Question

Identify a wealth creator and wealth destroyer on both stock and wealth destructor stock during 2000 to 2018.

Answer 1

Market volatility over the past 12 months has been among the highest since 2008. After a fall of 14% in the first two months of 2016, the Nifty 50 shot up by 32% in early September only to fall 11% by the end of November.
Amid this volatility, a handful of companies-mostly in commodity-related and chemical businesses--were able to give strong returns to shareholders. For instance, the market cap of Manappuram FinanceNSE 0.32 %, which lends against gold, more than doubled over the past year. It benefited from a sharp jump in gold prices and the Reserve Bank of India's decision to increase the loan-to-value ratio from 60% to 75%. JK group-owned Orient PaperNSE 0.00 % was the other major value creator. The consumer appliances and paper manufacturer reported a 500% jump in net profit in the first half of FY17.

Gujarat Narmada ValleyNSE 1.20 % Fertilizer (GNFC) and Chemicals and Gujarat Alkalies and ChemicalsNSE 2.60 % (GNFC) were among the top five value creators. Both benefited from the rise in chemical prices due to a shutdown of global capacities. Another company that made it into the top five value creators list of the ET500 was Anil Agarwal-owned Vedanta, one of the biggest beneficiaries of the rise in commodity prices.
Among the biggest wealth destroyers were mostly infrastructure-related companies with one thing in common--high debt. Despite having strong order books, companies such as Pratibha IndustriesNSE -5.00 % and MBL Infrastructure failed to generate returns. The companies struggled with lower fund availability for working capital and delays in project execution as late payments from clients created a cash crunch.