1. ⚡ At a Glance
Monarch Networth Capital Ltd is the stealth bomber of the broking world – no influencer collabs, no CEO pep talks on CNBC, and yet a 5-year stock CAGR of 107%. With a diversified BFSI model spanning broking, IPO distribution, insurance, and margin funding, MNCL has quietly built up a ₹3,000+ Cr market cap with 26% ROE and an OPM that would make banks jealous. At ₹380, is it still a hidden gem or already discovered?
2. 🎬 Introduction with Hook
You’ve heard of Zerodha, you know Angel One, and maybe even shouted “Nuvama” in a spelling bee. But Monarch? Sounds like a Dehradun hotel.
Yet in reality:
- ✅ 5Y Profit CAGR: 131%
- ✅ ROCE: 33%
- ✅ Net Profit FY25: ₹149 Cr
- ✅ PE = 20.2 (vs Angel’s 21.4)
So while the market’s chasing loud fintechs, this one’s been printing silent wealth.
3. 💼 Business Model – WTF Do They Even Do?
MNCL = Full-stack traditional finance + selective fintech scale.
Business segments:
- 🧾 Retail + Institutional Broking (Equity, F&O, Commodity, Currency)
- 🪙 Distribution: IPOs, Bonds, FDs, MFs
- 🛡️ Insurance broking: Life + General
- 🏦 Margin Funding + LAS
- 🧠 Investment Banking & Advisory
- 🗂️ Depository & Demat services
It’s not fancy. It’s just full.
4. 📈 Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | 162 | 278 | 327 |
| Net Profit (₹ Cr) | 43 | 123 | 149 |
| ROE | 26% | 30% | 26% |
| OPM | 40% | 64% | 66% |
✅ 10-Year Sales CAGR = 19%
✅ 10-Year Profit CAGR = 45%
✅ 3-Year ROE Avg = 30%
This isn’t a fluke. It’s a compounder.
5. 💸 Valuation – Is It Cheap, Meh, or Crack?
- CMP: ₹380
- P/E: 20.2
- P/B: 3.75
- Book Value: ₹102
Let’s run the EduFair™ Value logic:
- Normalized EPS (avg FY24-25): ₹18.5
- Assign PE of 18–22x (due to high but not fintech-like scale)
- 🔍 FV Range = ₹333 – ₹407
✅ Current Price: ₹380 = fairly valued but not euphoric
📌 Looks ripe for accumulation, not moonshots
6. 🍛 What’s Cooking – News, Triggers, Drama
- 🟢 Stake accumulation: Monarch Infrapark increased holding to 4.8% in June 2025
- 🟢 ESOPs exercised → signals employee confidence
- 🟢 Q4FY25 PAT: ₹25 Cr despite flat sales – margin magic
- 🟢 Debtor days improved from 92.8 → 70
- ⚠️ No mobile app buzz or digital-only pivot yet
While peers shout “Tech-led transformation,” Monarch whispers “Profitable since day 1.”
7. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY25 |
|---|---|
| Equity Capital | ₹78 Cr |
| Reserves | ₹718 Cr |
| Total Assets | ₹1,236 Cr |
| Borrowings | Just ₹9 Cr |
🟢 Debt-free almost.
🟢 Net cash company.
🟢 Can raise leverage if LAS/margin biz scales
8. 💵 Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | FCF Comment |
|---|---|---|
| FY24 | ₹-134 Cr | Expansion-heavy |
| FY25 | ₹+30 Cr | Operating normal |
🟠 Volatility due to working capital, not accounting shenanigans
🟢 Clean, conservative
9. 📊 Ratios – Sexy or Stressy?
| Ratio | Value | Verdict |
|---|---|---|
| ROE | 26.13% | 🔥 Hot |
| ROCE | 33.27% | 🔥 Hotter |
| OPM | 66% | 🔥🔥🔥 |
| P/E | 20.2x | Fair |
| Debt/Equity | 0.01 | Angel-tier |
| Dividend Yield | 0.13% | Not exciting, but fine |
Basically, this broking firm has balance sheet discipline of a PSU and margins of a SaaS.
10. 🧮 P&L Breakdown – Show Me the Money
FY25:
- Revenue: ₹327 Cr
- EBITDA: ₹217 Cr
- PAT: ₹149 Cr
- EPS: ₹19.02
- OPM: 66%
- 🟢 Tax rate: 23%
Even with flat topline in Q4FY25, the net profit margin stayed 🔥.
11. ⚔️ Peer Comparison – Who Else in the Game?
| Company | ROE | P/E | OPM | MCap (₹ Cr) |
|---|---|---|---|---|
| Angel One | 27% | 21.4 | 37.8% | ₹25,000 |
| Nuvama | 31% | 26.5 | 53.3% | ₹26,000 |
| IIFL Cap | 33% | 15.1 | 41.4% | ₹10,700 |
| Share India | 16% | 12.1 | 35.7% | ₹3,960 |
| Monarch | 26% | 20.2 | 66.0% | ₹3,015 |
💡 Monarch has top-tier margins, solid ROE, but trades at a fair (not cheap) valuation.
12. 🧬 Miscellaneous – Shareholding, Promoters
- 👑 Promoters: 52.78%
- 🧍♂️ Public: 45.03%
- 🏦 DII: 0.83% (just entered)
- 🌍 FII: 1.36%
- 📢 No big names, just solid operator pedigree
- 🛠️ 17,965 shareholders → retail buzz rising
13. 🧑⚖️ EduInvesting Verdict™
If broking stocks were parties:
- Angel is dancing with influencers 💃
- Nuvama is throwing cash at fintech upgrades 💸
- Monarch is in the corner making ₹149 Cr silently 🧘
This is not a “10x from here” story. It’s a:
“This can still double in 3 years without making noise” kind of stock.
📍 ROE: High
📍 Margins: Elite
📍 Valuation: Reasonable
📍 Risks: Liquidity, no digital virality
🔎 Watch this one. Could be the next steady compounding story in the capital markets jungle.
✍️ Written by Prashant | 📅 July 6, 2025
Tags: Monarch Networth, Broking Stocks, MNCL, Angel One Peer, Financial Services, Margin Funding, Smallcap Stock Analysis, EduInvesting
