2020 • Investo Halal

The List of Shariah Compliance Stocks.

As Dated- 01-10-2020- Updated- 25/02/2024

Company Name	Sectors	Shariah Compliant

Adani Gas Ltd.	Oil & Gas	Compliant
Ajanta Pharma Ltd.	Health care	Compliant
Apollo Hospitals Enterprise Ltd.	Health care	Compliant
Sona BLW Precision Forging	Automobile	Compliant
Sirca Paints Ltd	Consumer	Compliant
Atul Ltd.	Capital Goods	Compliant
Avanti Feeds Ltd.	Consumer	Compliant
Bharat Petroleum Corporation Ltd.	Oil & Gas	None Compliant
Biocon Ltd.	Health care	None Compliant
Cipla Ltd.	Health care	Compliant
Coal India Ltd.	Metal & Minings	Compliant
Deepak Nitrite Ltd	Capital Goods	Compliant
Dr. Lal Pathlabs Ltd.	Health care	Compliant
T V S Motor	Automobile	None Compliant
GAIL (India) Ltd.	Oil & Gas	Compliant
Havells India Ltd	Capital Goods	Compliant
Hero MotoCorp Ltd.	Automobile	Compliant
Hindustan Unilever Ltd.	Consumer	Compliant
Hindustan Zinc Ltd.	Metal & Minings	Compliant
Indiamart Intermesh Ltd	Consumer	Compliant
Indian Energy Exchange Ltd.	Power & Utilities	Compliant
Infosys Ltd.	IT	Compliant
ITC	Consumer	None Compliant
JK Cement Ltd	Real estate	Compliant
Jyothy Labs Ltd.	Consumer	Compliant
KRBL Ltd	Consumer	Compliant
Larsen & Toubro Ltd.	Capital Goods	Compliant
Maruti Suzuki India Ltd.	Automobile	Compliant
Mindtree Ltd.	IT	Compliant
Motherson Sumi Wiring India Ltd.	Automobile	Compliant
Natco Pharma Ltd.	Health care	Compliant
Nestle India Ltd.	Consumer	Compliant
NMDC Ltd.	Metal & Minings	Compliant
NTPC	Power & Utilities	Not
Oil & Natural Gas Corporation Ltd.	Oil & Gas	None Compliant
Petronet LNG Ltd.	Oil & Gas	Compliant
Pidilite Industries Ltd.	Capital Goods	Compliant
Power Grid	Power & Utilities	None Compliant
Relaxo Footwears Ltd.	Consumer	Compliant
Shree Cement Ltd.	Real estate	Compliant
Sun Pharmaceutical Industries Ltd.	Health care	Compliant
Suven Pharmaceuticals Ltd.	Health care	Compliant
Tata Consultancy Services Ltd.	IT	Compliant
Tata steel	Metal & Minings	None Compliant
Titan Company Ltd.	Consumer	Compliant
Ultratech Cement Ltd.	Real estate	Compliant
Tanla Platform	IT	Compliant
Electronics Mart of India	Consumer	Compliant
Whirlpool Of India Ltd.	Capital Goods	Compliant
HCL Ltd.	IT	Compliant
	Source: Annual Report of Company & BSE india

Disclaimer: We are providing the list of Shariah compliance stocks for your reference. Before investing in these stocks you have to do your research and analysis.

Wish you all the best for your investment journey.

Jazakallah Khair

Investo Halal Team

Know the company background research of different companies to invest.

Click on images to get started.

Just as investors invest in any other type of investments, such as fixed deposits, recurring deposits (RD), Post office deposits and hope to make a profit on it after a certain time.

Also, Mutual Fund Investment is also an excellent medium of investment where investors can earn better returns by investing.

“Mutual Fund is a less risky option with more profit”

What is Mutual Funds?

Mutual fund is made with two words – Mutual and fund

Mutual means – mutual, mixed, mutual bonding,

fund means – money (money collected together).

In this way Mutual Fund means – a lot of people were gathered together to invest money.

Mutual Funds managed by a Fund Manager who has experience in financial markets.

In this way, the money deposited from different investors is invested in stock market and government or corporate bonds, etc. according to the objective and condition already stated in that mutual fund.

In other words, “Mutual fund is an INVESTMENT system in which a huge FUND is prepared by mixing together the money of many people and Managed by Fund Manager.

How Mutual Funds works –

Mutual Fund is a Unit Investment System

Mutual fund is a system of investment in which money is deposited, deposited from different investors, and units are given to the investors in exchange for the money deposited,

Mutual Fund Unit & Mutual Fund Unit Holder:

Mutual fund investor is called a unit holder.

