homevideos Newsmarket Newsstocks NewsEdelweiss’ sees huge growth opportunity in SIS India, TeamLease, Quess; recommends a buy
Edelweiss’ sees huge growth opportunity in SIS India, TeamLease, Quess; recommends a buy
Edelweiss Financial Services has written a report on India’s business services sector and they believe that it's a multiyear opportunity and that the growth in the sector will remain accelerated over 6-7 years.
To discuss the report at length, CNBC-TV18 spoke to Aditya Narain, Head of Research and the author of the report Alok Deshpande, Edelweiss Securities.
Sharing the rationale for picking up the services sector, Narain said that it forms the large part of the economy and the sector stands at an inflection point.
“This is a very significant market space both in terms of how it is likely to grow and stock opportunity it tends to provide,” said Narain.
Deshpande said they have covered two segments in the space. First is private security services and second is flexi staffing.
The house has a buy call on SIS India from private security services space and TeamLease , Quess in flexit staffing.
Both the segments are $10 billion in size already and have clocked about 18-20% CAGR in the past decade, said Deshpande, adding that this pace of growth is likely to continue over the next 6-7 years.
“By 2024-2025, these market sizes can triple in size,” said Deshpande.
Narain said the growth in this space will come for the more organised large players.
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