Indian stock market has been a fertile ground for wealth creation, with certain stocks delivering exceptional returns to investors over the past five years. A recent study by Motilal Oswal Financial Services (MOSL) has identified the top 10 fastest wealth-creating stocks between 2020 and 2025, with some generating returns as high as 5,500%.
BSE Ltd. (Bombay Stock Exchange) has emerged as the leader, offering an astounding 124% compounded annual growth rate (CAGR) during the study period. This means an investor's money more than doubled every year, on average, for five years. As of December 11, 2025, BSE shares closed at ₹2,697.90, a 4.50% increase from the previous day. Year-to-date, the stock is up by 49.16%.
The Adani Group features prominently on the list, with Adani Enterprises Ltd. and Adani Power Ltd. securing spots among the top performers. Adani Enterprises has delivered a 76% CAGR over the last five years. On December 11, 2025, the shares closed at ₹2,276.65, up 3% from the previous close. However, the stock is down 8.34% YTD. Adani Power has provided investors with a 79% CAGR return in the same period. The stock closed at ₹140.55 on December 11, 2025, a slight decrease of 0.46%. Despite a recent dip of 6.83% in the last month, Adani Power is up 33.72% YTD.
Other companies recognized in the MOSL study as fast wealth creators include RVNL and Jindal Stainless.
What are Multibagger Stocks?
A "multibagger stock" is one that increases an investor's initial investment many times over. While there isn't a specific threshold, the term generally applies to stocks that rise at least five to ten times in value over several years. These stocks often belong to companies exhibiting high growth potential due to innovative business models, strong fundamentals, or presence in rapidly expanding industries.
Identifying Potential Multibaggers
Identifying these stocks early requires skill, patience, and thorough research. Investors often look for consistent earnings growth, high return ratios (ROE and ROCE), low debt, strong cash flow, competitive advantages, and visionary management teams.
Raamdeo Agrawal, Chairman of Motilal Oswal Financial Services, emphasizes the importance of investing in high-quality businesses with long-term compounding potential. He advises investors to carefully select these "compounders" and avoid the temptation of timing the market.
Broader Market Trends
Motilal Oswal Financial Services anticipates India's GDP to quadruple from $4 trillion in 2025 to over $16 trillion by 2042. The brokerage has identified 29 "compounding stocks" poised to benefit from India's shift towards a multi-trillion-dollar economy. They foresee significant opportunities in financials and capital markets, with enabling digital onboarding driving increased retail participation.
Real Estate and Silver Investments
Knight Frank's Vivek Rathi suggests real estate is emerging as a stable, yield-oriented asset for 2026, offering stability and income generation. The Indian hotel sector is also experiencing strong growth, driven by recovery across various segments. Additionally, silver prices have surged to record highs, driven by industrial demand, supply deficits, and global economic uncertainties, anticipating further gains.
