Is Hero MotoCorp (HEROMOTOCO) Halal?
Shariah Screening — 5 Standards
Based on financial data from March 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 0.6% / 30% | 6.5% / 30% | 3.1% / 30% | 1.09% / 5% | ✓ HALAL |
| DJIM | 0.6% / 33% | 6.5% / 33% | 3.1% / 33% | 1.09% / 5% | ✓ HALAL |
| MSCI | 2.5% / 33% | 25.3% / 33% | 11.9% / 33% | 1.09% / 5% | ✓ HALAL |
| S&P | 0.6% / 33% | 6.5% / 33% | 3.1% / 33% | 1.09% / 5% | ✓ HALAL |
| FTSE | 2.5% / 33% | 25.3% / 33% | 11.9% / 50% | 1.09% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 33.6% | |
| Operating Margin | 13.0% | |
| Net Margin | 12.3% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $43.0B |
| Free Cash Flow | $34.4B |
| Total Debt | $7.0B |
| Debt-to-Equity | 3.4 |
| Total Assets | $283.9B |
Price & Trading
| Last Close | INR 5,289.50 |
| 50-Day MA | INR 5,512.48 |
| 200-Day MA | INR 5,346.45 |
| Avg Volume | 528K |
| Beta | 0.6 |
|
52-Week Range
INR 3,344.00
| |
About Hero MotoCorp (HEROMOTOCO)
Hero MotoCorp Limited primarily engages in the manufacture and sale of motorised two wheelers in India, Asia, Central and Latin America, Africa, and the Middle East. The company offers motorcycles and scooters, as well as electric scooters. It provides engines, parts, and accessories, as well as non-banking financial and other related services. The company is also involved in merchandise business. The company was formerly known as Hero Honda Motors Ltd. and changed its name to Hero MotoCorp Limited in July 2011. Hero MotoCorp Limited was incorporated in 1984 and is based in New Delhi, India.
Purification Calculator
As a halal stock with 1.09% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Hero MotoCorp (HEROMOTOCO) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Hero MotoCorp is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is Hero MotoCorp's debt ratio?
Hero MotoCorp's debt ratio is 0.6% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 2.5%.
Does Hero MotoCorp require dividend purification?
Yes, Hero MotoCorp has an impermissible income ratio of 1.09%, which means 1.09% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are Hero MotoCorp's key financial metrics?
Hero MotoCorp has a market capitalization of $1.0T, trailing P/E ratio of 18.9, and revenue of $407.1B. The company maintains a gross margin of 33.6% and a net margin of 12.3%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.