Debt Capital Market

What captured our attention

While the gems and jewellery space was going through its own set of challenges (in the backdrop of fall out of major jewellery players) we looked into Goldiam Int. given its technology expertise and product offering (lab-grown diamonds), the client market (100% export), superior balance sheet with net cash position, history of dividend payouts and buy-backs. Aspects like superior board, management too held meaningful importance.

Valuation Discrepancy Insights

At a market cap of ~Rs 12bn at time of initiation, Goldiam International was under-researched and under-valued given its growth potential and the promising US market opportunity.

Monarch Networth's Value-Added Contribution

Being the first one to cover the stock, we were able to market the story in a more effective and timely manner. Our comprehensive report including periodic channel checks / study of competitors provided comfort to our investors. Since our coverage initiation, the company's stock price has turned 2.7x, a testament to our insights and ability to pick up stocks at right time.

What captured our attention

Revenge travel was gaining prominence post the COVID pandemic. With tourism having hit the bottom, we were confident that Wonderla Holidays will gain momentum as economy opens and themes like amusement / water park play through. We choose Wonderla Holidays given its industry leading margins, debt-free balance sheet, ability to generate cash flows, EBIDTA/OCF conversion and management pedigree.

Valuation Discrepancy Insights

Wonderla Holidays was grossly undervalued given its existence capacity, new initiatives towards enhancing its visibility and upcoming parks.

Monarch Networth's Value-Added Contribution

We were amongst the early one’s to initiate coverage on the stock in Feb-2023. We marketed the stock very aggressively to funds that saw the DII holding increase by more than 5% in a very short time. Market participants started accepting our thesis. Since our coverage initiation, the company's stock price has generated 1.5x, a testament to our insights and support.

What captured our attention

We liked FIEM due to its strong technology expertise and complete backward integration leading to best in industry margins along with an expanding client base in EV. Additionally, FIEM’s continuous drive for business expansion especially on the 4W lighting business bolstered our conviction.

Valuation Discrepancy Insights

FIEM was undervalued in comparison to its business expansion plans, thereby driving our re-rating thesis.

Monarch Networth's Value-Added Contribution

We take extreme pride in being the first and sole broker to initiate coverage on FIEM Industries. Our detailed and insightful report offered a compelling investment thesis, while providing clients a detailed perspective of the management and the company. Since initiating the coverage for FIEM, It’s stock price has sky-rocketed 2.5x, a clear testament to the value of our insights and the support we provide. With in-depth analysis and regular updates, we have become the go-to resource for our clients, ensuring they are always informed and empowered to make the right decisions.

What captured our attention

Alembic Pharma emerged as a standout with the nation's highest R&D investment in the pharmaceutical sector. Their robust product pipeline drove an impressive 40% year-on-year expansion in the US market from FY15-20. Additionally, substantial investments in complex generics (INR30bn) reinforced its dominant market position.

Valuation Discrepancy Insights

At the outset, the company traded at a modest 13x PE (FY22E) compared to peers at over 18x. The consensus failed to grasp the potential of US supply shortages and the impact of increased capital expenditure.

Monarch Networth's Value-Added Contribution

We distinguish ourselves as one of the select brokers covering Alembic Pharma. Our clients benefitted from privileged access to senior management, facilitating informed investment decisions.

What captured our attention

Their dedication to self-reliance and their impressive international clientele, including BMW, Volkswagen, and Mercedes, showcased a shared commitment to excellence and innovation, making them a compelling partner for Monarch Networth Capital Limited.

Valuation Discrepancy Insights

We initiated coverage on the stock when it was trading at throw away valuations of 9.9x forward PE (FY22E) compared to its peers at 15x+. Market participants grossly missed out on the export opportunity in the PVC space given its niche product offerings and the long-standing relationships with various OEMs.

Monarch Networth's Value-Added Contribution

We distinguish ourselves as one of the only brokers covering Mayur Uniquoters. We analyzed its global peers, improved corporate visibility for our HNI / institutional investors, and created wealth for the stakeholders.

What captured our attention

Kirloskar Ferrous Industries stood out in the market, consistently surpassing its peers due to a solid mix of volume expansion and cost savings which can structurally improve its margins and provide multi-year growth prospects. All of this was largely pursued by internal accruals implying a strong balance sheet and solid cash flow generation.

Valuation Discrepancy Insights

Despite trading at single-digit multiples, Kirloskar Ferrous was poised for a significant increase in return ratios and reduction in commodity part of the business which in turn resulted in valuation re-rating.

Monarch Networth's Value-Added Contribution

We proudly led the way as the first and sole broker covering Kirloskar Ferrous Industries. Our comprehensive report offered fresh perspectives on business restructuring, future profitability and granted clients privileged access to senior management. Since our coverage initiation, the company's stock price has turned 4x, a testament to our insights and support.