For investors seeking Sharia-compliant opportunities, halal stocks offer a viable and ethical path to halal investment. Halal stocks are those that adhere to Islamic principles, meaning they avoid businesses involved in activities like gambling, alcohol, interest-based finance, and other prohibited industries. Here, we present an overview of halal stocks list of 10 prominent halal stocks in India that align with Sharia principles and offer a promising investment opportunity. But navigating it can be difficult, be it knowing if a stock fits halal criteria or setting the stock screener to find undervalued stocks; where investment advisor services can help you, they can also help you with finding debt-free penny stocks.
List of Halal Stocks
| S.No. | Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | Debt / Eq | 3Yrs Return % | ROCE % |
| 1 | Reliance Industries | 1267.60 | 1715363.12 | 25.26 | 0.44 | 3.90 | 9.61 |
| 2 | TCS | 4145.90 | 1500022.90 | 31.15 | 0.09 | 5.59 | 64.28 |
| 3 | Infosys | 1864.55 | 774190.86 | 28.73 | 0.10 | 1.42 | 39.99 |
| 4 | Hind. Unilever | 2389.20 | 561364.34 | 54.62 | 0.03 | -0.03 | 27.24 |
| 5 | HCL Technologies | 1858.95 | 504456.77 | 29.98 | 0.08 | 17.28 | 29.60 |
| 6 | Larsen & Toubro | 3526.25 | 484857.58 | 36.01 | 1.41 | 21.77 | 13.44 |
| 7 | Sun Pharma.Inds. | 1768.20 | 424250.41 | 37.86 | 0.04 | 30.73 | 17.32 |
| 8 | Maruti Suzuki | 11006.05 | 346033.04 | 24.68 | 0.00 | 9.97 | 21.82 |
| 9 | Adani Enterp. | 2826.80 | 326263.81 | 57.80 | 1.92 | 18.32 | 9.87 |
| 10 | UltraTech Cem. | 10728.50 | 309729.27 | 47.11 | 0.28 | 10.94 | 15.12 |
Reliance Industries Limited
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | Debt / Eq | ROCE % | Debt Rs.Cr. | EBITDA Rs.Cr. | NP Ann Rs.Cr. | Debt to Profit | ROE % | Sales Rs.Cr. |
| Reliance Industr | 1267.60 | 1715363.12 | 25.26 | 0.44 | 9.61 | 357525.00 | 178942.00 | 79020.00 | 4.52 | 9.25 | 924938.00 |
Reliance Industries is one of the largest conglomerates in India, with diversified business interests including energy, petrochemicals, retail, and digital services. With a market capitalization of ₹17,15,363.12 crore, Reliance is a market leader and a consistent performer. It has a low debt-to-equity ratio of 0.41 and a Return on Capital Employed (ROCE) of 9.61%, making it a strong contender for investors seeking halal stocks among the top halal stocks in India.
Tata Consultancy Services (TCS)
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | Debt / Eq | ROCE % | Debt Rs.Cr. | EBITDA Rs.Cr. | NP Ann Rs.Cr. | Debt to Profit | ROE % | Sales Rs.Cr. |
| TCS | 4145.90 | 1500022.90 | 31.15 | 0.09 | 64.28 | 9046.00 | 68700.00 | 46099.00 | 0.20 | 51.51 | 248692.00 |
Tata Consultancy Services (TCS) is a leading IT services provider globally and one of India’s most valuable companies. With a market capitalization of ₹15,00,022.90 crore, TCS has been a consistent performer, offering stable growth and attractive returns. The company’s ROCE stands at a remarkable 64.28%, with a low debt-to-equity ratio of 0.09, making it an attractive option for those interested in halal stocks investments.
Infosys Limited
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | Debt / Eq | ROCE % | Debt Rs.Cr. | EBITDA Rs.Cr. | NP Ann Rs.Cr. | Debt to Profit | ROE % | Sales Rs.Cr. |
| Infosys | 1864.55 | 774190.86 | 28.73 | 0.10 | 39.99 | 8804.00 | 40851.00 | 26248.00 | 0.34 | 31.83 | 157045.00 |
Infosys is another major player in the Indian IT sector, known for its focus on innovation, client-centric approach, and ethical business practices. With a market capitalization of ₹7,74,190.86 crore, Infosys has an ROCE of 39.99% and a low debt-to-equity ratio of 0.10, making it a strong candidate for those seeking halal stocks in the technology sector, and a leader among halal stocks.
