2,900 per cent multibagger returns; Board announces 1:1 bonus share & Rs 300 crore fund raise; Scrip trades at high ROE & high ROCE
The stock gave multibagger returns of 330 per cent in 3 years and a whopping 2,900 per cent in 5 years.
Monarch Networth Capital Ltd has secured a substantial Rs 300 crore in funding through a preferential allotment of shares priced at Rs 560 each. This capital infusion is spearheaded by the company's promoter, Monarch Infraparks Private Limited, which contributed Rs 99 crore, and CEO Gaurav Bhandari, who invested Rs 25 crore. The strong participation of other marquee investors underscores the market's confidence in the company's growth prospects. In tandem with this financial boost, Monarch Networth has announced a 1:1 bonus share issue, rewarding existing shareholders. The company's financial performance has been impressive, with net profit surging from Rs 2 crore in FY20 to Rs 123 crore in FY24.
To further strengthen its corporate governance and expand its business operations, Monarch Networth has appointed MSKA & Associates as its new auditor, subject to shareholder approval. The company plans to leverage the fresh capital to enter new business segments, including Portfolio Management Services (PMS), scaling up its Margin Trading book, launching a Pre-IPO fund, and applying for a Mutual Fund license. Additionally, it aims to bolster its Debt Capital Market division and actively participate in IPO underwriting. These strategic initiatives are designed to drive future growth and create significant value for shareholders.
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Monarch Networth Capital Ltd is a financial services company offering stock broking, mutual funds, insurance, financial planning and more. They have a presence across India with a network of branches, business associates and partnerships with banks and insurance companies. The company has a history of successful transactions and has subsidiaries specializing in different financial services. The company has a market cap of over Rs 2,200 crore and has delivered good profit growth of 58.5 per cent CAGR over the last 5 years.
On Wednesday, shares of Monarch Networth Capital Ltd gained 0.59 per cent to Rs 671.95 per share with an intraday high of Rs 680 and an intraday low of Rs 661. The stock’s 52-week high is Rs 690.30 and its 52-week low is Rs 297.45.
The shares of the company have an ROE of 43 per cent and an ROCE of 52 per cent. The stock gave multibagger returns of 330 per cent in 3 years and a whopping 2,900 per cent in 5 years. Investors should keep this small-cap under the radar.
Disclaimer: The article is for informational purposes only and not investment advice.
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