ONGC, Punjab National Bank shares among biggest wealth destroyers in last 5 years; check top 10

PSUs and financials have emerged as the biggest wealth destroyers in the last 5 years, with 6 out of the 10 duds being PSUs, according to a study. According to Motilal Oswal’s 23rd Wealth Creation study, The total wealth destroyed during 2013-18 is Rs 4.9 trillion, 11% of the total wealth created by top 100 companies. “Thanks to buoyant markets, especially mid- and small-caps, both the quantum and the percentage of Wealth Destroyed in the last two studies are much lower than in the previous two studies,” Motilal Oswal noted.

Shares of state-run oil major ONGC have emerged as the biggest wealth destroyers, with investors losing over Rs 384 billion in the last 5 years alone. The financials sector has the unusual distinction of being the biggest wealth creator (thanks to private banks and NBFCs) and the biggest Wealth Destroyer (thanks to state-owned banks), said the report. Which are the biggest wealth destroyers?

After ONGC shares of state-run Bank of India came second, destroying Rs 180 billion in the last 5 years alone. Coal India (Rs 156 bn destroyed), Idea Cellular (Rs 151 bn destroyed), Punjab National Bank (Rs 146 bn destroyed) were among the top 5 wealth destroyers. MMTC, IDFC, Wockhardt, BHEL and Jindal Steel were ranked in the top 10 list. According to the study, it is best for investors to aviod cyclical stocks.

“For the past several studies, Wealth Destruction has been dominated by cyclical sectors – Metals/Mining, Construction, Real Estate, Capital Goods, etc. Sure, stocks in these sectors may turn Wealth Creators someday. But still, timing one’s entry and exit in cyclicals is crucial. Considering the difficulty in achieving this, perhaps cyclicals are best avoided altogether,” Motilal Oswal noted in the report.

To know more about us or our services, kindly visit

Buildcaps Management Services

Best Investment adviser in India & Genuine Stock advisory company