Summary of this article
Airtel, ICICI Bank and SBI led Rs 148 lakh crore wealth creation.
BSE, Adani Enterprises among fastest stocks turning Rs 1 crore into Rs 24 crore.
Mid-cap surge, high valuations raise caution for investors ahead.
Indian equities created wealth at an unprecedented pace between 2020 and 2025, helped by a sharp rebound from the Covid-19 market crash. According to Motilal Oswal’s Annual Wealth Creation Study (2020–2025), the top 100 wealth-creating companies added a record Rs 148 lakh crore in market value during the five-year period. It was the highest in the 30-year history of the study.
The pace of wealth creation stood at 38 per cent compounded annual growth rate (CAGR), the fastest across the last 17 study periods and well ahead of the BSE Sensex’s 21 per cent CAGR over the same time. A key reason for this sharp rise, as per the report, was the extremely low market base of March 2020, when equities collapsed following the nationwide Covid lockdown.
Bharti Airtel tops the list of the biggest wealth creators
Bharti Airtel emerged as the biggest wealth creator. Between 2000 and 2025, the telecom major added Rs 7.9 lakh crore in shareholder wealth. ICICI Bank followed closely, creating Rs 7.4 lakh crore of wealth over the same period. SBI, Bajaj Finance, L&T, ITC, HCL Technologies, Sun Pharma, M&M and NTPC also found their place in the list.
The period between 2020 and 25 saw a broad-based rally. According to the study, the top 10 wealth creators accounted for just 31 per cent of total wealth created, the lowest share ever. Historically, the top 10 companies used to account for around 50 per cent of wealth creation.
This dispersion reflects the strong rally in mid- and small-cap stocks after the Covid lows, says Motilal Oswal’s Annual Wealth Creation Study (2020–2025). Eight of the top 10 wealth creators also benefited from a significant price-to-earnings P/E re-rating, largely supported by a sharp improvement in return on equity (RoE) from March 2020 levels
Large caps may regain ground
The report notes that the heavy outperformance of mid- and small-caps explains why the top 10 share of wealth creation fell so sharply. However, with many mid- and small-cap stocks now trading at rich valuations compared to large caps, the study expects a bounce back in large caps’ share of wealth creation as earnings growth is expected to revive.
Most mid- and small-cap stocks are currently overvalued compared to large caps, notes the study. With earnings growth likely to revive, expect a bounce back in large caps’ share of Wealth Creation.
BSE leads the fastest wealth creators
While Bharti Airtel led in absolute wealth created, BSE emerged as the fastest wealth creator during 2020-25, delivering a staggering 124 per cent total return CAGR. Adani Enterprises featured among the top 10 fastest wealth creators for a record fifth consecutive study period.
Rail Vikas Nigam, Jindal Stainless, GE Vernova T&D and Persistent Systems also made it to the list of fastest creators.
According to Motilal Oswal Study, an investment of Rs 1 crore, equally split across the top 10 fastest wealth creators in 2020, would have grown to Rs 24 crore by 2025, translating into a return CAGR of 88 per cent, compared with 24 per cent for the Nifty Total Return Index.
Valuations matter at the peak
The study also carries a clear caution for investors. In many fast wealth-creator cases, stock returns were driven not just by earnings growth but also by sharp valuation expansion. In some instances, returns were largely the result of P/E re-rating without matching earnings growth, says the Report.
Just as low valuations can offer buying opportunities, frothy P/Es often signal profitable selling opportunities, the report notes.