A unit given to a mutual fund investor has a price, also known as a mutual fund unit price,

And this unit price changes daily, which tells the profit or loss to the investor in the mutual fund,

NFO- New Fund Offer

Any mutual fund scheme, when the offer that is brought to the public to invest in the scheme for the first time, is called New Fund Offer.

In NFO, investors are offered Unit of Mutual Fund for a fixed Price.

For example, if TATA brings a mutual fund scheme, then KIM (Key Information), SID (Scheme Offer Document) and leaflets can be seen on its website, Where all information related to the offer is available,

NFO also has a minimum investment Amount, like 5000, or 10000 rupees,

And the NFO opens for a few days, and then becomes CLOSE,

Once the NFO is CLOSE, suppose

The company collected Rs 10 crore from NFO, and had a unit PRICE of Rs 10,

So in this way there are total units, 1 crore,

And if I put 50000 rupees in NFO, then I will get 5000 units,

Let’s assume profits are 15 % and consider one year.

Now total profit for one year will be 1.5 crore. The profits divided by no. of shares.

After calculation we got 1.5 RS Profit for each share.

Now you have 5000 shares ,then total profits = 1.5 x 5000= 7500 RS.

You have to remember the below point for investing in Mutual Funds.

First you have to check shariah compliance Mutual Funds.
In India there are only few funds which are shariah compliant and they will show shariah certificates.
Needs patience to hold for a long time ,Minimum 10 years for good results.
The Best way to invest in Mutual Funds through SIP (Systematic investment plan).
Invest in Mutual Funds through Direct Plan, not Regular Plan.
In Mutual funds you can create more money due to Power of Compounding. Compounding works only for long terms.
Mutual Funds Needs regular investments.
You can start with a minimum 5000 RS for the first time and after this multiple of 100 will be okay.
You have to diversify your monthly investment in at least 3 funds.
You can invest in Lump Sum amounts also.

I hope you will learn and understand about the Mutual Funds. This is based on my research for educational purposes.

Wishing you best for your investment Journey. Jaza kallah Khair.

Look to the Equity in Balance sheets :

	Dec-07	Dec-08	Dec-09	Dec-10	Dec-11	Dec-12	Dec-13	Mar-15	Mar-16	Mar-17	Mar-18	Mar-19	Sep-19
Share Capital +	64	64	64	64	64	64	64	64	64	64	64	64	64

Equity not change, not diluted, no bonus.
Good sign for growth.

2-Look to the Assets: Assets are growing 107 to 1388,

Fixed Assets +

107

121

134

157

221

243

248

309

304

268

296

317

1388

Asset Increase 10 times more, then company will be highly profitable.
In 2019, it increases 3 times – Needs to Check?
Loan increases 0-217 in 2019, that’s why this year assets increases.

3-Check Profits:

Net Profit

259

172

191

231

217

159

221

329

379

Profit increases more than 9 times.

4-Check the dividend: They are giving dividend 15-32 % .

Dividend Payout %

32%

27%

31%

29%

15%

22%

18%

21%

28%

23%

24%

Remaining amount will go for reserve.

5-Check the reserve:

Reserves

195

233

272

329

508

635

776

957

1,157

1,260

1,410

1,678

1,659

Now reserve increase 8 times in 11 years.
This money used for Growth of the company.

6-Check the Loans:

Borrowings

217

Zero loans for 6 years.
Loan taken only 5 times in 11 years.

7-Check the Cash:

Cash Equivalents

34.83

37.43

57.34

138.89

123.03

187.69

255.75

210.06

342.47

522.04

591.19

840.32

800.02

Sufficient cash is available ,4 times of debt.

8-Checked the Growth:

Sales +

867

987

1,092

1,275

1,549

1,842

2,065

2,694

2,423

2,474

2,634

2,931

3,116

Sales growth is also 8 times and linear form.
Compounded Sales Growth- 6.5- 11.5% , Trends is growing.
Compounded Profit Growth- 10.5 – 25.0 %, Trends is growing.

9-Check the OPM %: This is growing up.

OPM %

11%

13%

15%

16%

13%

11%

12%

14%

17%

25%

Conclusions:

Balance sheets is stable . equity share not diluted and split.
Financial stable and used own fund to grow.
Assets increasing in every years 10 times in 12 years.
Net profit is increase 9 times and growing.
Normal dividend given and rest use for making asset.
Reserve increases 9 times.
Good cash and small amount of loan. Cash is 4 times of loan.
6 times zero debts.
Sales growth is 8 times and growing further.
Operating Margin increase in upwards.

