Mumbai – A new study from Motilal Oswal Financial Services reveals that ten Indian stocks, including Vodafone Idea, Zee Entertainment, and Bandhan Bank, were among the biggest wealth destroyers over the last five years, from 2020 to 2025. These companies collectively wiped out a significant portion of investor wealth during a period that otherwise saw record-breaking market gains. The Motilal Oswal 30th Annual Wealth Creation Study, released this week, highlights a contrasting trend of concentrated wealth destruction amidst broader market prosperity. ### Concentrated Losses in Consumer Sectors The study found that the total wealth destroyed across the top 500 listed companies amounted to ₹66,600 crore between 2020 and 2025. This figure represents the lowest wealth destruction recorded in the study's 17-year history, making up only 0.4% of the total wealth created by the top 100 companies. Despite this low overall figure, the top ten wealth-destroying stocks accounted for a substantial 82% of the total wealth eroded. All ten companies on this list operate in consumer-facing businesses, signaling a particular struggle within this sector. Ra^[1][2]amdeo Agrawal, Chairman of Motilal Oswal Group, leads the annual study. He noted that the five-year period from 2020 to 2025 delivered the highest wealth creation in the study's three-decade history. This was largely driven by a sharp rebound from the lows experienced during the COVID-19 pandemic. ## Top Wealth Destroyers Detailed **Rajesh Exports** emerged as the top wealth destroyer, wiping off over ₹10,000 crore of investor wealth. The gold refiner, manufacturer, and exporter saw its stock decline by 60% over the last five years, with a compound annual growth rate (CAGR) of minus 19%. **Wh^[1][2]irlpool India**, an electronics goods manufacturer, followed closely. It also destroyed over ₹10,000 crore of investor wealth. The company's stock fell 56% during the study period, registering a CAGR of minus 11%. **Band^[1][2]han Bank** saw its shares erode ₹8,400 crore of investor wealth, with a CAGR of minus 6%. The private sector lender faced challenges from weak asset quality and muted loan growth, contributing to its poor performance. **Vodafo^[1][2]ne Idea**, the beleaguered telecom firm, eroded ₹7,100 crore of wealth. This occurred despite a more than 50% rally in its stock during the last six months of the study period. The overall five-year impact, however, remained sharply negative, reflecting significant long-term wealth destruction for investors. It recorded a positive CAGR of 17% during the period, yet still destroyed wealth due to its low base and overall negative trend from the start of the five-year period. **Dhani Se^[1][2]rvices** ranked as the fifth-largest wealth destroyer, eroding ₹4,400 crore of investor capital. The company experienced a CAGR of minus 12% over the five years. ### Other Ma^[1]jor Contributors to Wealth Erosion The remaining five companies on the top ten list, including **Relaxo Footwear, PVR Inox, Spandana Sphoorty, Zee Entertainment (ZEEL), and Future Consumer**, cumulatively shed ₹14,100 crore. These companies, primarily operating in consumer-facing businesses, faced various headwinds. **PVR Inox**, ^[1]a multiplex business, grappled with industry-specific challenges, contributing to its wealth destruction. **Relaxo Footwear** also saw significant value erosion. ### Sectoral V^[1][2]ulnerabilities Highlighted The study found that the consumer and retail sector bore the brunt of wealth destruction, accounting for ₹29,600 crore, or 44% of the total share. Financials and telecom sectors also followed with substantial wealth erosion. Other sectors such as IT, realty, media, and capital goods also performed poorly in terms of wealth creation for some companies. The concentratio^[1]n of wealth destruction in consumer-facing businesses suggests these companies struggled to regain their pre-COVID momentum. They faced increased cost pressures and lost market share to more agile competitors. This trend marks an unexpected reversal, as consumption has historically been a stable pillar of India's market growth. ### A Market of ^[2]Contrasts Despite these significant pockets of wealth destruction, the overall Indian equity market demonstrated robust performance. The Motilal Oswal study highlights that the period from 2020-2025 witnessed the highest wealth creation in the study's three-decade history, with the top 100 companies adding ₹148 trillion. This remarkable growth was fueled by a strong market recovery following the pandemic downturn, robust earnings cycles in manufacturing, banking, and energy sectors, and a growing base of retail investors supporting valuations. The study's theme,^[1][2][3][4] "India – The Multi-Trillion Dollar Opportunity - Compounding Economy, Compounding Stocks," explores how India's economic compounding is set to create exponential opportunities for investors, businesses, and capital allocators. This long-term positive outlook exists even as certain companies face severe headwinds. The findings undersc^[1][3][4]ore the dynamic nature of the Indian stock market, where periods of unprecedented wealth creation coexist with significant value erosion in specific sectors and companies. Investors must navigate these complexities by carefully selecting businesses that can sustain growth and adapt to evolving market conditions.

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