Is SIS Ltd (SIS) Halal and Shariah Compliant?
Current Price
Security & Intelligence Serv.(India) is directly and indirectly engaged in rendering security and related services consisting of manned guarding, training, and indirectly engaged in paramedic and emergency response services; loss prevention, asset protection and mobile patrols; facility management services consisting of cleaning, housekeeping and pest control management services in the areas of facility management; cash logistics services consisting of cash-in-transit, ATM cash replenishment activities and secure transpor
None listed.
- The company has delivered a poor sales growth of 11.8% over past five years.
- Tax rate seems low
Shariah Compliance Analysis of SIS 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 SIS Ltd (SIS) is Halal and Shariah compliant. To accurately determine the Shariah compliance status of SIS 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 SIS
The very first and most critical step in Halal stock screening is ensuring that the primary business activities of SIS 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 SIS 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 SIS 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 SIS Ltd must not exceed the universally accepted threshold (typically 30% or 33%).
- Illiquid to Total Assets: SIS 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 SIS Ltd
If SIS Ltd (SIS) 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 SIS 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 SIS Ltd (SIS), 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.