Is Nestle India (NESTLEIND) Halal?

NSE Consumer Defensive India $2.3T
✓ HALAL
Confidence: 95/100
Nestle India (NESTLEIND) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 0.5% against the AAOIFI threshold of 30%, Nestle India comfortably passes the key financial ratio tests. The company operates in the Consumer Defensive sector (Packaged Foods), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from March 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 0.5%
/ 30%
0.1%
/ 30%
0.2%
/ 30%
0.28%
/ 5%
✓ HALAL
DJIM 0.5%
/ 33%
0.1%
/ 33%
0.2%
/ 33%
0.28%
/ 5%
✓ HALAL
MSCI 9.6%
/ 33%
1.7%
/ 33%
3.0%
/ 33%
0.28%
/ 5%
✓ HALAL
S&P 0.5%
/ 33%
0.1%
/ 33%
0.2%
/ 33%
0.28%
/ 5%
✓ HALAL
FTSE 9.6%
/ 33%
1.7%
/ 33%
3.0%
/ 50%
0.28%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
70.4
Forward: 60.3
EPS
$16.94
Dividend Yield
160.0%
Payout: 71.7%
P/B Ratio
51.9
EV/EBITDA
48.5
EV: $2.3T
Revenue
$200.8B
Growth: 18.6%
Beta
0.3
Low volatility

Profitability

Gross Margin 54.6%
Operating Margin 18.1%
Net Margin 14.9%

Cash Flow & Balance Sheet

Operating Cash Flow$29.4B
Free Cash Flow$9.3B
Total Debt$11.7B
Debt-to-Equity10.8
Total Assets$121.9B

Price & Trading

Last CloseINR 1,204.10
50-Day MAINR 1,268.19
200-Day MAINR 1,231.94
Avg Volume1.1M
Beta0.3
52-Week Range
INR 1,074.00
INR 1,340.40

About Nestle India (NESTLEIND)

CEO
Mr. Satish Dhawan Srinivasan
Employees
8,419
Sector
Consumer Defensive
Industry
Packaged Foods
Country
India
Exchange
NSE
Market Cap
$2.3T
Currency
INR

Nestlé India Limited engages in the manufacture and sale of food products in India and internationally. The company provides milk products and nutrition, including dairy whitener, condensed milk, UHT milk, yogurt, maternal and infant formula, baby foods, health care nutrition; prepared dishes and cooking aids, such as noodles, sauces, seasonings, pasta, cereals, and pet foods; powdered and liquid beverages comprising instant coffee and tea, as well as ready to drink beverages; and confectionery products consisting of bar countlines, tablets, and sugar confectionery products. The company was incorporated in 1959 and is headquartered in Gurugram, India.

Purification Calculator

As a halal stock with 0.28% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is Nestle India (NESTLEIND) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Nestle India 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 Nestle India's debt ratio?

Nestle India's debt ratio is 0.5% 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 9.6%.

Does Nestle India require dividend purification?

Yes, Nestle India has an impermissible income ratio of 0.28%, which means 0.28% 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 Nestle India's key financial metrics?

Nestle India has a market capitalization of $2.3T, trailing P/E ratio of 70.4, and revenue of $200.8B. The company maintains a gross margin of 54.6% and a net margin of 14.9%.

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.