Monarch Networth Capital Limited

Financial Services — Capital Markets · NSE

₹335.80+₹0.65 (+0.19%)

DalalBaazaar Score

73 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:55 pm

Understanding the Business

Company site ↗

The 60-second version of Monarch Networth Capital Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Monarch Networth Capital Limited, together with its subsidiaries, provides financial services to retail investors, mutual funds, institutional investors, foreign institutional investors, financial institutions and corporate clients in India.

IndustryCapital Markets

SectorFinancial Services

Employees355

Annual revenue₹206 Cr

How does it make money?

Turns over ₹206 Cr a year. Of every ₹100 of sales, about ₹88 reaches shareholders as profit, with ₹74 left at the operating level before interest, tax and depreciation. Each of its 355 employees supports ₹58.0 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹58.0 lakh

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC LIFE INS CO LTD, SBI LIFE INSURANCE CO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE13.7%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +36% while net margin moved +209% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+36%

Margin effect+209%

DalalBaazaar Score

73/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.24 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

76/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

78/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

14.7x

3Y Median

34.3x

40 monthly readings · mean 30.5x · range 12.6x–53.1x

Sector Median

58.4x

median of 3 sector peers

🟢Current valuation is approximately 57% below its 3y median of 34.3x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 75% below the peer median of 58.4x.

vs. its own history

Cheap

34.3x median over 40 months · -57%

vs. sector peers

Cheap

58.4x median of 3 peers · -75%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

17.1x

PEG

0.24

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 38.8% to 74.3% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on capital is falling
ROCE has declined from 27.3% to 23.5% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 350% against revenue growth of 36% — customers are taking longer to pay.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 38.8% to 74.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 57% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 75% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 8% a year✓ 10.9% CAGR
Latest reported year was -8.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 72%✓ 74.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 17%✓ 18.7%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 34.3x✓ 14.7x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 3 neutral · 3 weak

Market Cap

₹2,662 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.7x

Cheap

Cheap against the generic band

P/B Ratio

2.74x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹22.8

Profitable

Profitable on a per-share basis

ROE

18.7%

Strong

Strong capital efficiency

ROCE

23.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

3.83x

High

High leverage

Revenue Growth (YoY)

-8.3%

Shrinking

Sales are contracting

Profit Growth (YoY)

-0.2%

Falling

Profits are shrinking

Dividend Yield

0.30%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹106 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

62.6%

Good

Healthy core-business profitability

Net Margin

50.5%

Good

Strong bottom-line conversion

Current Ratio

2.32

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.24

Defensive

Steadier than the market

52W Range Position

59%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

348.1 / 367.3

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

34.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹151 Cr	₹220 Cr	₹232 Cr	₹206 Cr	+10.9%
EBITDA	₹59 Cr	₹177 Cr	₹194 Cr	₹153 Cr	+37.8%
EBITDA Margin	38.8%	80.6%	83.8%	74.3%	—
PAT (Net Profit)	₹43 Cr	₹123 Cr	₹149 Cr	₹181 Cr	+61.6%
EPS	₹6.35	₹9.09	₹19.89	₹22.81	+53.2%
ROE	19.4%	35.6%	18.7%	18.7%	—
ROCE	27.3%	43.7%	23.6%	23.5%	—
Total Debt	₹3 Cr	₹113 Cr	₹19 Cr	₹37 Cr	+135.5%
Free Cash Flow	-₹25 Cr	-₹114 Cr	₹14 Cr	₹106 Cr	—

🟢 Revenue has grown at 10.9% a year over 3 years.

🟢 EBITDA has grown at 37.8% a year over 3 years.

🟢 EBITDA Margin has risen from 38.8% to 74.3% over 3 years (+35.5 pts).

🟢 PAT (Net Profit) has grown at 61.6% a year over 3 years.

🟢 EPS has grown at 53.2% a year over 3 years.

🟡 ROE has held roughly flat at 18.7% over 3 years.

🔴 ROCE has fallen from 27.3% to 23.5% over 3 years (-3.8 pts).

🔴 Total Debt has grown at 135.5% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹25 Cr to ₹106 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,572 Cr

Total Liabilities

₹601 Cr

Cash & Equivalents

₹80 Cr

Operating Cash Flow

₹114 Cr

Capex

-₹8 Cr

Shareholding (proxy)

Institutional Holding

1.2%

Insider Holding

70.4%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

21 Aug 2026

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC LIFE INS CO LTD	58.4x	11.3%
SBI LIFE INSURANCE CO LTD	63.9x	13.7%

Recent News

1 positive1 mixed4 general

Ramkrishna Forgings share price up 34% in 2026; Monarch Networth sees 18% upside with ₹806 target— Here's why

Livemint, 13 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Ramkrishna Forgings Share Price: Monarch Rs 806 Target Why

Univest, 13 Oct

Nifty 50 at 26,500 in 4-5 months? Monarch Networth CEO points to 3 key triggers

The Economic Times, 13 Oct

Monarch Networth vs Nifty 50: Share Price Performance Compared

Univest, 07 Oct

Looking for money making shares? Monarch Capital picks Ramkrishna Forgings, TCPL Packaging - up to 20% upside

Livemint, 13 Oct

Monarch Networth shareholders approve ₹1 dividend and director re-appointment

scanx.trade, 28 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Watch Items

Revenue growth is negative (-8.3%) on the latest reported period — check if this is one-off or a trend.
This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

All 4 tripwires holding · see Key things to watch ↑