Creating Value For Your Investments - Monarch Networth Capital Limited (1)

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MONARCH NETWORTH CAPITAL
CREATING VALUE FOR YOUR INVESTMENTS
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MONARCH
WHO ARE WE?
NETWORTH CAPITAL
Monarch Networth Capital Limited (MNCL) is one of
the leading financial services companies in
India. With over 25 years of experience in
capital markets, MNCL's clear focus is to create
value for its stakeholders
MNCL STRENGTH
Headquartered in Ahmedabad, Gujarat
_at_f Employee base of 400 Retail client base of
2.6lakh 60 branches 0 450 business partners
Business partners refers to sub-brokers/Authorized
Persons
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A TESTAMENT TO OUR VALUE CREATION V'
50 increase in Active Retail Clients in last 1
year
Multiple success stories across our Institutional
Equities business
Top-quartile performance by our Maiden Fund - AIF
15 returns1, since inception on our niche
Option Strategy that focuses on margin of safety
We promote a culture of entrepreneurship among
all our employees Through our Institutional
Equities business, we have created a strong
connect with 150 corporates and several asset
managers/investment houses ? Outcome of our
ability to add value through differentiated
work Our recent accolades Awarded as Top
Performer in OFS segment by BSE for FY19-20
"Creating value for customers is our credo and
motto and is based on the pillar of in-depth
research"
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WHAT MAKES US UNIQUE?
NETWORTH CAPITAL
GROWTH FOCUS
ENTREPRENEURSHIP
for all our capital market activities
in employees across all verticals
through consistent value-addition
lt? We mainly cover unique ideas with a deep-dive
study We recommend based on safety margin and
strong return potential lt? Fund management a
long-term strategy with primacy on corporate
governance Niche Option Strategy proposition
focuses on margin of safety, while delivering
double digit returns
0 MNCL acts as a bridge for all capital market
needs, throughout a corporate business' journey
Creating client delight across retail,
institutional and corporate is our foundational
goal
360 value addition is our goal, not a
transactional relationship
Division heads empowered to add value to clients
Multi-year engagements built through trust and
delivery of value-creation
Professionally managed with regular guidance from
promoters
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MAJOR ACCOMPLISHMENTS
NETWORTH CAPITAL
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Retail Business Expanding our reach
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Wealth Third Party Distribution
Diversifying clients' wealth
0 50 increase in active client base, in the
past one year 90 increase in digital
transactions in past one year
(gT Wealth products across asset classes catering
to diverse set of clients Option Strategy, a
low-risk derivatives-hedged product, with no
negative return month till date
(gf Collaborative effort with corporates
throughout their business life-cycle Bridging
gaps between the Intrinsic Value of businesses
vs. prevailing market value gf In-depth research
on stocks along with our bottom-up approach makes
investors tag us for reliability
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MAJOR ACCOMPLISHMENTS T
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(f Top quartile among best performing AIFs r
Stellar fund performance against Nifty within
same period r Strong testament to our talent and
processes
T Sole banker to Alembic Pharmas' INR 750 cr QIP
Advisor to KEI Industries'
INR 500 cr QIP
Advisor to Adani Total Gas' SAS transaction of
INR 5,152 cr
Sole Banker to Adani Green Energy OFS of INR 778
cr (in two tranches)
L_
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ETWlt
OUR BUSINESSES
NETWORTH CAPITAL
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MONARCH
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RETAIL BROKING
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OUR OFFERINGS
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gt
Equities Derivatives Trading
WHY CHOOSE US? Digital onboarding via e-KYC Wide
array of products across asset classes Superior
investing experience via DIY platforms across
Web, App EXE Strong in-house research
capabilities Client centric approach with a
clear focus to create value for all
stakeholders _at_ Awarded Best Regional Retail
Broker by NSE in 2018
Digital Account Opening
ETF, OFS, FFO, SGB etc.
/
RETAIL BROKING
Commodity Trading
J
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GLOBAL ACCESS Invest in US Markets with ease
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Overview MNCL Global Access offers an advanced
platform to invest in US Markets Global Access
not only allows investors to diversify their
portfolio but also provides them opportunity to
leverage a highly-evolved US market by investing
in popular global brands businesses that offer
superior growth opportunities With Global Access,
investors can invest in some high growth
companies2 like Netflix, Facebook, Apple,
Alphabet, Tesla etc.
