Arnold Holdings Ltd.

Financial Services — Asset Management · BSE

₹19.71+₹0.20 (+1.03%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

The 60-second version of Arnold Holdings Ltd. — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Arnold Holdings Ltd. operates as a non-deposit-taking non-banking financial company in India.

IndustryAsset Management

SectorFinancial Services

Employees47

Annual revenue₹167 Cr

How does it make money?

Turns over ₹167 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 47 employees supports ₹3.55 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.55 Cr

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC BANK LTD, ICICI BANK LTD., STATE BANK OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE16.5%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +2% while net margin moved +13% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+2%

Margin effect+13%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 6.8% is weak

Quality vs. Valuation

Company Quality

50/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

84/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

4.0x

3Y Median

10.6x

40 monthly readings · mean 13.9x · range 4.9x–40.3x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 63% below its 3y median of 10.6x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 77% below the peer median of 17.0x.

vs. its own history

Cheap

10.6x median over 40 months · -63%

vs. sector peers

Cheap

17.0x median of 4 peers · -77%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

8.2x

PEG

0.78

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Receivables growing faster than sales
Receivables are up 137% against revenue growth of 2% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 70% against revenue growth of 2% — stock may not be moving.

Red Flags

1 item require attention · 1 high

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.9x — little room if earnings dip.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 63% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 77% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Growth barely outpaces inflation
Revenue compounding at 0.8% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 7%✓ 8.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 6.8%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Interest cover stays above 3x✗ 1.9x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✗ 0.8% CAGR
Latest reported year was 58.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Valuation vs its own median of 10.6x✓ 4.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹47 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

4.0x

Cheap

Cheap against the generic band

P/B Ratio

0.72x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹4.97

Profitable

Profitable on a per-share basis

ROE

6.8%

Weak

Weak capital efficiency

ROCE

15.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.32x

Moderate

Moderate leverage

Revenue Growth (YoY)

58.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-17.0%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹23 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

9.8%

Average

Average margins

Net Margin

2.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.94

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.56

Defensive

Steadier than the market

52W Range Position

68%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

18.6 / 16.5

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

44.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹163 Cr	₹205 Cr	₹200 Cr	₹167 Cr	+0.8%
EBITDA	₹12 Cr	₹20 Cr	₹13 Cr	₹15 Cr	+7.3%
EBITDA Margin	7.2%	9.9%	6.5%	8.7%	—
PAT (Net Profit)	₹4 Cr	₹9 Cr	₹5 Cr	₹4 Cr	+5.1%
EPS	₹1.27	₹3.71	₹2.24	₹1.86	+13.7%
ROE	6.4%	16.1%	8.8%	6.8%	—
ROCE	13.1%	15.5%	16.8%	15.0%	—
Total Debt	₹73 Cr	₹60 Cr	₹84 Cr	₹86 Cr	+5.5%
Free Cash Flow	-₹9 Cr	₹27 Cr	-₹12 Cr	₹23 Cr	—

🟡 Revenue has been broadly flat over 3 years (0.8% a year).

🟢 EBITDA has grown at 7.3% a year over 3 years.

🟢 EBITDA Margin has risen from 7.2% to 8.7% over 3 years (+1.5 pts).

🟢 PAT (Net Profit) has grown at 5.1% a year over 3 years.

🟢 EPS has grown at 13.7% a year over 3 years.

🟡 ROE has held roughly flat at 6.8% over 3 years.

🟢 ROCE has risen from 13.1% to 15.0% over 3 years (+2.0 pts).

🔴 Total Debt has grown at 5.5% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹9 Cr to ₹23 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹173 Cr

Total Liabilities

₹108 Cr

Cash & Equivalents

₹12 Cr

Operating Cash Flow

₹23 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

1.1%

Insider Holding

65.9%

Corporate Actions

Ex-Dividend Date

21 Sept 2015

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
STATE BANK OF INDIA	10.3x	15.2%

Recent News

1 mixed5 general

Arnold Holdings Ltd. Peer Comparison – Compare with Others

Value Research, 07 Oct

Arnold Holdings publishes open offer DPS at ₹12.50 per share

scanx.trade, 18 Sept

This Penny Stock Under Rs 20 Jumped Over 20% In Trade. Know Why

NDTV Profit, 09 Sept

Arnold Holdings Q1 FY27 Results: Revenue & PAT Highlights

Univest, 11 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Arnold Holdings Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 11 Sept

Arnold Holdings open offer triggered at ₹12.50 per share

scanx.trade, 08 Sept

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

3 of 5 tripwires tripped — Return on equity stays above 8%; Interest cover stays above 3x; Revenue growth stays above 4% a year · see Key things to watch ↑