Hindustan Unilever Limited (HUL)
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | Debt / Eq | ROCE % | Debt Rs.Cr. | EBITDA Rs.Cr. | NP Ann Rs.Cr. | Debt to Profit | ROE % | Sales Rs.Cr. |
| Hind. Unilever | 2389.20 | 561364.34 | 54.62 | 0.03 | 27.24 | 1651.00 | 15470.00 | 10282.00 | 0.16 | 20.24 | 62410.00 |
Hindustan Unilever is India’s largest FMCG company, offering a wide range of consumer products across categories such as personal care, home care, and food. The company’s ROCE is 27.24%, and it maintains a very low debt-to-equity ratio of 0.03. HUL is a halal stock option due to its business operations, which align with Sharia principles.
HCL Technologies Limited
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | Debt / Eq | ROCE % | Debt Rs.Cr. | EBITDA Rs.Cr. | NP Ann Rs.Cr. | Debt to Profit | ROE % | Sales Rs.Cr. |
| HCL Technologies | 1858.95 | 504456.77 | 29.98 | 0.08 | 29.60 | 5791.00 | 25521.00 | 15710.00 | 0.37 | 23.30 | 113864.00 |
HCL Technologies is another prominent IT services company in India that offers halal investment opportunities. The company has consistently performed well, maintaining a market capitalization of ₹5,04,456.77 crore and an ROCE of 29.60%. With a low debt-to-equity ratio of 0.08, HCL is an attractive halal stock option.
Larsen & Toubro Limited (L&T)
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | Debt / Eq | ROCE % | Debt Rs.Cr. | EBITDA Rs.Cr. | NP Ann Rs.Cr. | Debt to Profit | ROE % | Sales Rs.Cr. |
| Larsen & Toubro | 3526.25 | 484857.58 | 36.01 | 1.41 | 13.44 | 126183.49 | 33457.73 | 15547.10 | 8.12 | 14.68 | 238880.90 |
Larsen & Toubro is a major engineering and construction conglomerate in India, making it a key player among halal stocks. The company is significantly involved in infrastructure, real estate, and power projects. The company has a market capitalization of ₹4,84,857.58 crore and an ROCE of 13.44%. With a higher debt-to-equity ratio of 1.41, L&T is suitable for investors seeking long-term infrastructure and technology development growth while adhering to halal principles.
Sun Pharmaceutical Industries Limited
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | Debt / Eq | ROCE % | Debt Rs.Cr. | EBITDA Rs.Cr. | NP Ann Rs.Cr. | Debt to Profit | ROE % | Sales Rs.Cr. |
| Sun Pharma.Inds | 1768.20 | 424250.41 | 37.86 | 0.04 | 17.32 | 2571.95 | 14387.29 | 9610.03 | 0.27 | 16.69 | 50307.74 |
Source: Screener.in (16-11-2024)
Sun Pharmaceutical is the largest pharmaceutical company in India and a leading choice for halal stocks. It specializes in generic drugs and active pharmaceutical ingredients (APIs). With a market capitalization of ₹4,24,250.41 crore, the company has an ROCE of 17.32% and a very low debt-to-equity ratio of 0.04. Sun Pharma is a strong candidate for halal investors interested in the pharmaceutical sector.
Maruti Suzuki India Limited
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | Debt / Eq | ROCE % | Debt Rs.Cr. | EBITDA Rs.Cr. | NP Ann Rs.Cr. | Debt to Profit | ROE % | Sales Rs.Cr. |
| Maruti Suzuki | 11006.05 | 346033.04 | 24.68 | 0.00 | 21.82 | 158.40 | 22883.80 | 13488.20 | 0.01 | 16.84 | 145212.60 |
Source: Screener.in (16-11-2024)
Maruti Suzuki is the leading automobile manufacturer in India, offering opportunities in halal stocks, known for its affordable and fuel-efficient vehicles. The company has a market capitalization of ₹3,46,033.04 crore and a ROCE of 21.82%. Maruti Suzuki maintains a negligible debt-to-equity ratio of 0.00, which makes it an excellent halal stock option for investors looking at the automobile industry.
