Hindustan Unilever Limited (HUL) is a very large FMCG company that is very popular in India. Its business is to manufacture and sell food, beverages, personal care, home care and beauty products. If you are interested in the stock, it is important to know whether HUL stock is halal or not
HUL’s business is to manufacture and sell consumer goods. The company is known for its high-quality products. Some of its major product categories are
- Home Care
Surf Excel, Rin, and Vim
This category is related to cleanliness and hygiene - Beauty and Personal Care
Glow lovely,Dove, Lakmé, Ponds, and Sunsilk
These are the leading options for hair care and skincare - Foods and Refreshment
Red Label, Lipton tea, Bru coffee, and Horlicks
This category gives a perfect balance of taste and nutrition - Ice Creams and Desserts
Magnum and Kwality Wall’s are also HUL products
HUL Halal Stock: HUL to be considered Sharia compliant stock
Halal stocks are those stocks that are permissible for investment as per Islamic Sharia rules. This means that
• The company’s work should not be interest-based or related to haram activities
• The level of debt should be limited…
• Alcohol, pork and gambling are prohibited. This doesn’t work either
After research, HUL’s work will be considered Sharia compliant. This company deals in consumer goods, which are largely halal. But, you should consult a certified Sharia board or expert for final confirmation
Social Initiatives of HUL
HUL is also very active in social initiatives
It empowers women entrepreneurs in rural areas
This is a great effort to make women self-reliant
Apart from this, it has launched several campaigns to save water
And it also runs campaigns to increase awareness about hygiene and cleanliness
These initiatives show that HUL is not just a business but also a responsible corporate citizen
Financial Performance of HUL
HUL is one of the largest FMCG companies in India and its financial performance has been strong for many years. HUL is considered a very stable and low-risk stock in the stock market, which is a safe investment for investors
| MKT Cap | P/E Ratio | P/B Ratio | Industry P/E | Debt to Equity |
|---|---|---|---|---|
| 5,49,863Cr | 53.55 | 10.83 | 51.89 | 0.03 |
| ROE | EPS | Div Yield | Book Value | Face value |
|---|---|---|---|---|
| 20.22% | 43.70 | 1.79 | 216.11 | 1 |
How right is it to invest in HUL?
If you want to invest in Sharia-compliant stocks, HUL is a good option. Its business model is based on halal activities. However, you should consider your financial goals and risk appetite before investing. It is also important to consult a certified financial advisor
Disclaimer
It is very difficult to know the exact percentage of halal work a stock is involved in. According to me, Hindustan Unilever’s work is halal and the company’s debt is also very low.
Allah knows better. You should do your own research before investing.
Write in the comments how correct you think HUL’s work is.
