Prominent investors Mihir Vora and Samir Arora have argued that concerns over "new age" company valuations in the Indian stock market are not novel but part of recurring market cycles driven by "creative destruction". Vora, Chief Investment Officer at TRUST Mutual Fund, emphasised that high valuations for emerging business models have historically accompanied disruptive growth phases, questioning whether current premiums truly reflect long-term potential or mere euphoria.

In a widely discussed social media post, Vora highlighted the BSE Sensex's evolution since 1987, noting that 24 of the original 30 companies are no longer in the index, with eight having ceased to exist due to mergers, takeovers, or bankruptcy. He pointed out that more than half of the current index weight comes from sectors once deemed "new", illustrating how innovative models transition from speculative to mainstream along the "S" growth curve.

Samir Arora, founder of Helios Capital, echoed Vora's views by citing Bharti Airtel's IPO, which listed at around USD 1 billion market cap while loss-making, drawing investor scepticism similar to today's new-age firms. Arora criticised the tendency to overreact when such companies turn profitable, inflating perceived P/E ratios by dividing share prices by minimal initial earnings.

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The discussion underscores the need for discerning genuine growth prospects amid apparent valuation stretches, rather than dismissing "new age" premiums outright. As markets evolve with technological and business disruptions, both experts advocate applying "wisdom and sanity checks" to separate sustainable opportunities from irrational exuberance in India's dynamic equity landscape.

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