Is Hindalco (HINDALCO) Halal?
Shariah Screening — 5 Standards
Based on financial data from March 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 29.8% / 30% | 10.4% / 30% | 9.3% / 30% | 0.41% / 5% | ✓ HALAL |
| DJIM | 29.8% / 33% | 10.4% / 33% | 9.3% / 33% | 0.41% / 5% | ✓ HALAL |
| MSCI | 24.0% / 33% | 8.4% / 33% | 7.5% / 33% | 0.41% / 5% | ✓ HALAL |
| S&P | 29.8% / 33% | 10.4% / 33% | 9.3% / 33% | 0.41% / 5% | ✓ HALAL |
| FTSE | 24.0% / 33% | 8.4% / 33% | 7.5% / 50% | 0.41% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 31.8% | |
| Operating Margin | 8.7% | |
| Net Margin | 6.1% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $244.1B |
| Free Cash Flow | $37.6B |
| Total Debt | $639.3B |
| Debt-to-Equity | 57.6 |
| Total Assets | $2.7T |
Price & Trading
| Last Close | INR 868.65 |
| 50-Day MA | INR 931.33 |
| 200-Day MA | INR 812.38 |
| Avg Volume | 6.7M |
| Beta | 0.8 |
|
52-Week Range
INR 546.45
| |
About Hindalco (HINDALCO)
Hindalco Industries Limited, together with its subsidiaries, manufactures and distributes aluminum and copper products in India, the United States, Brazil, South Korea, the United Kingdom, Germany, China, and internationally. It operates through Novelis, Aluminium Upstream, Aluminium Downstream, and Copper segments. The company offers primary aluminum, such as ingots, wirerods, primary foundry alloys, and billets; flat rolled products, including building and pattern sheets, PCB entry and cold-rolled sheets, closure and fin stocks, cable wrap and lamp cap stocks, foil and litho stocks, spiral fin stocks, circles, hot-rolled plates, cold-rolled coils, and flooring sheets/tread plates; extrusions; and foils, as well as aluminium sheet and light gauge products. It also engages in bauxite and coal mining, refineries, and metal and power; and specialty alumina solutions, including refractory, ceramic, polishing, flame retardant, battery, and water treatment solutions. In addition, the company provides copper wire and recycled rods, alloy rods, IGT tubes, and cathodes; precious metals, such as gold and silver bars, selenium, and platinum group metals; and di-ammonium phosphate, as well as internally grooved copper tube and copper scrap recycling operations. Further, it provides investment, cargo, management, aluminum import and export, engineering, cash management, sales, and welfare services. The company exports its products. It offers its products under the PrizTec, EcoEdge G, EcoEdge C, Everlast, Eternia, Freshwrapp, FUSALOX, and Totalis brands. The company serves the building and construction, batteries and renewable energy, commercial transport, consumer durables, circularity and home solutions, defence and aerospace, electrical and power, industrial machinery, packaging, and personal mobility industries. Hindalco Industries Limited was incorporated in 1958 and is headquartered in Mumbai, India.
Purification Calculator
As a halal stock with 0.41% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Hindalco (HINDALCO) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Hindalco 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 Hindalco's debt ratio?
Hindalco's debt ratio is 29.8% 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 24.0%.
Does Hindalco require dividend purification?
Yes, Hindalco has an impermissible income ratio of 0.41%, which means 0.41% 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 Hindalco's key financial metrics?
Hindalco has a market capitalization of $1.9T, trailing P/E ratio of 12.0, and revenue of $2.4T. The company maintains a gross margin of 31.8% and a net margin of 6.1%.
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.