Understanding Shariah Compliance in IPOs and Stocks:
Investing wisely is essential for both financial growth and ethical alignment. For those interested in making investments that comply with Islamic law, understanding the Shariah status of Initial Public Offerings (IPOs) and stocks is crucial. This article aims to provide insights into the Shariah compliance of Aaradhya Disposal Industries Ltd, ensuring that your investment choices are not only profitable but also ethical.
Table of Contents
What is Shariah Compliance?
Shariah compliance refers to the adherence to Islamic law, which governs various aspects of life, including financial transactions. When it comes to investments, certain criteria must be met to ensure that they are permissible under Shariah law. For example, investments should avoid sectors related to alcohol, gambling, pork, and any form of interest (Riba), etc.
Analyzing Aaradhya Disposal Industries Ltd
Company Name: Aaradhya Disposal Industries Ltd
Industry: Paper & Paper Products
Listing At: NSE SME
Overview:
AARADHYA DISPOSAL INDUSTRIES LTD. is a well-regarded company specializing in paper products, with a focus on environmental health. The company’s product line includes paper cup blanks, ripple blanks, poly-coated paper rolls, embossed ripple wall paper fans, and biodegradable coated paper. They maintain a commitment to using high-quality raw materials from suppliers such as ITC, Century, Nippon, and West Coast.
With its manufacturing facility located in Dewas, Madhya Pradesh, India, and an international presence in Dubai, AARADHYA DISPOSAL INDUSTRIES has established itself as a prominent manufacturer, exporter, and supplier in the printing and packaging industry. The company attributes its competitive edge to the superior quality of its raw materials and a dedicated quality assurance team that monitors every stage of production. AARADHYA DISPOSAL INDUSTRIES aims to expand its reach further through global exports.
Shariah Status
The IPO is Non-Shariah Compliant, please see below image.
Additional Considerations:
When opting for Shariah-compliant investments, it is essential to regularly check the status in our App. This ensures that the evolving nature of businesses or other financial data does not compromise the compliance status of your investments.
IPO Timeline (Tentative Schedule)
| IPO Open Date | Fri, Aug 4, 2025 |
| IPO Close Date | Tue, Aug 6, 2025 |
| Tentative Allotment | Wed, Aug 7, 2025 |
| Initiation of Refunds | Thu, Aug 8, 2025 |
| Credit of Shares to Demat | Thu, Aug 8, 2025 |
| Tentative Listing Date | Fri, Aug 11, 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on August 6, 2025 |
Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Individual investors (Retail) (Min) | 2 | 2,400 | ₹2,78,400 |
| Individual investors (Retail) (Max) | 2 | 2,400 | ₹2,78,400 |
| S-HNI (Min) | 3 | 3,600 | ₹4,17,600 |
| S-HNI (Max) | 7 | 8,400 | ₹9,74,400 |
| B-HNI (Min) | 8 | 9,600 | ₹11,13,600 |
Financials
Based on the provided financial summary, AARADHYA DISPOSAL INDUSTRIES LTD. has shown a remarkable performance, particularly in the fiscal year ending March 31, 2025. The company experienced a substantial increase in its key financial metrics, with revenue growing by 53% and profit after tax (PAT) surging by an impressive 158% compared to the previous year. A review of the three-year data ending March 31, 2025, reveals a consistent upward trend in assets, total income, profit after tax, EBITDA, and net worth, indicating strong operational efficiency and profitability. Interestingly, while the company’s total borrowing has fluctuated, its net worth and reserves have seen consistent growth, demonstrating a strengthening financial position. This data underscores the company’s successful strategic initiatives and its ability to generate significant returns for its stakeholders.
KPI
| KPI | Values |
|---|---|
| ROE | 44.53% |
| ROCE | 25.15% |
| Debt/Equity | 1.35 |
| RoNW | 34.87% |
| PAT Margin | 9.04% |
| EBITDA Margin | 15.69% |
| Price to Book Value | 3.99 |
LINKS
Ready to invest in Shariah-compliant opportunities? Explore more at IslamicStock & consider opening a demat account from the below link!
- Open Demat Account:
- Visit our Website: www.IslamicStock.in
- Read our Blog: blog.islamicstock.in
- Download our App:
SEBI Disclaimer
Investing in IPOs involves risks. Please read the offer document carefully before investing. This article is for informational purposes only and does not constitute financial advice. Investors should consult their financial advisors before making any investment decisions.