2Company names are used for illustration purpose
only
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KEY FEATURES
0 Portfolio diversification 0 Access to new
growth opportunities 0 Enhanced performance 0
Create a nest-egg
WHY MNCL?
0 Digital onboarding Safe secure Own shares, in
fractions No minimum investment 0 Thematic
investments via Stacks
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INSTITUTIONAL EQUITIES Overview Success Stories
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OUR OFFERINGS
MONARCH
NETWORTH CAPITAL
TYPE OF REPORTS
This is how we create value, for all
stakeholders Showcasing niche and thinly covered
businesses with analysts' unique
perspectives Strong focus on mid small-cap
stocks Only or among few covering the companies
and hence primary port-of-call for our
clients Research team adds significant value to
the covered companies' managements through
insights - building trust, fostering multi-year
relationships Catering to diverse set of
institutional clients like mutual funds,
insurance, foreign portfolio investors, private
equity and wealth managers
INITIATING COVERAGE
EjW

THEMATIC ltS
REPORTS -ID
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COMPANY UPDATES
SECTOR 4
REPORTS iBeD
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INVESTMENT IDEAS
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High entry barrier business Leadership
positioning of TML lowest CoP ltgr Great track
record, great BS, superb return
ratios Best-in-class management quality growth
capex funded through internal accruals
lt0 Single digit valuation multiples at entry High
double-digit earnings growth in store
First and the only broker covering it (0 Strong
management access (0 Stock generated 120 returns
since coverage in 10 months
lt0 At initiation, it was trading at 20x FY22
PER lt0 Strong volumes led earnings growth
visibility
lt0 Highest potential volume growth of 6.5x on
FY20, 3x the nearest peer ltgr Most efficient
player with best-in-class opex and gas
sourcing lt0 Only private-MNC play in CGD
(0 (0 (0
First and the only broker covering it Strong
management access Stock up 13x since coverage in
1 year
(0 Highest RD spender in India which led to
robust product pipeline (0 US business grew by
40 CAGR during FY15-20 when peers were
decelerating Capex into complex generics (INR 30
bn.)
_at_ Was available at 13x PE (FY22E) vs peers at
gt18x Potential for US shortages / new capex was
under-appreciated by consensus
lt0 (0
Got right on the contrarian call on US
business Depth of coverage helped us to be the
sole managers to INR 750 cr QIP
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ltgr Largest domestic capacity of synthetic
leather Foray into PU leather manufacturing which
is 90 imported into India New foreign client
additions like Mercedes, Volkswagen and BMW
lt0 Was available at a low P/E valuation of 10x
FY22E IC estimates ltgr Greater focus on high-end
auto OEMs was being missed
lt0 In-depth research on peers especially
international ones lt0 Strong management access _at_r
Stock up 68 since coverage
lt0 lt0 lt0
lt0 Traded at single digit valuations across all
multiples lt0 Return ratios were set to expand
materially led by new projects
(0 First and the only broker covering it (0
Strong management access (0 Stock up 80 within
5 months of coverage
Consistently high cash-flow generating business
across cycles Huge investments were made for cost
savings and growth through internal
accruals Strong growth prospects ahead
(0 (0 lt0
lt0 Undiscovered sector Strong revenue/earnings
catalyst for re-rating Dividend discount model to
assess possible value
Duopolistic nature of business with entry
barriers Superior business model, high
margins Respectable return ratios, sustainable
ROE could well be higher
(0 Comprehensive study of the business model and
comparison with its (unlisted) peer Study on
global depository models (0 Stock up 117 since
coverage
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INSTITUTIONAL EQUITIES Some Highlight Performers
MONARCH
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Reco Date 29-06-2019 Reco Price INR 256 Prev
Close INR 502 Returns 96.2 Nifty Returns
32.6
Reco Date 19-10-2020 Reco Price INR 1275 Prev
Close INR 2064 Returns 61.9 Nifty Returns
31.4
Reco Date 06-05-2020 Reco Price INR 97 Prev
Close INR 855 Returns 778.3 Nifty Returns
68.6
Reco Date 08-01-2021 Reco Price INR 140 Prev
Close INR 285 Returns 103.2 Nifty Returns
9.0
TATA TATA METALIKS J
Reco Date 18-03-2021 Reco Price INR 266 Prev
Close INR 566 Returns 112.9 Nifty Returns
7.4
Reco Date 06-07-2020 Reco Price INR 492 Prev
Close INR 1273 Returns 158.7 Nifty Returns
45.2
MNCL one of few houses covering these stocks.
