Is Larsen & Toubro Ltd stock halal or haram? If you’re searching for a comprehensive Shariah compliance analysis of Larsen & Toubro Ltd, you’ve come to the right place!
In this article, we provide a detailed breakdown of Larsen & Toubro 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 Larsen & Toubro Ltd Stock Halal and Shariah Compliant in 2025?
Larsen & Toubro Ltd, a company in the Engineering and Construction services, has undergone a Shariah compliance screening based on key financial and business criteria. According to the latest annual report published on 11-06-2024, Larsen & Toubro Ltd stock appears to be Not Halal and Non-Shariah Compliant.
Shariah Compliance Analysis of Larsen & Toubro Ltd
Non-Shariah Compliant / Not Halal
| Criteria | Value | Status |
| Business Activity | Engineering and Construction | ✅ PASS |
| Impermissible Income to Total Revenue | 2.34% | ✅ PASS |
| Interest-Bearing Debt to Total Assets | 34.25% | ❌ FAIL |
| Illiquid Assets to Total Assets Ratio | 15.5% | ❌ FAIL |
| Net Liquid Assets vs Market Capitalization | Compliant as per Shariah principles | ✅ PASS |
| Non-Compliant Investments to Total Assets | Less than 33% (Compliant) | ✅ PASS |
Larsen & Toubro Ltd Price Chart
Business Overview of Larsen & Toubro Ltd
Larsen & Toubro Ltd (L&T) is India’s leading multinational conglomerate specializing in engineering, construction, manufacturing, technology, and financial services. Founded in 1938, L&T plays a crucial role in infrastructure development, executing large-scale projects in real estate, transportation, defense, power, and heavy engineering.
With a strong global presence, cutting-edge technology solutions, and a focus on sustainability, L&T continues to drive India’s economic growth through smart cities, metro rail, and energy projects, reinforcing its reputation as an industry leader.
Conclusion
Based on the screening Process, Larsen & Toubro Ltd Stock appears to be Not Halal and Non-Shariah Compliant (Allah Knows the Best). However, investors should conduct their own due diligence and review the company’s financials periodically 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.