Is UltraTech Cement (ULTRACEMCO) Halal?
Shariah Screening — 5 Standards
Based on financial data from March 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 6.8% / 30% | 1.3% / 30% | 1.7% / 30% | 0.39% / 5% | ✓ HALAL |
| DJIM | 6.8% / 33% | 1.3% / 33% | 1.7% / 33% | 0.39% / 5% | ✓ HALAL |
| MSCI | 18.0% / 33% | 3.4% / 33% | 4.4% / 33% | 0.39% / 5% | ✓ HALAL |
| S&P | 6.8% / 33% | 1.3% / 33% | 1.7% / 33% | 0.39% / 5% | ✓ HALAL |
| FTSE | 18.0% / 33% | 3.4% / 33% | 4.4% / 50% | 0.39% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 58.2% | |
| Operating Margin | 12.5% | |
| Net Margin | 8.9% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $106.7B |
| Free Cash Flow | $15.4B |
| Total Debt | $241.0B |
| Debt-to-Equity | 33.2 |
| Total Assets | $1.3T |
Price & Trading
| Last Close | INR 11,204.00 |
| 50-Day MA | INR 12,187.58 |
| 200-Day MA | INR 12,152.21 |
| Avg Volume | 282K |
| Beta | 0.4 |
|
52-Week Range
INR 10,325.00
| |
About UltraTech Cement (ULTRACEMCO)
UltraTech Cement Limited, together with its subsidiaries, engages in the manufacture and sale of clinker, cement, ready mix concrete, and related products in India, the United Arab Emirates, Bahrain, and Sri Lanka. The company offers ordinary Portland, Portland pozzolana, composite, Weather Plus, and Portland slag; white cement, wall care putty, and value-added products; ready-mix concrete; dry mix mortars, such as tile and marble binders, plasters and mortars, industrial and precision grouts, repair and rehabilitation, and flooring screed; and waterproofing products, including liquid and cement waterproofing products. It also provides masonry products; and TMT steel bars, paints, waterproofing solutions and treatments, switchboards and fittings, plywood, shuttering ply, power and hand tools, PVC pipes, sanitary ware, roofing sheets, and water storage tanks, as well as flooring materials, such as marble, granite, and semi-precious stones through its retail stores under UltraTech Home Expert Store brand name. In addition, the company operates mobile concrete labs that offers on-ground technical assessment of construction materials; and provides Vaastu, pest control, and water testing services, as well as home loans. It offers its products under UltraTech Décor, DuraFacad, Pervious, MaxSheen, AquaSeal, ThermoCon+, FreeFlow+, FireSafe, DuraPlus, CorroProtect, Litecon, iFloors, Rapid, and ZIP brands. The company was incorporated in 2000 and is based in Mumbai, India. UltraTech Cement Limited operates as a subsidiary of Grasim Industries Limited.
Purification Calculator
As a halal stock with 0.39% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is UltraTech Cement (ULTRACEMCO) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), UltraTech Cement 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 UltraTech Cement's debt ratio?
UltraTech Cement's debt ratio is 6.8% 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 18.0%.
Does UltraTech Cement require dividend purification?
Yes, UltraTech Cement has an impermissible income ratio of 0.39%, which means 0.39% 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 UltraTech Cement's key financial metrics?
UltraTech Cement has a market capitalization of $3.3T, trailing P/E ratio of 42.4, and revenue of $749.4B. The company maintains a gross margin of 58.2% and a net margin of 8.9%.
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.