1. At a Glance – Blink and You’ll Miss the Margin
₹2,294 crore market cap. ₹290 stock price. ROCE north of 33%. ROE sitting pretty at ~26%. Quarterly PAT at ₹45.4 crore. Operating margins flirting with 70% like it’s a SaaS startup pretending to be a broker. And yet, the stock is down ~33% over one year. Welcome to Monarch Networth Capital Ltd, a company that prints profits like a disciplined CA prints audit remarks—neatly, quietly, and without drama—while the market yawns and scrolls to the next hot IPO.
This is a capital markets firm that has gone from “small broking house” to “full-stack BFSI buffet” with equity broking, commodities, currencies, investment banking, wealth, AIFs, insurance distribution, margin funding, LAS, and even a GIFT City avatar. Q3 FY26 delivered ₹91.2 crore revenue (up ~19% YoY) and ₹45.4 crore profit (up ~12% YoY). EPS for the quarter? ₹5.73. Annualised? We’ll get there—calm down.
Debt is basically a rounding error. Cash flows oscillate like a trader’s mood. Promoters hold ~53%, with minor pledge. Peer P/E median is ~20; Monarch trades at ~14.3. Is this undervalued, misunderstood, or just boring in a market addicted to adrenaline? Keep reading. Or don’t—and then complain later.
2. Introduction – A Broker That Grew Up
Monarch Networth is what happens when a traditional broking firm decides to stop living on brokerage crumbs and builds a proper capital markets franchise. Born from the amalgamation of Monarch Group and Networth Stock Broking, the company expanded into investment banking, wealth, AIFs, and distribution—basically saying, “If money moves, we want a commission.”
The result? A revenue mix that’s no longer hostage to daily trading volumes. Brokerage still matters, but interest income, advisory, and investment banking fees have stepped in like responsible adults. The firm has handled big-ticket mandates—QIPs, OFS, SAS deals—and raised hundreds of crores via its own AIFs. That’s not retail dabbling; that’s institutional credibility.
Yet, the market treats it like a sleepy midcap broker. Maybe because it doesn’t shout. Maybe because it doesn’t have a flashy app with confetti. Or maybe because
investors don’t know how to value a firm that has both high margins and cyclical exposure. Question for you: do you prefer loud growth stories or quiet compounding machines?
3. Business Model – WTF Do They Even Do?
Imagine explaining Monarch to a smart but lazy investor:
- Broking: Equity, commodity, currency. Bread-and-butter stuff.
- Primary Markets: IPOs, QIPs, OFS—where real fees live.
- Investment Banking: Advisory on big capital raises. This is where Monarch flexes.
- Wealth & Distribution: Mutual funds, bonds, FDs, NPS, insurance. Slow, sticky, annuity-like.
- AIFs: Category III equity funds that raise serious money from serious people.
- Margin Funding & LAS: Interest income with collateral—thank you, risk management.
- GIFT City: Because every ambitious BFSI firm needs a passport stamp.
The beauty? Operating leverage. Once the platform is built, incremental revenue drops straight to the bottom line. Hence those obscene margins. The risk? Cyclicality. Capital markets sneeze, brokers catch a cold. But Monarch has diversified enough that it won’t need ICU every time volumes dip.
Be honest—would you rather own a broker that lives on intraday traders, or one that earns fees even when markets nap?
4. Financials Overview – Numbers Don’t Lie, People Do
Quarterly Comparison Table (₹ crore)
| Metric | Latest Qtr (Dec’25) | YoY Qtr (Dec’24) | Prev Qtr (Sep’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 91.2 | 77.0 | 83.0 | 18.9% | 9.9% |
| EBITDA | 64.0 | 55.0 | 64.0 | 16.4% | 0.0% |
| PAT | 45.4 | 40.5 | 45.0 | 12.1% | 0.9% |
| EPS (₹) | 5.73 | 5.16 | 5.67 | 11.0% | 1.1% |
EPS Annualisation (Q3 rule):
Average EPS (Q1–Q3 FY26)
