Mukesh Ambani-led Reliance group delivered the least returns among the big corporate houses.
The two large corporate houses, along with six others, accounted for 30 per cent of the total wealth generated on BSE during the eight-month period.
Other groups — namely Tata, Aditya Birla, Mahindra, Om Prakash Jindal, Bajaj and Ajay Piramal — delivered returns that were better than that of Sensex, market capitalisation data of the business groups as a whole showed.
Domestic investors’ wealth, as measured by BSE market capitalisation, climbed 32.96 per cent in the first eight months to hit a high of Rs 250 lakh crore on August 31 compared with Rs 188 lakh crore as of December 31, 2020. Total wealth creation, thus, stood at Rs 62 lakh crore in value terms. Out of this, the eight corporate houses cornered Rs 18.47 lakh crore, or 30 per cent of gains.
In percentage terms, the total market-cap of the eight corporate houses rose 39 per cent. Excluding Reliance Group, the m-cap for the remaining seven corporate houses rose 49 per cent for 2021 so far.
Six of the Adani group stocks saw their combined m-cap rise 104 per cent to Rs 8,65,088 crore at August-end compared with Rs 4,24,086 crore at the end of December 2020. Adani Total Gas (up 285 per cent), Adani Transmission (up 261 per cent) and Adani Enterprises (up 231 per cent) delivered solid returns. Adani Power almost doubled investors’ wealth at 98 per cent.
Twenty-nine Tata group stocks, whose contribution to 2021 wealth creation was highest in value terms at Rs 6.12 lakh crore, delivered 38.77 per cent return in the eight-month period. Seven of these stocks delivered 100-360 per cent returns. They included Tata Teleservices (up 359 per cent), Nelco (161 per cent), Tata Elxsi (160 per cent), Tata Steel BSL (136 per cent), Tata Steel (125 per cent), Automotive Stampings (104 per cent) and Tata Coffee (103 per cent). TCS, the second most valuable stock on Dalal Street, saw 32 per cent jump in its market value.
An underwhelming 13.83 per cent return by Reliance Industries, the most valued stock on BSE, dragged Mukesh Ambani-led Reliance Group’s total return to 13.64 per cent in 2021 so far. The BSE Sensex has gained 20 per cent during this period.
Three of the group stocks — Den Networks, Hathway Bhawani Cabletel & Datacom and Hathway Cable & Datacom — delivered negative returns of 16-30 per cent during this period.
Nine of Bajaj Group stocks saw their combined m-cap rise 48.88 per cent this year to Rs 9.04 lakh crore from Rs 6071 lakh crore. Even as Bajaj Auto lagged, two of the group’s most valued stocks — Bajaj Finance and Bajaj Finserv — delivered 42 per cent and 92 per cent returns, respectively. Other group stocks such as Mukand, Mukand Engineers and Bajaj Electricals doubled investor wealth during this period.
In the case of Aditya Birla Group, three stocks — Hindalco Industries (up 94 per cent), Grasim (up 62 per cent) and UltraTech Cement (48 per cent) — swelled the group’s m-cap 48.21 per cent to Rs 4,94,184 crore from Rs 3,33,433 crore YTD. Vodafone Idea with a 43 per cent fall remained the only laggard.
Thirteen of the OP Jindal group stocks saw 87 per cent rise in m-cap at Rs 2,75,017 crore compared with Rs 1,47,245 crore. Stellar show by JSW Energy (up 264 per cent) and JSW Steel (up 77 per cent) contributed the most in value terms. Only one out of 13 group stocks (Shalimar Paints, up 5 per cent) has failed to beat Sensex returns for the year so far.
Meanwhile, nine Mahindra group stocks added 27.65 per cent to investor wealth. TechM, the most valued group stock, delivered 49 per cent return, even as M&M lagged with a 10 per cent return.
Four Piramal Group stocks added 93 per cent to investor wealth, with the flagship Piramal Enterprises gaining 83 per cent year to date.