Adani Group is a big name which is famous for its business in India and around the world. This question arises in the mind of many investors whether Adani Group shares are halal or not. Does Adani stock trade according to Islam or not. Are Adani Group shares halal
Analysis of Adani Group stocks
Each listed company of the Adani Group has a different total number of shares, depending on the size, valuation and market capitalisation of the company. The major listed companies of the Adani Group are:
- Adani Enterprises
- Adani Green Energy
- Adani Ports
- Adani Power
- Adani Wilmar
- Adani Total Gas
All these are shares of Adani Group. We will know about the company, in which sector it does business and how much debt it has
Are Adani Enterprises stocks halal?
Adani Enterprises Limited (AEL) is the flagship company of the Adani Group and its business is quite diversified. It works in many sectors. Therefore, it becomes very difficult to find out which sector has what source of income.
| mkt cap | debt to equity |
|---|---|
| 2,80120cr | 1.92 |
Is Adani Green Energy a Halal Stock
Adani Green Energy is a renewable energy company that works on solar and wind energy projects. Its core business is related to clean energy, which can be considered halal.
Adani Green Energy also has interest based debt problem, so Adani Green is not a halal stock.
| mkt cap | debt to equity |
|---|---|
| 1,69,444cr | 6.38 |
Is Adani Ports a Halal Stock
Adani Ports’ core business is port operations and logistics, which can generally be considered halal according to Islamic beliefs.
It is India’s largest port developer and operator company
The company provides logistics services, such as container freight stations and warehousing
Its debt-to-asset ratio is high, so Adani Ports is not a halal stock
| mkt cap | debt to equity |
|---|---|
| 2,48632Cr | 0.88 |
Is Adani Power halal?
Adani Power is primarily involved in electricity generation and operation of power plants. It generates electricity from sources such as thermal power (coal based) and renewable energy.
According to Sharia, the business of electricity generation itself is halal.
The company has a lot of debt, so Adani Power cannot be considered halal
| mkt cap | debt to equity |
|---|---|
| 2,17,049 | 0.67 |
Is Adani Wilmar Halal
Food and edible oil company Adani Wilmar Limited is a listed stock with a main focus on the consumer staples sector.
Adani Wilmar deals in edible oil, pulses, flour, sugar and FMCG products, which are generally halal from the Islamic finance point of view. Adani Wilmar is a halal stock for the company if it has low debt or debt too
| mkt cap | debt to equity |
|---|---|
| 35,124cr | 0.24 |
Is Adani Total Gas a halal stock?
The primary business of Adani Total Gas is the distribution of natural gas, which is generally considered halal, as it is part of the energy and utilities sector. If the debt is seen as equity, it is slightly higher than the Islamic law. So far Adani Total Gas is not a Shariah-compliant stock.
| mkt cap | debt to equity |
|---|---|
| 74,039cr | 0.37 |
Required for Halal Stocks
- The core business of the company must be halal. Companies that involve alcohol, gambling, interest-based financial institutions, pork products, and haram activities are prohibited according to Islamic rules.
- According to Sharia, a company’s debt should be less than 33% of its total assets
- If the company derives a large part of its income from interest or interest-based activities, it will be considered haram.
Conclusion
It is important to take a close look at a company’s financial practices before investing, including when its debt increases or decreases. Muslim investors should ensure that they make investment decisions in accordance with their Shariah principles. It is always better to seek advice from a qualified Shariah advisor.