Is Tata Steel (TATASTEEL) Halal?

NSE Basic Materials India $2.4T
✗ NOT HALAL
Confidence: 90/100
Tata Steel (TATASTEEL) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 38.3% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. Tata Steel operates in the Basic Materials sector.

Shariah Screening — 5 Standards

Based on financial data from March 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 38.3%
/ 30%
4.6%
/ 30%
2.1%
/ 30%
0.37%
/ 5%
✗ NOT HALAL
DJIM 38.3%
/ 33%
4.6%
/ 33%
2.1%
/ 33%
0.37%
/ 5%
✗ NOT HALAL
MSCI 33.9%
/ 33%
4.0%
/ 33%
1.9%
/ 33%
0.37%
/ 5%
✗ NOT HALAL
S&P 38.3%
/ 33%
4.6%
/ 33%
2.1%
/ 33%
0.37%
/ 5%
✗ NOT HALAL
FTSE 33.9%
/ 33%
4.0%
/ 33%
1.9%
/ 50%
0.37%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
26.3
Forward: 11.1
EPS
$7.34
Dividend Yield
186.0%
Payout: 49.0%
P/B Ratio
2.5
EV/EBITDA
11.2
EV: $3.3T
Revenue
$2.2T
Growth: 6.3%
Beta
0.9
Average volatility

Profitability

Gross Margin 54.9%
Operating Margin 9.0%
Net Margin 4.1%

Cash Flow & Balance Sheet

Operating Cash Flow$235.1B
Free Cash Flow$78.4B
Total Debt$948.0B
Debt-to-Equity99.7
Total Assets$2.8T

Price & Trading

Last CloseINR 196.65
50-Day MAINR 197.93
200-Day MAINR 176.10
Avg Volume33.5M
Beta0.9
52-Week Range
INR 125.30
INR 216.45

About Tata Steel (TATASTEEL)

CEO
Mr. Thachat Viswanath Narendran
Employees
115,788
Sector
Basic Materials
Industry
Steel
Country
India
Exchange
NSE
Market Cap
$2.4T
Currency
INR

Tata Steel Limited engages in the manufacture and distribution of steel products in India and internationally. It offers reinforcement bars (rebars) and wire rods, cut-and-bend reinforcement bars, welded wire mesh, prefabricated cages (pre-cages), steel couplers and carpet reinforcement, hot-rolled, cold rolled, coated coil, tubes, rebar, metallic coated, pre-finished steels, alloy steels, and profiles and construction systems. The company also provides solutions in building envelopes, structural, fit-out, foundations, and highway engineering products, as well as operates steel service centers. It serves agricultural, automotive, construction, consumer goods, energy and power, engineering, and material handling industries. Tata Steel Limited has a strategic collaboration with Hindustan Zinc Limited to scale low-carbon zinc solutions. The company was incorporated in 1907 and is based in Mumbai, India.

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Frequently Asked Questions

Is Tata Steel (TATASTEEL) halal to invest in?

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

Tata Steel's debt ratio is 38.3% 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 33.9%.

What are Tata Steel's key financial metrics?

Tata Steel has a market capitalization of $2.4T, trailing P/E ratio of 26.3, and revenue of $2.2T. The company maintains a gross margin of 54.9% and a net margin of 4.1%.

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.