Is Apollo Micro Systems Ltd (APOLLO) Halal and Shariah Compliant?
Current Price
Apollo Micro Systems Ltd is a pioneer in design, development, assembly, and testing of electronic and electro-mechanical solutions. Company Top Financial Ratios: - Market Cap: ₹ 14,613 Cr. - Current Price: ₹ 409 - High / Low: ₹ 434 / 162 - Stock P/E: 121 - Book Value: ₹ 37.0 - Dividend Yield: 0.06 % - ROCE: 15.6 % - ROE: 12.5 % - Face Value: ₹ 1.00
From an ethical and Islamic market perspect
- Company is expected to give good quarter
- Stock is trading at 11.0 times its book value
- Company has a low return on equity of 10.6% over last 3 years.
- Promoters have pledged 39.9% of their holding.
Shariah Compliance Analysis of Apollo Micro Systems Ltd
When navigating the Indian stock market, ethical investors constantly seek to align their portfolios with Islamic finance principles. A frequent question we receive is whether Apollo Micro Systems Ltd (APOLLO) is Halal and Shariah compliant. To accurately determine the Shariah compliance status of Apollo Micro Systems Ltd, we must conduct a comprehensive quantitative and qualitative analysis of both its core business operations and its underlying financial health.
Business Sector Screening for APOLLO
The very first and most critical step in Halal stock screening is ensuring that the primary business activities of Apollo Micro Systems Ltd do not violate Islamic law. Companies heavily involved in prohibited (Haraam) sectors like conventional banking, alcohol, gambling, and adult entertainment are strictly excluded. If Apollo Micro Systems Ltd derives its core revenue from permissible (Halal) activities, it successfully advances to the financial ratio analysis phase.
Financial Ratio Analysis
Even if a prominent company like Apollo Micro Systems Ltd operates entirely within a Halal sector, it must still pass strict financial screens to guarantee its corporate practices align with Shariah principles.
- Debt to Total Assets: The interest-bearing debt of Apollo Micro Systems Ltd must not exceed the universally accepted threshold (typically 30% or 33%).
- Illiquid to Total Assets: Apollo Micro Systems Ltd must maintain a sufficient percentage of tangible, illiquid assets in its portfolio.
- Impermissible Income: Any incidental non-compliant revenue (like interest) must strictly remain below 5% of total gross revenue.
Dividend Purification for Apollo Micro Systems Ltd
If Apollo Micro Systems Ltd (APOLLO) passes both the sector screens and strict financial tests, it is classified as a Halal stock. However, any incidental impermissible income earned by the company must be cleansed. Investors holding APOLLO are required to calculate their dividend purification ratio and donate that exact portion to charity, with no expectation of spiritual reward (Sawab), purifying their Halal earnings.
By utilizing our advanced Halal stock screener platform, you can effortlessly track the live Shariah compliance status of Apollo Micro Systems Ltd (APOLLO), view historical compliance trends, and access precise dividend purification calculations. Make informed, ethical investment decisions with confidence.
⚠️ Disclaimer & Research Notice: This analysis is for informational and reference purposes only. It is not financial advice, and we are not responsible for any financial losses or damages incurred. Always do your own research (DYOR) and consult with a qualified Shariah advisor or financial planner before making any investment decisions.