HAL Stock Delivers Big: Defence PSU Tops Wealth Creation Charts

Hindustan Aeronautics (HAL) has distinguished itself as the most consistent and comprehensive wealth-generating stock over the past five years. A recent report by Motilal Oswal Financial Services Limited highlights this achievement, noting that HAL has surpassed the Nifty Total Return Index annually during this period.

The defence PSU boasts an impressive 75% Total Return Compound Annual Growth Rate (CAGR). The report also indicates that Public Sector Undertaking (PSU) stocks have been the primary drivers of wealth creation during this timeframe, marking a shift from previous trends.

**Consistent Performance**

The Motilal Oswal Financial Services Limited (MOFSL) study defines the 'most consistent wealth creator' as a stock that has outperformed the market in each of the last five years. When multiple stocks meet this criterion, the one with the highest Total Return CAGR is ranked higher.

According to the study, during the period spanning from 2020 to 2025, HAL emerged as the leader in consistent wealth creation. MOFSL emphasizes that maintaining consistent wealth creation is challenging. Of the top 500 companies by market capitalization in 2020, only 13 have managed to outperform the market every year for the past five years. HAL also holds the title of ‘Best All-round Wealth Creator,’ meaning it performs strongly across various wealth creation metrics.

**PSUs Take the Lead**

An interesting finding from the report is that PSUs are increasingly contributing to wealth creation. Four of the top ten 'all-round wealth creator' stocks are now PSUs. Other consistent wealth creators include Welspun Corp, Bharat Dynamics, Indian Bank, and Bharat Electronics; PSUs account for four of these five companies.