Note: This website is currently under development (Beta Version) and is not operational for Users. Contact us on +91 9004560540 for any queries.
Omni Commercial Czars Theme

India’s service sector: A prime opportunity for sustained profitability and global leadership.

Recommended Investment

Amt >

₹ 4 Lakh

Min Investment

₹ 1,00,000/-

Get acess for

₹ 9400/6m
Our Team

Why should you Invest in Smallcase?

About the Smallcase

RATIONALE:

  • Service sector is the largest contributor to India’s Gross Value Added (GVA), accounting for 55% of the total GVA in 2024. It has grown at a CAGR of 10.3%, from ₹92 trillion in FY19 to ₹149 trillion in FY24. Notably, three-year CAGR in Services GVA is at 16% from FY21 to FY24. India has transitioned from an agriculture-driven economy to a service-oriented one and over the next decade, it is expected that the services GVA share may go above 60%, and thus, creating a $6 trillion opportunity in the services space.
  • Service sector with a PMI of 58.5 in Mar 2025, has been in expansionary zone (>50) from Aug 2021, reflecting the sectors’ resilience & capacity for sustained long-term growth. The share of services in rural areas’ monthly per capita expenditure has increased from 10% in 1999-2000 to 20% in 2022-23, and in urban areas from 22% to 30%, reflecting growing demand.
  • India is a major player in global services exports, ranking 7th worldwide and 2nd among developing economies, with a 4.3% share in global exports valued at $338 bn in 2023 ($375 bn in 2024). To achieve India’s ambitious export target of services worth $1 trillion by 2030, the sector aims to grow at a CAGR of more than 15%. 
  • Action plan under the Champion Services Sectors Scheme (CSSS) focuses on 12 identified Champion Services Sectors, including IT, Tourism & Hospitality, Transport & Logistics, Finance Services, Education, Medical Tourism, Legal, Communication, Construction & Engineering, Retail and others. Commercial Czars smallcase aims to identify potentially high-growth and undervalued companies from a focused pool of more than 400 companies from the above services sectors.

VIDEOS:

NOTE:

  • Holding Period: The minimum holding period should be preferably 5 years but at least 3 years.

DISCLAIMER:

Methodology

Defining the universe

Primarily the stocks/securities which are exposed to, “Service Sector” growth vector. The universe shall include securities from primary as well as secondary ecosystems that are favorably impacted by the long-term growth potential effected by the growth vector and are traded on the National Stock Exchange. The universe includes the full value chain and the extensively defined ecosystem. The flexibility provided by the extensively defined ecosystem allows for a wider investment universe and significantly enhances the chances of finding mispriced opportunities while still benefiting from the growth vector.

Research

The portfolio is based on the Scientific Investing framework which sifts through the defined portfolio universe and weeds out capital destroying equities based on an analysis of the balance sheet, cashflows, growth and valuation. It curates a portfolio of capital multiplying companies with SuperNormal Profitability (economic alpha) arising from persistent competitive advantages and growth opportunities (growth alpha). A superior valuation toolkit further capitalizes on Mr. Market’s behavioral errors and selects companies available at SuperNormal Prices (value alpha), i.e. below their intrinsic values.

Constituent Screening

The Scientific Investing Framework helps building a portfolio of SuperNormal Companies @ SuperNormal Prices exhibiting the following attributes:

  • Fundamental Balance sheet Strength
  • Persistent Competitive Advantage
  • Large Growth Opportunity
  • High Earnings or Cash Flow Yield
  • High Compounding or Growth rates
  • High Cash or Low Debt to MarketCap
Weighting

The portfolio allocation can depend on the degree of undervaluation. Securities that have higher discount to intrinsic value can be given higher weightage and vice versa. Securities with similar discount to intrinsic value are, typically, given roughly equal weightages.

Rebalance

This smallcase will be rebalanced on an as-needed basis.

Portfolio

Trending Portfolio

Omni Bharat Defence Theme

Min Investment

₹ 86,642/-

Get access for

₹9400/6m
Omni Power – Electrifying India Theme

Min Investment

₹ 82,071/-

Get access for

₹9400/6m
Omni Banking on Growth Theme

Min Investment

 ₹ 87,868/-

Get access for

₹9400/6m
Omni Smallcap Supertrons

Min Investment

₹ 82,353/-

Get access for

₹9400/6m