TCS retains top wealth creator trophy

Mumbai, Dec. 9: The country's top 100 companies in market valuation generated wealth worth Rs 28.4 lakh crore in the last five years, with Tata Consultancy Services (TCS) retaining the top position for the fourth time in a row.

According to the "21st Annual Wealth Creation Study" by Motilal Oswal Financial Services, Tata Consultancy Services is the biggest wealth creator as it generated over Rs 2.6 lakh crore for the period 2011-16.

The study analysed the top 100 wealth-creating companies during 2011-16.

The wealth created is calculated as the change in market cap of companies between 2011 and 2016, adjusted for corporate events such as mergers, de-mergers, fresh issuance of capital and share buyback, among others. It identifies the fastest, biggest and the most consistent wealth creators.

According to the brokerage, the wealth created during the period 2011-16 was the third-largest ever.

Interestingly, while the compounded annual growth rate of the Sensex stood at only 5 per cent, the pace of wealth creation was much higher at 18 per cent, showing that wealth creation happens in all market conditions.

TCS was followed by private sector lender HDFC Bank, according to the study. On the other hand, Ajanta Pharma was found to be the fastest wealth creator for the second year in a row even as Asian Paints emerged as the most consistent generator.

Sector-wise, consumer/retail emerged as the country's biggest wealth-creating industry for the second consecutive time.

The report noted that the performance of the public sector undertakings (PSUs) remained dismal during 2011-16.

Only seven PSUs - Bharat Petroleum Corporation Ltd, Hindustan Petroleum Corporation Ltd, Petronet LNG, Concor, LIC Housing, Bharat Electronics and Power Grid Corporation - figure on the list of top 100 wealth creators and contributed to 4 per cent of total wealth generation.

Meanwhile, wealth worth Rs 15 trillion was destroyed during 2011-16. This accounts for 53 per cent of the total wealth created by top 10 companies.

"Seven of the top 10 wealth destroyers are in the business of global commodities,'' the brokerage said. Metals or mining is the biggest wealth-destroying sector as was the case last year, followed by banking and finance, which mainly includes state-owned banks, the brokerage added.

TATA Consultancy Services ( TCS )