Is Lavoro Ltd (LVRO) Halal?

NASDAQ Basic Materials Brazil $35M
✗ NOT HALAL
Confidence: 90/100
Lavoro Ltd (LVRO) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 4503.0% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. Lavoro Ltd operates in the Basic Materials sector.

Shariah Screening — 5 Standards

Based on financial data from June 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 4503.0%
/ 30%
1372.8%
/ 30%
4247.3%
/ 30%
4.94%
/ 5%
✗ NOT HALAL
DJIM 4503.0%
/ 33%
1372.8%
/ 33%
4247.3%
/ 33%
4.94%
/ 5%
✗ NOT HALAL
MSCI 36.6%
/ 33%
11.2%
/ 33%
34.5%
/ 33%
4.94%
/ 5%
✗ NOT HALAL
S&P 4503.0%
/ 33%
1372.8%
/ 33%
4247.3%
/ 33%
4.94%
/ 5%
✗ NOT HALAL
FTSE 36.6%
/ 33%
11.2%
/ 33%
34.5%
/ 50%
4.94%
/ 5%
✗ NOT HALAL

Financial Highlights

EPS
$-4.56
EV/EBITDA
-2.0
EV: $2.2B
Revenue
$6.5B
Growth: -24.5%
Beta
0.6
Low volatility
Current Ratio
0.9

Profitability

Gross Margin 14.7%
Operating Margin -43.6%
Net Margin -26.2%
Return on Equity (ROE) -252.9%
Return on Assets (ROA) -7.5%

Cash Flow & Balance Sheet

Operating Cash Flow-$917M
Free Cash Flow-$945M
Total Debt$1.6B
Current Ratio0.9
Total Assets$4.3B

Price & Trading

Last Close$0.30
50-Day MA$0.85
200-Day MA$1.48
Avg Volume2.3M
Beta0.6
52-Week Range
$0.12
$4.68

About Lavoro Ltd (LVRO)

CEO
Mr. Marcelo Pessanha
Employees
3,767
Sector
Basic Materials
Industry
Agricultural Inputs
Country
Brazil
Exchange
NASDAQ
Market Cap
$35M
Currency
USD

Lavoro Limited operates as an agricultural inputs retailer. The company operates through Brazil Ag Retail, Latam Ag Retail, and Crop Care segments. It distributes agricultural inputs, such as crop protection, seeds, fertilizers, foliar fertilizers, biologicals, adjuvants, organominerals, and others for the agricultural industry. In addition, the company produces specialty fertilizers, crop protection products, and agricultural crop inputs. Lavoro Limited operates in Brazil, Colombia, Ecuador, Peru, Chile, Paraguay, and Uruguay. The company sells its products through its physical stores and digital channel. The company was founded in 2017 and is headquartered in São Paulo, Brazil.

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Frequently Asked Questions

Is Lavoro Ltd (LVRO) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Lavoro Ltd is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Lavoro Ltd's debt ratio?

Lavoro Ltd's debt ratio is 4503.0% 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 36.6%.

What are Lavoro Ltd's key financial metrics?

Lavoro Ltd has a market capitalization of $35M, and revenue of $6.5B. The company maintains a gross margin of 14.7% and a net margin of -26.2%. Return on equity stands at -252.9%.

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.