Check Before You Invest : Monarch Networth Capital Ltd

Snapshot

Q.1 Which industry/sub-sector does Monarch Networth Capital Ltd belong to?

Monarch Networth Capital Ltd belongs to the BFSI sector, operating specifically within the Finance - Stock Broking segment.

Q.2 Is Monarch Networth Capital Ltd a good quality company?

Monarch Networth Capital Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Monarch Networth Capital Ltd undervalued or overvalued?

Monarch Networth Capital Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Monarch Networth Capital Ltd a good buy now?

Monarch Networth Capital Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Monarch Networth Capital Ltd?

Monarch Networth Capital Ltd revenue growth is 19.1% for FY-2025, which is below its 5-year CAGR of 42.63%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Monarch Networth Capital Ltd?

Monarch Networth Capital Ltd Return on capital employed is 32.7% for FY-2025, which is in line with its 5-year historical median of 32.7%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Monarch Networth Capital Ltd?

Monarch Networth Capital Ltd Return on Asset is 13.9%, which is above its 5-year historical median of 9.4%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Monarch Networth Capital Ltd?

Monarch Networth Capital Ltd Return on equity is 26.8% for FY-2025, which is in line with its 5-year historical median of 26.8%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Monarch Networth Capital Ltd?

Monarch Networth Capital Ltd Cash conversion cycle is -1110 days, above its 5-year historical median of -1473 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.31	0.27
ROE	26.8	26.8
ROCE	32.7	32.7
Cash Conversion Cycle	-1110 days	-1473 days

Q.6 Gross Profit margin of Monarch Networth Capital Ltd?

Monarch Networth Capital Ltd Gross profit margin which is the profit after deduction of direct costs, is 60.2% for FY-2025, which is above its 5-year median of 48.7%, indicating increasing margins.

Q.7 Operating Profit Margin of Monarch Networth Capital Ltd?

Monarch Networth Capital Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 66.58% for FY-2025, which is above its 5-year median of 43.48% indicating increasing margins.

Q.8 Net Profit Margin of Monarch Networth Capital Ltd?

Monarch Networth Capital Ltd Net Profit Margin is 44.65% for FY-2025, is above with its 5-year median of 35.44%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	60.2	48.7
Operating Profit Margin	66.58	43.48
Net Profit Margin	44.65	35.44

Q.9 Debt to Equity ratio of Monarch Networth Capital Ltd?

Monarch Networth Capital Ltd Debt-to-Equity ratio is 0.05, which is lower with the industry average of 0.11, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Monarch Networth Capital Ltd?

Monarch Networth Capital Ltd Debt to cash flow from operations is 2.03, which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Monarch Networth Capital Ltd?

Promoters hold 53.86% of the Monarch Networth Capital Ltd, with 5.47% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Monarch Networth Capital Ltd vs industry peers?

Monarch Networth Capital Ltd revenue CAGR is 42.63%, compared to the industry median CAGR of 18.37%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	19.1	18.4
Gross Profit Growth	23.6	24.6
Operating Profit Growth	24.4	28.8
Net Profit Growth	23.1	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.31	0.26
ROE	26.8	8.05
ROCE	32.7	10.2
Cash Conversion Cycle (days)	-1110.39	-107

Valuation & price assessment

Q.1 Stock return of Monarch Networth Capital Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 35.1% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	35.1%	57.9%	43.4%	0.6%

Q.3 Valuation ratios of Monarch Networth Capital Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	15.12	17.52	20.01
Price to Book	2.65	4.41	1.64
Price to Sales	7.16	7.47	5.20
EV to EBITDA	8.15	8.22	6.89

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