In Motilal Oswal’s 30th Annual Wealth Creation Study (by Raamdeo Agrawal) for the 2020–25 period, the banking and finance industry continued to be the greatest overall contributor to wealth creation, while defense and capital goods businesses emerged as notable performers.
According to the study, which was made public in Mumbai on December 11, the total wealth generated by the top 100 firms during that time period hit an all-time high of Rs 148 trillion.
Defense is dominant in a number of performance areas
With a 75% total return CAGR, Hindustan Aeronautics Ltd. (HAL) emerged as the Best All-around Wealth Creator and the Most Consistent Wealth Creator, surpassing the Nifty Total Return Index in each of the previous five years. Bharat Dynamics Ltd. (BDL) and Bharat Electronics Ltd. (BEL), two other prominent defense PSUs, produced impressive total return CAGRs of 70% and 66%, respectively.
Adani Power, BSE, Persistent Systems, Rail Vikas Nigam, Indian Bank, Varun Beverages, Trent, and Jindal Steel were among the top performers among the All-around Wealth Creators outside of the defense industry, demonstrating robust wealth creation across industries like energy, financial services, technology, infrastructure, and consumer goods. Only 13 of the top 100 firms were able to outperform annually across the five-year period, indicating that persistent wealth generation is difficult, according to the research.
Capital goods firms saw significant growth as well. Larsen & Toubro added Rs 3.97 trillion in market capitalization between 2020 and 2025, placing them among the Top 10 Biggest Wealth Creators. The industry also made a significant appearance on the list of the Fastest Wealth Creators, with Dixon Technologies reporting a 79% CAGR and GE Vernova T&D providing an 85% CAGR.
According to the report, cyclical industries like engineering and capital goods were “major gainers in Wealth Creation vis-à-vis five years ago.” With a 47% Price CAGR and a rise in sectoral PAT growth from 15% in 2020 to 42% in 2025, the Capital Goods/Engineering industry generated Rs 13,974 billion in wealth between 2020 and 2025. Additionally, it falls within the larger category of capital expenditures, which the study refers to as “essential for India’s rising economy.”
A wider revival of public-sector businesses is also highlighted in the study, which notes that PSUs contributed 25% of all wealth produced in 2020–2025, partly due to profit turnarounds in seven state-run businesses. Notably, PSUs (including Bharat Electronics and HAL) made up four of the Top 10 All-around Wealth Creators, which was an odd change from earlier reporting periods.
Due to significant credit growth and increased profitability, especially among PSU banks, Banking & Finance generated Rs 36,534 billion over that time, more than any other industry, making it the top wealth-creating sector for the second consecutive study. Six PSU banks that produced profit turnarounds over the course of the five-year period, leading to a sector-wide PAT growth of 274x, are partially responsible for the dramatic increase in sector earnings, according to the research.
According to Motilal Oswal, India is about to embark on a “Multi-Trillion Dollar (MTD) Opportunity.” Strong long-term development potential is highlighted in the research for areas related to capital investment, consumer discretion, and finance. It is anticipated that many of the businesses that have done well during this time will continue to generate substantial wealth in the years to come. The MTD topic highlights how India’s corporate and economic expansion in the next decades may facilitate long-term wealth creation, rooted in structural elements including increased financialization, growing stock ownership, and improved corporate profitability.
