Mukesh Ambani led Reliance Industries has emerged as the country’s largest wealth creator for the third time in a row, according to the 14th Motilal Oswal Wealth Creation Study.
It created Rs 1,514 billion (Rs 1.5 lakh crore) worth of wealth, 15.6 per cent of the total created, in 2008-09. Wealth creation has been calculated in the latest study as a change in the market cap of companies between 2003 and 2009, duly adjusted for corporate events such as mergers, demergers, fresh issuance of capital, buyback, etc.
Comparing the performance of the top 100 wealth creating companies (Wealthex) over the entire period, the Wealthex outperformed the Sensex by 83 per cent. Wealthex earnings showed a CAGR of 24.2 per cent, compared to 18.8 per cent for the Sensex. The Wealthex P/E ratio was 16.3, lower than 16.8 for the Sensex.
According to the study, the criteria for multi-bagger stocks is: these companies should have a P/E of less than 10 times, a price to book value of less than one, a price to sales ratio of one or less and a payback ratio of one or less. As many as 74 of the top 100 wealth creating companies had a base market cap of less than Rs 50 billion in 2004.
Source:http://www.business-standard.com/india/news/ril-again-largest-wealth-creator-unitechfastest-study/379895/
Labels: Reliance, Reliance Group, Reliance Industries, RIL