Arnold Holdings (537069)

Score breakdown: P/E: 1/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Latest quarter shows positive sales of ₹38 Cr and net profit of ₹2 Cr.
• Book value of ₹28.09 provides a measurable cushion; P/B of 1.56 is not excessively speculative.
• ROCE of 9.21% is higher than ROE, suggesting some underlying operating return above shareholder return.
• Market cap of ₹110 Cr leaves room for niche growth if management executes well.

Concerns

• Profit growth has collapsed by 48.64%, and sales have declined 3.08%.
• ROE is just 1.75%, yet P/E is 26.96, implying a high price for weak earnings power.
• Piotroski F-score of 3/9 points to weak financial health and operating deterioration.
• No dividend yield and promoter holding not disclosed; investors get no income and limited transparency.

AI Analysis

This is not the kind of business I would put on my watchlist without further proof. Arnold Holdings is a small NBFC with a market cap of ₹110 Cr. At ₹43.86, it is selling at 26.96 times earnings and 1.56 times book value. For a company earning only 1.75% ROE, that is a rich price. Graham taught me to pay a reasonable price for stable earnings power, not hope. Here earnings are going the wrong way: profit growth has fallen 48.64%, and sales have declined 3.08%. The Piotroski F-score of 3/9 reinforces the evidence of deteriorating financial health. A zero dividend yield means I am not being paid to wait while management stumbles. The latest quarter shows sales of ₹38 Cr and net profit of ₹2 Cr, but one quarter does not make a trend. The book value of ₹28.09 gives some floor, but at a P/B of 1.56 I am paying a premium for a business whose return on equity is below what I can earn in a fixed deposit. If the company can improve its capital allocation and earning power, maybe the story is different. But my job is not to predict; it is to protect principal. There is no moat visible, no dividend, no growth, and a weak balance-sheet score. This is a pass. I cannot classify it as a franchise; it is at best a candidate for the too-hard pile. If it trades closer to book value and shows several quarters of improving profits, I would revisit. Today, the price already celebrates an outcome that the fundamentals have not delivered.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer