Today many people want to know how to make halal investments, many halal investors want to know whether investing in Mahindra Group, which is a leading Indian multinational group, is halal or not, how many shares of Mahindra Group fall in the halal category? We will know in detail about whether Mahindra Group is a halal stock or not. For complete information about what are halal stocks, read my old article.
What is Mahindra Group?
Mahindra Group is a large Indian conglomerate that started in 1945 and is still one of the top companies in the stock market. The group operates in several sectors such as automotive, IT, financial services, real estate, hospitality, logistics and agricultural equipment. Companies such as Mahindra & Mahindra (M&M), Tech Mahindra, Mahindra Financial Services and Mahindra Logistics are part of this group. But for halal investors, it is important to carefully examine each company’s business model and financial practices.
Listed Stocks of Mahindra Group
- Mahindra & Mahindra Ltd. (M&M)
- Tech Mahindra Ltd.
- Mahindra & Mahindra Financial Services Ltd.
- Mahindra Logistics Ltd.
- Mahindra Lifespace Developers Ltd.
- Mahindra Holidays & Resorts India Ltd.
- Mahindra EPC Irrigation Ltd.
- Mahindra CIE Automotive Ltd.
- Swaraj Engines Ltd.
Halal Status of Mahindra Group Shares.
-
Mahindra & Mahindra Ltd. (M&M)
Business: This company makes automobiles (SUVs, commercial vehicles), tractors, and farm equipment. Their business is related to manufacturing and agriculture. Which is considered Halal in Islam but at present the debt on the company is very high (1.66) which should have been less than 0.33
Conclusion: At present M&M stock cannot be considered Halal. Check the current status before investing.
-
Tech Mahindra Ltd.
Business: Tech Mahindra provides IT services and consulting, which has Tech in its name. Business related to IT services often comes under Halal category. And the company’s debt is also very low (0.07), which should be less than 0.33 for a Halal stock.
Conclusion: Tech Mahindra is a Halal stock. Check the current debt status before investing.
-
Mahindra & Mahindra Financial Services Ltd.
Business: It is an NBFC that provides financing and leasing services like auto loans and housing finance etc. The entire business model of such a company is based on interest which is haram in Islam.
Conclusion: Mahindra & Mahindra Financial Services Ltd is not a halal stock.
Financial services companies are often involved in interest-based transactions, which is haram in Sharia. -
Mahindra Logistics Ltd.
Business: This company provides logistics and supply chain solutions, which is a business in Islam. Halal business is not considered halal. If we look at the debt on the company at this time, it is very high. The company is currently trading at a loss.
Debt to equity: 1.98 P/E ratio: -61.02.Conclusion: Mahindra Logistics Ltd is still out of the Halal category.
Check the current status before investing. It is possible that the company may become debt free after a few days. -
Mahindra Lifespace Developers Ltd.
Business: Real estate and infrastructure development, which is a Halal business, but such business involves interest based finance
The company currently has a little high debt as per Shariah investments.Conclusion: Mahindra Lifespace Developers Ltd is not a Halal stock.
Before investing in such a company, consult an Islamic finance advisor. -
Mahindra Holidays & Resorts India Ltd.
Business: Hospitality and vacation ownership, which is generally a Halal category. For Sharya Complete stocks, the debt on the company also has to be checked. The debt on this company is very high.
Conclusion: Mahindra Holidays is not a Halal stock.
If you want to invest then get complete information, such stocks have a lot of risk. -
Mahindra EPC Irrigation Ltd.
Business: Irrigation equipment and agricultural solutions, this sector is considered Halal. And the company has almost no debt at the moment.
Conclusion: Mahindra EPC Irrigation Ltd. is a stock.
Agricultural equipment manufacturing is Sharia compliant, but verify financial practices. -
Mahindra CIE Automotive Ltd.
Business: Automotive components manufacturing, which is a Halal industry. If we look at the debt on the company, it is (0.09%) due to which it fits in Halal stock
Conclusion: CIE Automotive Ltd is a Halal share
Before investing, do not forget to check the current financial details of the company.
-
Swaraj Engines Ltd.
Business: Makes diesel engines and farm equipment components, companies doing such work fall under the Halal category. Currently this company is debt free, debt to equity ratio is 0.00
Conclusion: Swaraj Engines Ltd is a Halal stock.
This is a good company for Halal investors. Before investing, get complete information from your advisor.
How many stocks of Mahindra Group are halal?
According to available data, out of the 9 listed stocks of Mahindra Group, only 2 companies, Mahindra CIE Automotive and Swaraj Engines, can be considered halal. Mahindra Financial Services is clearly non-halal due to its financial practices or business associations. The rest of the companies like M&M, Tech Mahindra, Mahindra Logistics, Mahindra Lifespaces, Mahindra Holidays, have high debt-to-equity ratio, interest income and other financial metrics, which would have to be scrutinized by an Islamic financier.
Disclaimer: This article is for educational purposes. Stock market investments are subject to market risks. Before taking any investment decision, do your own research or consult a financial advisor. Regular Monitoring: The financials and business activities of companies change from time to time, so keep checking them regularly.