Is Asian Paints Ltd Share Halal or Haram? If you’re looking for a detailed Shariah compliance analysis, you’re in the right place!
In this article, we provide a detailed breakdown of Asian Paints Ltd’s business operations, financials, and compliance with Shariah screening guidelines. Whether you’re an ethical investor or exploring halal investment opportunities, this analysis will help you make an informed decision.
Is Asian Paints Ltd Share Halal and Shariah Compliant?
Asian Paints Ltd is the largest home decor company in India, it has undergone a Shariah compliance screening based on key business activity and financial information available publicly.
Based on the current annual report published on 27-07-2024, Asian Paints Ltd Share is classified as Halal and Shariah Compliant, as it meets the required Shariah screening guidelines. The company’s core business activities align with Islamic principles, and it’s all financial ratios, including interest-bearing debt and impermissible income, remain within the permissible thresholds.
For transparency and verification, you can review the latest annual report of Asian Paints Ltd from here: Asian Paints Ltd Annual Report
Shariah Compliance Analysis of Asian Paints Ltd Stock
| Criteria | Value | Status |
| Business Activity | Home Decor | ✅ PASS |
| Impermissible Income to Total Revenue | 1.91% | ✅ PASS |
| Interest-Bearing Debt to Total Assets | 8.27% | ✅ PASS |
| Illiquid Assets to Total Assets Ratio | 52.69% | ✅ PASS |
| Net Liquid Assets vs Market Capitalization | Compliant as per Shariah principles | ✅ PASS |
| Non-Compliant Investments to Total Assets | Less than 33% (Compliant) | ✅ PASS |
Business Overview of Asian Paints Ltd
Asian Paints Ltd. is India’s leading paint manufacturer and one of the largest in Asia, specializing in decorative and industrial coatings. Founded in 1942, the company operates in over 15 countries, serving diverse markets with innovative and high-quality products. It offers a wide range of paints, coatings, wallpapers, adhesives, and waterproofing solutions.
Asian Paints has built a strong brand presence through extensive distribution networks, digital innovations, and customer-centric strategies. The company invests heavily in R&D to develop eco-friendly and technologically advanced products. Additionally, it has expanded into home décor and sanitaryware. With a focus on sustainability and market leadership, Asian Paints continues to drive growth in India’s booming construction and renovation sectors.
Conclusion
Based on the Shariah screening process and annual report published on 31-05-2024, Asian Paints Ltd Share is classified as Halal and Shariah Compliant, meeting all major Islamic investment criteria. The company’s core business activities and financial ratios align with Shariah principles, making it a permissible investment option for Muslim investors. (Allah Knows the Best)
However, investors are advised to conduct their own due diligence and periodically review the company’s financial reports for any changes in compliance.
Disclaimer: The information on Halalfinance.co.in is for educational and informational purposes only and not financial advice. We are not liable for any investment decisions you make; always consult a financial advisor before investing.
Hasan is the founder of HalalFinance.co.in, created after personally struggling to find reliable answers about halal investing in stocks. With a finance background and a passion for helping the Muslim community, He now shares well-researched, transparent, and authentic content to empower Muslims on their path to halal wealth-building.