- Nirav Sheth sees India's wealth growth in tech-driven, capital-efficient businesses with structural growth
- Investors should focus on nimble NBFCs, platform firms, manufacturing, and renewable energy sectors
- Platform companies have low consumer costs and are expected to have strong margins over 5-10 years
Technology platforms have been gaining traction in the last few months, and Nirav Sheth, CEO of Institutional Equities at MK Global Financial Services believes that India's next leg of wealth creation will come from businesses that combine technology, capital efficiency and structural growth.
Forget chasing the Nifty heavyweights, according to him, the real opportunity lies in nimble NBFCs, rising platform companies, and India's fast-expanding manufacturing and renewable energy plays.
From backing quick commerce platforms like Blinkit (owned by Eternal) to spotting strength in Aditya Birla Capital and L&T Finance, Sheth believes investors who look beyond large caps will find India's next generation of compounders.
He expects newer firms like Lenskart and other platform companies to eventually become part of the Nifty index, bringing diversification to Indian equities.
Sheth argues that the market is still underestimating these growth stories. “Platform companies have the lowest-cost access to consumers,” he said. “Over the next five to ten years, their margin profile will be much stronger than people expect.”
Commenting on valuations, Sheth said market dynamics are working as they should. “There's a free market if someone wants to sell, they can sell; if someone wants to buy, they can buy,” he remarked, citing Ather Energy as an example where investor sentiment quickly turned positive.
Sheth remains particularly bullish on NBFCs, citing their agility and profitability. “Some of the AAA-rated NBFCs are growing at 20–25% with low credit costs, while private sector banks are barely in high single digits,” he noted, adding that easing interest rates could tilt the advantage further in their favour.
Quick commerce, he said, is another space with surprising depth. “D-Mart operates with about Rs 12,000 per square foot of capital employed, while Blinkit uses about Rs 4,000 — and its mature stores are already generating 35% internal returns,” he explained, drawing parallels with the early days of telecom growth in India.
In manufacturing and renewables, Sheth sees long-term, structural tailwinds. “You're already seeing Apple scale up to $30 billion in iPhone exports from India. Renewable power is now approaching parity with thermal prices — these are 15- to 20-year stories in the making,” he said.
As he sums it up, Sheth's market thesis is simple but sharp: India's next leg of wealth creation will come from businesses that combine technology, capital efficiency and structural growth. “The broader market still has more promise than the Nifty,” he said. “The next decade belongs to those willing to look beyond the obvious.”
However, Sheth voiced concern about India's limited role in the artificial intelligence revolution. “The underlying technology is profound, but we have zero play there,” he warned. “We might even be on the wrong side of its impact.”
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