Through research-backed analysis, most of our
ideas have beaten Nifty
As on 20th July, 2021
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MONARCH
JETV
NETWORTH CAPITAL
FUND MANAGEMENT Alternative Investment Fund
(AIF) Managed by Monarch AIF Trust
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ALTERNATIVE INVESTMENT FUND
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53.3 abs.
returns3 against Nifty
returns of 32.7 in the same period
Fund USPs
r Closed ended fund with differentiated strategy
r Multicap focus with concentrated portfolio
positioning
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Performance driven fee structure
Delivering high absolute returns ltgf Investing in
limited number of high conviction stocks
Significantly higher than benchmark index returns
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SNAPSHOT OF MONARCH AIF's MAIDEN FUND
MONARCH
NETWORTH CAPITAL
MNCL CAPITAL COMPOUNDER FUND
FUND INVESTMENT STRATEGY
Sponsored by MNCL and registered with SEBI
Cat 3 AIF long-only equity fund Value added
investment strategy aligned to investors'
long-term goals 3 years term, extendable by 2
years
Focus on cash flow compounding Leadership
position in products/services Focus on high
incremental return generating businesses
Emphasis on under-researched and under-owned
businesses Valuations done on EV/OCF multiples
and cash flow discounting method with adequate
margin of safety
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INVESTMENT BANKING
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MONARCH
JETV
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THE MONARCH STRENGTH
VALUE CREATION
ENHANCING CAPITAL MARKET VISIBILITY
r Our focused approach has helped develop
strong corporate relationships MNCL group has
150 strong corporate connects which have lasted
several years
Comprehensive research reports and marketing
Strong connect with leading domestic MFs,
Insurances, AIFs, PMS and PE clients Gradual
inroads into the APAC region Key objective to
follow non-transactional approach of getting the
right price for our clients
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NETWORTH CAPITAL
OUR OFFERINGS
Equity Fund Raise
Valuation
ltgr Private Equity
Share Valuation Brand Valuation ESOP
Valuation Fairness Opinion Valuation for
Tax/FEMA Provision
SJ IPOs/FPOs QIPs/Private Placement ltgr Rights
Issue
MA
Corporate Actions
r Buy Side/Sell Side Joint Venture Strategic
Deals/Tie-Ups Cross Border (Inbound/Outbound)
Deals
Buy Back ltgr Delisting Open Offer
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INVESTMENT BANKING TRANSACTIONS MARQUEE
TRANSACTIONS
MONARCH
NETWORTH CAPITAL
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Sole banker to Alembic Pharmas' INR 750 cr QIP
r
adani Renewables
IPO I Initial Public , Offerings . Initial
Public Offerings (IPO) ? Osia Hypermart - 26th
March'19 ? Bombay Super - 17th April'18 INR 120
cr of IPO on SME platform
r
Advisor to Adani Total Gas' SAS transaction of
INR 5,152 cr Sole banker to Adani Green Energy'
INR 778 crOFS (in two-tranches)
Strong testament to our relationships
u
MAY UR UMQUOTERS LTD
_at_r
Advisor to KEI Industries' INR 500 cr QIP
Identified business at early stage INR 5 bn of
secondary market transactions
Identify businesses at early stage of growth.
