Manishi Raychaudhuri says quick commerce earnings growth could be substantial for select players – CNBC TV18

Manishi Raychaudhuri, CEO of Emmer Capital Partners, sees significant growth opportunities in India’s ecommerce sector, particularly quick commerce, comparing it to China’s development over the past decade.

Ecommerce contribution to India’s retail market is in single digits compared to nearly 50% in China, which indicates huge scope for growth.

“What these companies (in India) would achieve in terms of sector growth and individual topline and earnings growth over the next decade or two is humongous,” he noted.

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While the competition in the sector could impact margins, he remains positive about the prospects of companies focusing on profitability.

Raychaudhuri also expects the better performance in discretionary stocks like jewelry, luxury hotels, and food delivery companies over the next decade as consumer preferences shift toward premium and online purchases.

In contrast, he is cautious about staples, citing high valuations and modest growth.

“Many frontline FMCG companies are trading at price-to-earnings multiples of 40–50 or higher, with earnings growth expectations in the low teens. That doesn’t excite me,” he remarked.

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Recent earnings warnings from staples companies about slowing urban and rural consumption also suggest that this segment may face challenges in the near term.