Is Bajaj Auto Ltd Share Halal or Haram? If you’re searching for a comprehensive Shariah compliance analysis of Bajaj Auto Ltd, you’ve come to the right place!
In this article, we provide a detailed analysis of Bajaj Auto 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 Bajaj Auto Ltd Share Halal or Not?
Bajaj Auto is a two-wheeler and three-wheeler manufacturing company, it has undergone a Shariah compliance screening based on business activity and its latest annual report. According to the latest annual report published on 21-06-2024, Bajaj Auto Ltd share appears to be Not Halal and Non-Shariah Compliant.
For transparency and verification, you can review the latest annual report of Bajaj Auto Ltd from here: Bajaj Auto Ltd Annual Report
Shariah Compliance Analysis of Bajaj Auto Ltd
| Criteria | Value | Status |
| Business Activity | Auto Mobile | ✅ PASS |
| Impermissible Income to Total Revenue | 5.59% | ❌ FAIL |
| Interest-Bearing Debt to Total Assets | 4.54% | ✅ PASS |
| Illiquid Assets to Total Assets Ratio | 12.56% | ❌ FAIL |
| 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 Bajaj Auto Ltd
Bajaj Auto Ltd is a leading Indian multinational manufacturer of two-wheelers and three-wheelers, headquartered in Pune, India. Established in 1945, it is part of the Bajaj Group and is known for its innovative, fuel-efficient, and high-performance motorcycles, scooters, and auto-rickshaws. The company exports its products to over 70 countries, making it one of the largest motorcycle manufacturers globally.
Bajaj Auto is renowned for brands like Pulsar, Dominar, Avenger, Platina, and CT, catering to diverse customer segments. It also has a strong presence in the electric vehicle market with its Chetak EV. With a focus on technology, sustainability, and global expansion, Bajaj Auto continues to drive growth in the automobile industry.
Conclusion
Based on the Shariah screening process, Bajaj Auto Limited Share is considered as Not Halal and Non-Shariah Compliant due to its high impermissible income-to-total revenue ratio (5.59%), which exceeds the permissible 5% threshold, and its illiquid assets-to-total assets ratio (12.56%), which is below the required 20% threshold.
As a result, it does not meet key Shariah Screening guidelines. However, investors are advised to conduct their own due diligence and periodically review the company’s financial reports for any changes in compliance.
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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.