**The big picture:** India's listed manpower services companies, generating significant revenue, are trading at a low valuation of just 0.3 times sales, indicating market undervaluation despite robust growth. **Why it matters:** This signals a potentially overlooked investment opportunity in a critical and expanding sector, driven by formalization and infrastructure development, impacting staffing firm strategies and market positioning. **Between the lines:** - The sector generated Rs 49,100 crore in revenue but has a combined market capitalization of only Rs 14,700 crore. - Growth is fueled by companies outsourcing non-core roles and stricter labor compliance pushing businesses to organized staffing providers. - Specialized players like ANI Integrated Services are seeing high growth from India's investment cycle in infrastructure and energy. **Staffing & HR impact:** The formalization trend and demand for specialized skills will drive increased recruiter mobility and potentially higher margins for firms adept at niche placements. Compliance expertise will be a key differentiator for staffing providers. **The bottom line:** The Indian manpower services market is poised for continued expansion, offering significant opportunities for both general and specialized staffing firms.