Ramco Cement
Jubilant Life
ABB
Zee Entertainment
Bayer Crop Science
Timken India
EPL
Sundram Fasteners
Glaxo Pharma
Mah. Scooters
VIP Industries
VST Industries
Garware Technical
Max Financial
AGGREGATE
25-year Price
Multiple
CAGR
14%
27
14%
26
14%
25
14%
25
14%
25
14%
24
14%
24
14%
24
14%
24
13%
23
13%
23
13%
21
13%
21
13%
20
13%
19
12%
18
12%
18
12%
18
12%
17
12%
17
12%
16
12%
16
12%
16
11%
15
11%
15
11%
14
11%
14
11%
13
11%
13
11%
13
11%
13
11%
13
11%
12
10%
12
10%
12
10%
12
10%
12
10%
12
10%
12
10%
12
10%
12
10%
11
10%
11
10%
11
10%
11
10%
11
10%
11
10%
10
10%
10
10%
10
53
17%
25-year Price
Multiple
CAGR
25-year
PAT CAGR
18%
14%
13%
18%
13%
26%
-7%
16%
17%
15%
18%
19%
10%
14%
14%
13%
12%
18%
L to P
0%
21%
10%
15%
14%
9%
P to L
0%
P to L
20%
11%
13%
L to P
8%
18%
15%
13%
10%
21%
8%
15%
16%
L to P
12%
11%
7%
12%
13%
11%
9%
12%
17%
25-year
PAT CAGR
NWC
Mkt Cap (INR bn)
(INR bn)
2020
1995
1,945
2,114
69
107
110
3
30
54
4
312
341
12
56
60
2
154
158
4
50
52
2
175
178
3
157
160
3
380
396
15
166
184
4
19
28
1
79
95
8
137
144
7
37
39
2
57
60
3
99
109
4
97
119
5
18
19
1
223
229
5
168
181
12
46
49
3
255
278
22
24
26
2
94
100
6
11
12
1
109
212
7
313
354
17
47
51
4
621
686
44
15
17
1
19
22
1
16
18
1
95
125
1
13
14
1
901
1,758
83
111
121
10
32
40
2
179
198
19
114
119
4
149
155
5
48
57
4
45
49
3
56
61
5
196
211
13
21
23
2
32
34
1
39
43
4
21
23
1
96
104
3
43,115
46,729
887
NWC
(INR bn)
Mkt Cap (INR bn)
2020
1995
P/E (x)
2020
1995
14
31
24
20
10
14
23
47
23
16
48
362
NM
18
77
56
16
14
37
42
36
48
7
14
20
18
32
46
15
16
35
39
29
18
5
12
8
-29
47
0
10
78
15
10
25
69
20
35
42
22
-
12
866
26
-1
15
9
54
16
15
23
35
20
-
42
16
12
4
7
14
11
12
20
20
4
23
57
38
19
20
27
35
23
-
23
19
19
23
147
55
13
18
23
18
14
18
17
8
72
33
22
20
P/E (x)
2020
1995
RoE
2020
24%
21%
12%
9%
15%
17%
0%
25%
20%
12%
15%
12%
8%
19%
18%
19%
7%
13%
12%
19%
18%
15%
12%
22%
19%
-3%
0%
-1%
12%
11%
21%
24%
6%
13%
23%
6%
12%
17%
10%
7%
22%
16%
14%
16%
8%
2%
24%
39%
19%
7%
12%
1995
26%
15%
10%
26%
23%
1%
17%
11%
7%
13%
18%
18%
16%
12%
24%
21%
10%
16%
-9%
0%
5%
39%
17%
9%
13%
16%
13%
14%
7%
21%
11%
-29%
20%
15%
27%
15%
38%
9%
22%
34%
23%
-70%
23%
41%
0%
13%
13%
23%
28%
22%
16%
Rank Company
RoE
2020
1995
19
December 2020
 Motilal Oswal Financial Services
25th Annual Wealth Creation Study, 2020
APPENDIX 2: Biggest Wealth Creators – 1995 to 2020
Note: NWC: Net Wealth Created; P to L: Profit to Loss; L to P: Loss to Profit
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
Rank
Company
Reliance Industries
Hindustan Unilever
Infosys
HDFC
Kotak Mahindra Bank
ITC
Asian Paints
Nestle India
Bajaj Finance
Larsen & Toubro
State Bank of India
Sun Pharma
Titan Company
Dabur India
Pidilite Inds
Hindustan Zinc
Britannia Inds
BPCL
Shree Cement
Dr Reddy's Labs
Berger Paints
Siemens
Eicher Motors
P&G Hygiene
Torrent Pharma
Abbott India
Hero Motocorp
M&M
Cipla
Lupin
Bosch
MRF
Honeywell Auto
Whirlpool India
3M India
Kansai Nerolac
Glaxo Pharma
ABB
Gillette India
Ipca Labs
Bharat Electronics
Pfizer
Motherson Sumi
SRF
Coromandel Intl
Voltas
Bata India
Balkrishna Inds
Bayer Crop Science
Trent
Company
NWC
(INR bn)
6,307
4,893
2,700
2,475
2,293
1,945
1,586
1,549
1,162
998
901
828
821
783
686
642
640
621
608
504
480
380
355
332
328
324
314
313
312
255
255
238
228
223
211
205
196
179
175
171
168
166
163
157
156
156
154
152
149
148
NWC
(INR bn)
25-year
25-year
Price CAGR PAT CAGR
16%
16%
16%
16%
30%
33%
19%
22%
21%
22%
14%
18%
22%
18%
18%
17%
23%
26%
14%
15%
10%
13%
23%
23%
22%
18%
20%
19%
25%
20%
19%
19%
22%
20%
11%
11%
25%
19%
15%
17%
24%
20%
13%
15%
25%
23%
17%
15%
18%
16%
18%
13%
19%
22%
11%
P to L
14%
18%
20%
P to L
12%
15%
14%
18%
24%
22%
12%
0%
20%
22%
19%
16%
10%
7%
10%