Adani Enterprises Limited
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | Debt / Eq | ROCE % | Debt Rs.Cr. | EBITDA Rs.Cr. | NP Ann Rs.Cr. | Debt to Profit | ROE % | Sales Rs.Cr. |
| Adani Enterp. | 2826.80 | 326263.81 | 57.80 | 1.92 | 9.87 | 80427.25 | 12938.27 | 3335.27 | 24.11 | 9.73 | 102310.72 |
Source: Screener.in (16-11-2024)
Adani Enterprises is a diversified conglomerate involved in sectors, positioning it among the prominent halal stocks such as natural resources, power generation, and infrastructure. With a market capitalization of ₹3,26,263.81 crore, the company has a relatively high debt-to-equity ratio of 1.92, indicating significant leverage. The company’s ROCE stands at 9.87%, which may appeal to investors looking for exposure to infrastructure projects while adhering to Sharia principles.
UltraTech Cement Limited
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | Debt / Eq | ROCE % | Debt Rs.Cr. | EBITDA Rs.Cr. | NP Ann Rs.Cr. | Debt to Profit | ROE % | Sales Rs.Cr. |
| UltraTech Cem. | 10728.50 | 309729.27 | 47.11 | 0.28 | 15.12 | 16963.85 | 13508.96 | 7003.96 | 2.42 | 12.19 | 70863.20 |
Source: Screener.in (16-11-2024)
UltraTech Cement is the largest cement manufacturer in India and a strong contender in halal stocks, known for its wide distribution network and premium product offerings. With a market capitalization of ₹3,09,729.27 crore, UltraTech Cement has a ROCE of 15.12% and a manageable debt-to-equity ratio of 0.28. This makes it a viable option for halal investors interested in the construction materials sector.
Factors to Consider When Investing in Halal Stocks
- Sharia Compliance: Ensure that the company’s operations comply with Islamic principles. Avoid companies involved in interest-based finance, alcohol, gambling, or other non-halal activities.
- Debt Levels: Check the company’s debt-to-equity ratio. Halal stocks generally require low or manageable debt levels to avoid interest payments.
- Financial Stability: Evaluate key financial metrics like P/E ratio, Return on Equity (ROE), and ROCE. Companies with strong financial health and profitability are better options for halal investing.
- Market Position: Companies with a dominant market share and a solid reputation are more likely to provide consistent returns.
- Growth Potential: Assess the company’s growth, expansion, and innovation potential. Companies that invest in new technologies and products often provide better returns.
Conclusion
Investing in halal stocks in India offers a promising opportunity for investors who wish to align their investments with their faith while still achieving substantial returns. The stocks mentioned above, including industry leaders like Reliance Industries, TCS, and Infosys, provide an attractive mix of stability, growth, and ethical investing. Investors can make informed decisions when investing in halal stocks by focusing on financial health, compliance, and market potential.
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FAQ
What makes a stock halal?
A stock is considered halal if the company operates in compliance with Islamic principles, avoiding prohibited industries such as alcohol, gambling, and interest-based finance.
Which sectors are ideal for halal investments?
Sectors such as technology, pharmaceuticals, consumer goods, and manufacturing are generally suitable for halal investments, as they do not engage in prohibited activities.
Is investing in halal stocks profitable?
Yes, investing in halal stocks can be profitable if the right companies are chosen. Many halal stocks, such as TCS and Infosys, have shown consistent growth and solid returns over time.
How do I ensure a stock is Sharia-compliant?
To ensure a stock is Sharia-compliant, check the company’s business activities and financial ratios, such as the debt-to-equity ratio, to confirm that they align with Islamic principles.
What are the risks of investing in halal stocks?
Like any investment, halal stocks carry risks, including market volatility, economic changes, and company-specific risks. It is essential to conduct thorough research and consider financial metrics before investing.
I’m Archana R. Chettiar, an experienced content creator with
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