Monarch Networth Capital Ltd Q2FY26: 77% Margins, 33% ROCE & A Bonus Shower – The Broking Bahubali with Billionaire Ambitions

1. At a Glance

If Dalal Street ever had a Netflix documentary, Monarch Networth Capital Ltd would star as“The Broking Bahubali: From Margin Calls to Millionaire Calls.”The stock closed at ₹306 (as of Nov 21, 2025) — down 8.6% in the last three months, but still strutting around with a market cap of ₹2,431 crore. Despite a -20% drop in quarterly sales, this broking house somehow managed a 2.3% profit growth and an OPM of77%in Q2FY26. Yes, seventy-seven. Even your friendly neighborhood kirana store has lower margins than this!

The company boasts a 33.3% ROCE and 26.2% ROE — numbers that would make even a PSU bank blush. Debt? Barely ₹11 crore. Dividend yield? A respectable 0.33%, just enough for a chai and maska bun at the stock café. Monarch has been minting profits faster than most investors can refresh their Zerodha page, with a five-year profit CAGR of 131%. Yet, the 1-year stock return is -22%. Dalal Street logic — the company performs, investors panic.

2. Introduction

Some companies crawl their way to success; Monarch Networth sprinted there, clutching demat accounts like trophies. Born from the merger of Monarch Group and Networth Stock Broking, this Ahmedabad-based firm now operates across 221 cities and 20 states. From equity broking to investment banking, from IPO distribution to insurance, they’ve got every financial service on the platter — basically, the “thali” of Indian capital markets.

But Monarch isn’t just about broking; it’s aboutbragging rights.They were the sole banker for Alembic Pharma’s ₹750 crore QIP and Adani Green’s ₹778 crore OFS. They even advised on Adani Total Gas’ ₹5,152 crore SAS deal. You might call them the “deal whisperers” of India Inc.

And because this is India, where “growth” means “bonus,” they dropped a1:1 bonus issuein FY25 right after raising ₹300 crore. The CFO changed, new subsidiaries got IFSC licenses in GIFT City, and the company’s alternative funds hit ₹729 crore. Monarch’s journey reads less like a corporate filing and more like a Bollywood screenplay — full of ambition, drama, and an occasional courtroom cameo for legal recoveries.

3. Business Model – WTF Do They Even Do?

Monarch Networth Capital is basically the Swiss Army knife of financial services.

They broker, bank, distribute, fund, insure, and even plan your retirement — all while probably judging your portfolio silently. Their product list is a buffet that includes:

• Broking in equity, commodity, and currency markets.
• Distribution of IPOs, FPOs, QIPs, mutual funds, bonds, FDs, and even NPS.
• Demat services, insurance broking, and margin funding.
• Investment banking, loan against securities, and portfolio advisory.

If it involves money moving, Monarch wants a piece of it.

Their tie-up with Punjab National Bank gives them reach in2,300+ bank branches.Imagine logging into your PNB account to open a Monarch trading account — “Nationalized meets Capitalized.”

They’ve also expanded into fund management via their AIFs. The first fund raised ₹70 crore, and the second closed at a massive ₹729 crore. With IFSC licenses in GIFT City, Monarch can now tap both Indian and offshore clients.

So, WTF do they even do? Everything. If it smells like finance, Monarch’s probably already monetized it.

4. Financials Overview

Commentary:Only Monarch could turn a sales drop into a profit increase — that’s broking black magic. While revenue slipped 20%, PAT still inched higher, thanks to their delicious 77% operating margins. Their annualized EPS stands at ₹22.7, making the P/E roughly 13.5 — below the industry average of 20.8. “Undervalued” is an understatement; this thing trades cheaper than your average financial influencer’s stock tip.

5. Valuation Discussion – Fair Value Range Only

Let’s keep it nerdy but spicy.

Method 1: P/E ApproachAnnualized EPS