Arnold Holdings Limited

Incorporated in 1981, Arnold Holdings Ltd is engaged in the business of providing Loans. Business Overview: Company is a non deposit taking non banking financing company and is engaged in lending to micro small and medium enterprises, and investment in shares. Company is a provider of private equity to companies across sectors viz., pharmaceutical research, high-end telecom technology, product development, media production services, technology, textiles, drug, manufacturing, construction, processed foods, components and tool fabrication and real estate. Revenue Breakup: In FY22, company generated revenue from Interest Income ~25%, Sale of Securities ~39%, Micro Loan Dues Income ~1%, Micro Loan Processing Fees ~34%. The financials of the company is good, RoNW is 6.14% and at CMP its looks fully priced. Company is trading at same price of Buyback. So we give AVOID rating to this buyback.