### **Overview** Monarch Networth Capital Limited (MNCL) is a listed, diversified financial services company with over 30 years of experience in the Indian financial markets. Listed on both the BSE (since 1994) and NSE (since 2022), MNCL has evolved from a traditional retail broking firm into a comprehensive financial services provider. As of FY2024, the company serves over **300,000 registered clients** across **140+ cities** in over 20 states through a network of **55 branches** and more than **900 business associates**. With a market capitalization of approximately **₹2,500 crore** (as of Apr 2025), MNCL has successfully transformed its business model since 2019—shifting from a transaction-based, market-sensitive revenue stream to a diversified, stable, and annuity-like income structure. --- ### **Core Business Segments & Services** MNCL operates across three primary segments: 1. **Broking and Related Services** – Largest contributor to revenue. 2. **Non-Banking Financial Business** 3. **Insurance Business** Its comprehensive service offerings include: - Retail Broking (Equities, Commodities, Currency, Derivatives, e-IPOs) - Institutional Equities & Research - Investment Banking (IPOs, QIPs, FPOs, M&A, Block Deals) - Wealth & Third-Party Product Distribution (Mutual Funds, Insurance, Unlisted Equity, AIFs, PMS) - Alternative Investment Fund (AIF) Management - Debt Capital Markets - Global Access (U.S. market investing) - Asset Management - Loan Against Securities --- ### **Revenue Diversification & Financial Performance** MNCL has strategically diversified since FY20 to reduce reliance on volatile transaction-based income. This transformation has led to more **predictable and resilient revenue streams**. #### **Key Financials (First 9 Months of FY25 – Apr 2025):** - **Total Income**: ₹266.2 crore - **Profit After Tax**: ₹124.6 crore - **Net Worth**: ₹771.5 crore (strong balance sheet) #### **Revenue Breakdown (FY24):** - **Fees & Commission (Broking)**: ₹127.92 crore - **Interest Income**: ₹71.99 crore - **Investment Banking (Merchant Banking)**: ₹43.86 crore (↑138.5% YoY) - **Asset Management**: ₹8.99 crore - **Non-Banking Finance**: ₹8.26 crore - **Insurance**: ₹1.68 crore #### **Segment Profitability (Feb 2025):** - **Broking & Related Services**: - PBTI: ₹5,320.20 lakh → ₹17,094.09 lakh (strong growth) - **Non-Banking Financial Business**: ₹88.94–755.81 lakh - **Insurance Business**: ₹7.98–141.27 lakh - **Total Segment Net Income (pre-interest/tax)**: ₹17,991.17 lakh --- ### **Strategic Expansion & Future Initiatives** MNCL is actively expanding into new high-growth areas: #### **Mutual Fund Business** - Received **in-principle SEBI approval** to launch mutual fund operations. - Formal application submitted in FY25; working closely with regulators on compliance. - Part of a strategic move to strengthen the **asset management franchise**. #### **GIFT IFSC & International Expansion** - Among the **first non-AMC companies** to receive an **FME (Retail) license** at GIFT City. - Plans to **launch equity-focused funds from GIFT City by FY26**, targeting foreign investors. - Supports international diversification and institutional credibility. #### **Alternative Investment Funds (AIF)** - Operates under **Monarch AIF**, managing over **₹900–1,000 crore** in AUM across two schemes: - **MNCL Capital Compounder Fund (Closed)**: Delivered ~23–23.5% CAGR; returned capital ahead of schedule. - **MNCL CCF-1**: Raised **₹252 crore** (3.5x first fund); fully subscribed via internal network. - **MNCL CCF-2**: Closed Apr-May 2024; strong repeat investments reflect client trust. - Plans to launch **third Category III AIF**, targeting ₹500–1,000 crore. - Focus: Long-term, high-conviction investments in **quality small & mid-cap stocks** with strong I-ROCE, free cash flow, and growth visibility. #### **Portfolio Management Services (PMS)** - Planning to launch PMS offerings to expand the fund management platform. - Aims to provide **high-net-worth individuals (HNIs)** with customized investment solutions. #### **Digital & Technology Transformation** - Heavy focus on technology as a **strategic enabler** for customer acquisition, activation, and operational efficiency. - Investment of **₹1,000 crore over 3 years** (from