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

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

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

In 2019, there were 2,852 mini-companies (i.e. numbered above 250). Among them, only Adani Green was placed in the mega category by 2024.

Adani Green Energy is India’s leading renewable energy solutions partner, developing, owning and operating utility-scale grid-connected solar, wind and hybrid renewable power plants.

Other fastest wealth creators in this five-year period include Dixon Technologies, Linde India, Varun Beverages.

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Among these top 10 fastest wealth creators in 2019 is Rs. 10 lakh investment in 2024 Rs. 1.75 crore, which is a return of 77% CAGR. This compares to just a 14% return CAGR for the Nifty 50.

A strong performance by Adani Green along with Adani Power and Adani Energy Solutions boosted the overall return profile of utility stocks, which are generally considered a laggard. Utilities emerged as the third largest wealth creation sector overall.

According to the report, nine of the top 10 fastest wealth creators have seen large-scale P/E re-ratings. Additionally, 5 of the top 10 had P/Es greater than 100x.

“Although partially justified by strong earnings growth, this is still a case of more money chasing too few stocks. The current P/E of Nifty Midcap 100 is 44x while the P/E of Nifty Small Cap 100 is 36x. This clearly warrants caution,” it said.

Adani Group’s flagship company Adani Enterprises emerged as the top wealth creator in Motilal Oswal’s wealth creation study.

The report defines overall wealth creators based on the sum of ranks in each of three categories – largest, fastest and most relevant. Where scores are tied, share price CAGR determines the all-round rank. Based on this criteria, Adani Enterprises has emerged as the clear winner.