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Motilal Oswal, in its 30th Annual Wealth Creation Study stated that the total wealth destroyed between 2020-2025 is ₹66,600 crore, which is 0.4% of the total wealth created by the top 100 companies.
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24 out of the top 500 companies destroyed wealth, according to the study, which also reflects the full impact of the Covid-hit low base of March 2020. The top 10 wealth destroying companies, accounted for 82% of the total wealth destroyed, and all of them belonged to consumer-facing businesses, the study noted. Here’s a look at those 10 companies:
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Rajesh Exports | On top of the list is Rajesh Exports, with wealth destruction of ₹10,500 crore, or a 16% share of the total wealth destroyed. The stock has had negative Compounded Annual Growth Rate (CAGR) returns of 19% over the last five years.
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Whirlpool Of India | The stock has destroyed wealth to the tune of ₹10,000 crore, or 15% of the total wealth destroyed over the last five years. The company remains in the spotlight due to the promoter stake sale overhang and has had negative CAGR returns of 11% during this period.
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Bandhan Bank | The only private lender as part of this list, Bandhan Bank has destroyed wealth to the tune of ₹8,400 crore over the last five years, or 13% of the total wealth destroyed. The stock has delivered negative CAGR returns of 6% during this period.
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Vodafone Idea | Once a Nifty 50 constituent, Vodafone Idea has also destroyed investor wealth worth ₹7,100 crore or 11% of the total, with a negative CAGR return of 17% during this period. The stock has just got back above its FPO price of ₹11 for the first time after more than a year.
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Dhani Services & Relaxo Footwear | Both these companies have destroyed wealth worth ₹4,400 crore each during this period or 7% of the total wealth destroyed. While Dhani Services has delivered negative CAGR returns of 12%, Relaxo has delivered negative returns of 7%.
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PVR Inox | The stock has destroyed wealth to the tune of ₹4,200 crore or 6% of the total during the last five years, delivering negative CAGR returns of 5%.
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Spandana Sphoorty | The NBFC has destroyed investor wealth to the tune of ₹2,400 crore over the last five years, or 4% of the total wealth destruction with a negative CAGR return of 17%.
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Zee Entertainment & Future Consumer | Rounding off the list is Zee Entertainment, which has made new lows recently, having destroyed investor wealth to the tune of ₹1,600 crore over the last five years and negative CAGR returns of 3%. Future Consumer has also destroyed wealth worth ₹1,500 crore but with negative CAGR returns of 41%.