Arman Holdings (538556)

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

Key Financials

Strengths

• Book value is positive at ₹11.69, so the company has some equity support.
• Reported profit growth of 900% shows an earnings base effect, even if from a low base.
• Piotroski F-Score of 5/9 indicates moderately sound financials, not severe distress.
• Small market cap of ₹38 Cr could allow niche flexibility if investments perform well.
• PEG ratio of 0.14 appears optically cheap, but only due to low-base profit growth.

Concerns

• P/E of 130.20 and P/B of 6.02 are far above what a 7.19% ROE justifies.
• Latest quarterly sales are ₹1 Cr and net profit is ₹0 Cr, showing negligible business activity.
• ROCE of -0.16% means the company is not earning a return on its capital employed.
• No dividend, zero sales growth, and quoted price below the stated 52-week range raise red flags.

AI Analysis

Arman Holdings is an investment company, so I first want to see what it actually owns and how the underlying investments generate returns. The surface figures fail that test. At ₹70.38, I am paying over six times book value of ₹11.69 for a business that earns only 7.19% on equity. That is a high price for mediocre returns. The latest quarter shows sales of just ₹1 crore and net profit of ₹0 crore; there is no meaningful operating engine. The 900% profit growth is a low-base illusion, not evidence of durable compounding. A P/E of 130.20 confirms the market is paying up for a tiny earnings bounce. ROCE is negative at -0.16%, meaning the capital employed is not even earning its cost. The stock trades below the stated 52-week range of ₹80.85–₹115.00, which is a warning about liquidity, sentiment, or data integrity. There is no dividend, so I receive no income while I wait. Ben Graham taught me to buy with a margin of safety, but a 6x price-to-book for a sub-8% ROE offers none. The Piotroski score of 5/9 shows only moderate financial health. This is not a business I can confidently value because the visible numbers are too small and the price too high. I need to know the portfolio quality, promoter alignment, and realised gains track record before I would even consider it. As it stands, the figures fail the Buffalo test.

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