A recent study by Motilal Oswal reveals that the period from 2020 to 2025 has seen the highest wealth creation in the last three decades. The study, led by Raamdeo Agrawal, explores India's evolving wealth creation landscape and how the country's economic compounding is set to create exponential opportunities for investors, businesses, and capital allocators.
However, the report also highlights a contrasting trend: several stocks, predominantly from consumer-facing sectors, have emerged as wealth destroyers during this period. The total wealth destroyed is approximately ₹66,600 crore, which is the lowest in the last 17 years, accounting for only 0.4% of the total wealth created by the top 100 companies.
The top 10 wealth-destroying stocks accounted for as high as 82% of the total wealth destroyed, and interestingly, all belonged to consumer-facing businesses. Some of the notable stocks include:
Rajesh Exports and Whirlpool India emerged as the top wealth destroyers, wiping off over ₹10,000 crore of investor wealth in five years. Other notable mentions include Dhani Services, Relaxo Footwear, and Spandana Sphoorty.
The consumer and retail sector topped the list, with ₹29,600 crore wealth destruction, forming 44% of the total share. Meanwhile, financials and telecom followed, with IT, realty, media, and capital goods also faring poorly.
It's essential for investors to be aware of these trends and make informed decisions. As the Indian economy continues to grow, it's crucial to understand the market trends and sector-wise performance to maximize returns and minimize losses.
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