Tatas emerge as top wealth creator since Sensex scaled 60,000

Under the stewardship of 60-year-old Natarajan Chandrasekaran, who has the looks of an affable professor rather than a super-aggressive corporate honcho, the house of the Tatas leads the list of top wealth creators on the Indian bourses, The Times of India has reported. Since September 24, 2021, the group added almost Rs 6 lakh crore for the investors which puts them far ahead of the rest of the pack of Indian majors.

The significance of the date lies in the fact that on that day the Sensex reached 60,000 points. Since that day, the Tatas generated a return of 25%.

In the same time window, Tata Investment Corporation produced a return of 227%.

In terms of amount generated for shareholders, the Adani Group has shaken off the impact of the Hindenburg group in January 2023, to produce a return of Rs 4.3 lakh crore. The group has 10 companies listed in the Indian markets.

“Despite the Hindenburg saga, Adani Group emerged as a major wealth creator during this period. None of the Adani companies posted negative returns. Adani Power has been the largest wealth generator, with its share price appreciating more than five times,” Girish Bhise, founder, ValueAdd Research & Analytics Solutions told the newspaper. Adani’s companies produced a return of 42%.

The third name on the list of wealth generators is the Bharti Group.

The fourth spot is occupied by the Murugappa Group from Chennai.

The fifth position belongs to the Aditya Birla group.

“There has been considerable wealth creation within some business groups. We expect this bullish phase to continue to deliver consistent long-term gains as Indian equities remain a favourable destination of capital,” said Shiv Sehgal, president of Nuvama Capital Markets.

The long-time darling of investors the RIL group has, in this time frame, performed below the Sensex that produced a return of 16%.

The report states that besides Murugappa groups, four other business houses yielded returns in excess of 100%. Venu Srinivasan’s TVS Group recorded a scorching 226% while Ravi Jaipuria Group that has Varun Beverages and Devyani International recorded returns of 204%.

The badge of the fastest wealth creator in the time window under consideration goes to CG Power. It belongs to the Murugappa group. Incidentally, the company is helmed by N Srinivasan, who happens to be the brother of N Chandrasekaran, captain of the Tata group. Murugappa had taken up the reins of the company in 2020 and uncorked a spectacular turnaround act, making the cash-strapped entity debt-free and even generating dividends for shareholders.

The Murugappa group has nine listed companies and it added Rs 1.8 lakh crore of investor wealth in total which works out to a return of 119%. CG Power itself generated added Rs 54,000 crore of that amount.