A new analysis by Motilal Oswal Financial Services Ltd (MOFSL) has crowned Hindustan Aeronautics Ltd (HAL) as the standout wealth creator for Indian investors over the past five years. The defence public sector undertaking (PSU) has not only delivered staggering returns but has also shown remarkable consistency, outperforming the market benchmark every single year.
HAL: The Unbeatable Performer
According to the 30th annual wealth creation study by MOFSL, HAL achieved a Total Return Compound Annual Growth Rate (CAGR) of 75% over the five-year period ending March 2025. This phenomenal performance meant it beat the Nifty Total Return Index in each of those five years. The report defines the 'most consistent wealth creator' based on the number of years a stock outperforms, with CAGR breaking any ties.
The consistency of HAL's performance is put into stark relief by a key finding: of the top 500 companies by market capitalisation in 2020, only 13 managed to outperform the market in all five subsequent years. HAL led this elite pack.
PSUs Emerge as Powerhouse Wealth Creators
The report marks a significant shift in market dynamics. For years, PSU stocks were often overlooked in wealth creation narratives, but the last five years have rewritten that story. The period from the pandemic lows of March 2020 saw the top 100 stocks generate wealth of Rs 148 lakh crore, with PSUs being major contributors.
In a telling statistic, four of the top ten 'all-round wealth creator' stocks identified in the study are PSUs. The 'all-round' tag is given to stocks that rank highly across three categories: biggest, fastest, and most consistent wealth creators. HAL excelled in all three to claim the top all-round spot.
Other Notable Consistent Performers
Beyond HAL, the list of consistent wealth creators featured other PSU heavyweights and private players. Welspun Corp, Bharat Dynamics, Indian Bank, and Bharat Electronics (BEL) were highlighted as notable performers. Notably, four of these five are public sector enterprises, underscoring the sector's dominant theme in this cycle.
This comprehensive analysis by Motilal Oswal underscores a transformative phase in the Indian equity landscape, where state-owned enterprises have transitioned from being perceived as sluggish to becoming engines of substantial shareholder wealth.
