Arth Business Services Theme

Key Points:

• Smallcase Type: Equity Thematic
• Suitable For: Long Term Investors
• Risk Profile: Aggressive
• Recommended Holding Period: 3 to 5 Years and more.
• Recommended Investment: Upto 10% of your Equity allocation.

Rationale:

• Services dominate India’s economy with 55%+ share and are also the fastest growing engine of GDP, fueling the majority of new job creation across digital, retail, logistics, and consumer facing sectors.
• On-demand digital platforms are exploding; ride-sharing, food delivery, eCommerce, and quick commerce are driving an unprecedented surge in gig work, creating a $455 billion gig economy and up to 90 million long-term jobs.
• Massive growth in organized retail, corporatization and tech adoption is powering demand for professional staffing, managed services, and facilities management, turning these once fragmented services into high-growth, scalable industries.
• Large, underpenetrated markets with strong tailwinds, Staffing & recruitment is a $18 billion market growing at 13%, while facilities management is a $28 billion market growing at 14%, set to double to $61 billion by 2030 creating explosive runway for listed players.
• This is a pure play structural growth opportunity. Business services benefit from digitalization, formalization, and scale effects, enabling long term compounding with low capex, high cash generation, and massive market expansion.

Disclosure:

• https://arthscience.in/disclosures/