Work closely with promoters / key shareholders in
their journey towards wealth creation
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WEALTH THIRD-PARTY PRODUCT DISTRIBUTION
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OPTION STRATEGY
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15.8 cumulative annualized returns1 as on 24th
June'21
3.00
Key objective is to consistently generate market
agnostic annualized returns of 14-16 Emphasis
on risk management over returns. Decent returns
for a low-risk product Since inception in Nov'19,
has generated positive returns with no instance
of drawdown Underwriting risk by selling options
and follow strict risk management norms
2.60
2.12
2.00
1.00
0.00
Nov Dec Jan Feb Mar Apr May
Jun Jul Aug Sep Oct Nov Dec
Jan Feb Mar Apr May Jun 19 19
20 20 20 20 20 20 20 20
20 20 20 20 21 21 21 21
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Absolute Returns ()
_. i
"Excellent returns considering low levels of risk"
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WEALTH DISTRIBUTION
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OFFERING HOLISTIC WEALTH CREATION MNCL offers a
wide array of multi-asset based financial
solutions that offers investment, protection and
growth to our valued clients and help them
achieve sustainable long-term wealth creation to
fulfil their life goals
MONARCH
NETWORTH CAPITAL
INSURANCE Life Non-life
MUTUAL FUNDS
Need-based insurance advisory to our clientele
Bridging gaps of uncertainties through systematic
and wide range of Life Insurance plans
Proprietary fund evaluation helps in deploying
quantitative and qualitative parameters
_at_ Creating model portfolios to maximize
risk-adjusted returns in real time through Equity
MF, Debt MF Debt-Equity mix Periodic
portfolio reviews to optimize returns _at_ Building
long-term corpus through SIPs to provide benefits
of compounding
Providing low-cost Health Insurance plans _at_
Wide range of General Insurance plans, including
Motor Travel Housing Critical Illness
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OFFERING HOLISTIC WEALTH CREATION
MONARCH
NETWORTH CAPITAL
FINANCIAL PLANNING
FIXED INCOME
Provide strategic financial planning to
accommodate your life milestones, at each stage,
while enabling you to fulfil your aspirations
Corporate FDs
MNCL offers variety of corporate fixed deposits
with varying interest rates, tenures, credit
quality and maturity
Solution-Oriented Bonds MNCL offers wide range of
bonds catering to diverse investment needs.
Investors can invest in Tax Free bonds, 54EC
bonds, NCDs or taxable bonds etc Sovereign Gold
Bonds With MNCL, investors can invest in SGBs
that offer good returns at negligible cost and
comes with a sovereign guarantee
Improving your financial portfolio with our
easy-to-comprehend, research-backed and
transparent advisory
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Looking forward to partner with you in your
journey to "VALUE CREATION"
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Thank You
T0 Free 1800 22 0223 Email
reachus_at_mnclgroup.com Website
www.mnclgroup.com
Monarch Networth Capital Limited (hereinafter
MNCL) Registered Address Unit No. PO4-01D, 4th
Floor, Tower A, WTC Gift City, Block No. 51, Road
5E, Zone - 5, Gift City, Gandhinagar - 382355,
Gujarat. Website www.mnclgroup.com Contact
Details (T) 079-26666500/6600500 (E)
reachus_at_mnclgroup.com. Registration Numbers NSE
Member ID 06386 BSE Member ID 197 SEBI Reg
- INZ000008037 MCX Member ID 10585 NCDEX
Member ID 00011 AMFI Reg ARN 8812 Research
Analyst No. INH000000644 PFRDA Registration
Number POP 06092018
Disclaimer Investments in securities market are
subject to market risks, read all the related
documents carefully before investing. Brokerage
will not exceed the SEBI prescribed limit. The
securities quoted are exemplary and are not
recommendatory. Past returns are not indicative
of future results. Investment in Mutual Funds are
subject to market risks. Insurance is subject
matter of solicitation. MNCL is a distributor of
third part products like MF, Corp FDs, Insurance
(Life/Non-life), Bonds etc. 1Option Strategy
related disclaimer Return calculation has been
done on average fund utilized (weighted average).
Monthly return calculation is done for expiry
period. Brokerage cost is excluded from Gross
Premium however penal interest (on short in
required margin_ and charges other than brokerage
cost, are not excluded from realized/MTM PL.
Returns mentioned are calculated only for the
trades advised under option strategy product.
Past performance doesn't guarantee future
returns please read disclaimer and risk factors
carefully on https//bit.lv/3xRFiXZ. 3AIF
related disclaimer i) MNCL Capital Compounder
Fund (SEBI Registration no. IN/AIF3/20-21/0787)
is the maiden long only Cat 3 AIF Equity Fund of
Monarch AIF which in turn is sponsored by Monarch
Networth Capital Ltd., ii) Fund inception date is
23rd Oct, 2020, and AIF returns are from 23rd
Oct, 2020 to 20th July, 2021, iii) Returns are
net of fees and transaction costs and includes
dividend income but are on pre-tax basis, iv)
Nifty50 TRI returns on pre-tax basis during the
A
/
same period stood at 32.7.
Version V1-20/07/21