Aug 2022) to: - Fully digitalize retail broking - Upgrade infrastructure - Launch enhanced mobile app, website, data analytics - Expand social media engagement - Enables **DIY trading**, e-KYC, and seamless client onboarding. --- ### **Business Model & Operating Strategy** - **Customer-First Approach**: Focus on long-term relationships, personalized service, and understanding individual financial needs. - **Value-Based Model**: Transitioned from transactional to value-driven, reducing volatility and improving sustainability. - **Distributed Distribution Network**: Combines owned branches and 900+ business associates for wide reach. - **Research-Driven**: Over 180 relationship managers leverage in-house research for wealth creation. - **Technology-Enabled**: Investment in digital platforms improves scalability, efficiency, and client experience. --- ### **Research & Investment Philosophy** - **Sector-Agnostic**, focused on **undervalued, under-researched small & mid-cap stocks**. - Research methods: Field surveys, channel checks, direct interactions with corporates. - **Power Ideas**: Flagship quarterly research product offering 5–6 high-conviction ideas. - 4 out of last 6 ideas outperformed benchmarks as of Mar 2024. - Historically delivered **mean return of 46.66% in Q3 FY23** vs Nifty 50 (31.66%) and Nifty 500 (38.16%). - **Historical XIRR of research calls**: 35% since 2019. - Published over **175 reports in FY24**; conducted 38 corporate roadshows. --- ### **Investment Banking – Rapid Growth** - Revenue: ₹43.9 crore in FY24 (↑138.5% YoY from ₹18.4 crore in FY23). - Key transactions executed: - **Exicom Tele-Systems IPO**: ₹5,000 million; oversubscribed **133x** - **IRM Energy IPO**: ₹5,450 million; oversubscribed **27x** - **HFCL QIP**: ₹3,500 million - **Dharmaj Crop Guard IPO**: ₹251.1 crore; subscribed **37x** - Completed first M&A advisory: **Borosil’s acquisition of Goel Scientific Glass** - Strong pipeline in IPOs, QIPs, and block deals. - Focus on companies with **strong cash flows and shareholder value creation**, supported by relationships with PE firms, DIIs, FIIs, and family offices. --- ### **Wealth & Third-Party Distribution** - Offers wide range: Mutual funds, insurance, AIFs, PMS, unlisted equities. - Plays key role in **bridging retail debt market gaps** (transparency, awareness). - Provides end-to-end **debt structuring and distribution** services: - Raised ₹75 crore CP for clients (FY23) - Over ₹650 crore turnover in first 7 months of new business - Empanelled with **50+ institutional clients** (banks, insurers, MFs) --- ### **Global Access** - Allows Indian investors to invest in **U.S. markets**, enabling portfolio diversification. - Provides access to **global high-growth brands**. --- ### **Leadership & Governance** - **Gaurav Bhandari** – CEO, over 17 years of financial markets experience, IIM Calcutta alum. - **Vaibhav J Shah** – Leads multiple verticals: Retail Broking, Institutional Equities, Investment Banking, Fund Management, WTPD, Debt Capital Markets. Ex-Centrum Broking, ICICI Securities. - **Ms. Manju Bafna** – Chairman & Whole-time Director, 27+ years in capital markets and HR. - **Ms. Avni Chouhan** – Independent Director, founder of Avni & Associates (CS firm). - **Mr. Chetan Bohra** – Independent Director, CA with 16+ years in real estate finance, ex-KPMG. --- ### **Human Capital & Operations** - **Wage Cost Distribution (FY24)**: - 85.93%: Metropolitan areas - 14.7%: Urban areas - 0%: Rural/semi-urban - No significant local sourcing; business highly tech-driven. - Local procurement limited to minor branch consumables. - Over **200 relationship managers**; 180+ dedicated to wealth management. --- ### **Corporate Milestones** - **2019**: Began transformation from pure broking to diversified financial services. - **2020**: Launched first AIF (MNCL Capital Compounder Fund); raised ₹70 crore via internal network. - **2022**: Merger of Monarch Group and Networth Stock Broking; launched second AIF. - **2023**: Investment banking revenue ↑175% YoY; executed multiple IPOs and first M&A. - **2024**: MNCL CCF-2 launched; strong investor trust; Power Ideas outperform benchmarks. - **2025**: In-principle SEBI approval for mutual fund; GIFT IFSC entry; AIF AUM at ₹1,000 crore. ---