Results- Overall Company is financial sound.

This research is based on my experience before investing you have to do your own research and used it as guide.

Wish you best for your investment journey

Jazakalllah Khair

Business Model of Vakrangee:

Digital common Service providing to the rural and semi urban area .
Incorporated in 1990, During 1990-2005 work on gov.project such as election commission and MCA.
2005-007- Work on many state gov.project such as Haryana, UP and Rajasthan.
2010-2011- Work on Passport seva kendra and Aadhar Enrollment.
Also lunch Common service centre ,Phase-1

-Now these are all services provided by the company at one shop , called NEXZEN VAKRANGEE KENDRA.

– No Any company providing all service at one place.

Scope:

Due to digitalization in India , we have more scope in future to grow in India basically in rural areas.
In India, over 1.2 billion of the total population lives in the rural regions.
Through our Next Gen Kendras, we aim to connect to the rural population of India and bring them under the scope of financial, social and digital inclusion. Today, our Next Gen Vakrangee Kendras are the centre point of consumption in a rural economy.
Now total no of full operational Kendra 10000.
As per concall 13000 is under process and they will be operational within 3 months.
They have a target to open 25000 kendra upto 2020. Next 2-3 year it will be 45000 kendra.
They are giving one Kendra in each panchayat in rural areas.

Franchise Model:

3- Types of Model, Gold, silver and bronze as per your space and financial condition.
They are giving a full Kendra design manual to every franchise and it will be the same for all India.
Exclusive store model with same service level and same Customer experience
Standardized layout & design by L&H (Lewis & Hickey).
Uniform and Consistent Branding for Higher brand recall and visibility.
Centralized CCTV system
Better Security at the store
Full compliance with RBI guidelines to maintain more than 90 days video recording back up.
Store inspected by a third party and he makes sure everything matches with design layout. Then they will give approval.
If anything changes again needs to be corrected by franchise, after this they will approve. Such as color of paint, light switches ,no matter small or big ,they want as per layout which mentions everything.
Each sore takes 6-9 months for operation.
After operation again the 3-rd party will visit each and every store to check how many services are activated and everything is going smoothly or not.
They are not charging Franchise costs ,only for equipment charges you have to bear.
They are giving ATM in every store by the company itself to generate more revenue.

Support:

They have block level executive, and district level executive where stores are in operation.
They have a separate relationship manager for each service for smooth support to the franchise store.
Also they have state level support centers for many services.

Employees :

Vakrangee has around 2000 employees.
I recently talked to employees about getting a salary on time now and before also.
I ask about expansion – we are working for expansion in each district. He said in my district before there were 3 stores but now 18 are working and some are in process.

Management:

Risk:

In 2018 , There was a charge of manipulation on no. of store and profit margin.Also some fund used for Gold trading. As per TV Report.
Auditor resignation gives more negative to the company.
After this SEBI and MCA ,Form enquiry and they found nothing wrong.
In between share prices fall 500 To 50 RS/share. Means 90% down and still under poor performance.

Positive Points:

The company hired New CEO, Mr. Khanna in JAN-2019.P He has 27year of experience in Blue Dart.
Management decided to use this period for massive expansion, because there was no cash issues. Debt free company.
In 2018-2019- 3500 Stores converted in Nexzen Kendra.
They plan to change 25000 Kendra in 2020.
Presently 10000 stores running and 13000 under process.

CEO-

Mr Anil Khanna has joined Vakrangee as Managing Director & Group CEO w.e.f. 28th January 2019. Prior to Vakrangee he has been in the position of Managing Director of Blue Dart Express Limited since 21st February 2007.
He has 40 years of experience in various industries and has been with Blue Dart since 1992.
Under his leadership and guidance, Blue Dart was able to broaden its strategic focus from being an air express company to a full-fledged logistics organisation, offering a wide range of products and services, as well as Industry specific solutions in air and ground express segments.
He was also responsible for developing business potential, driving strong revenue growths and enhancing service quality.
He has proven his capabilities in leading his team to achieve exceptional business results.
He is a graduate from St Stephen’s College, Delhi and holds an MBA degree in Marketing and Finance from UBS, Chandigarh.

To Gain Trust:

Management hires third party inspection of their store and they are verifying each and every store physically.
Quality Analysis of Next Gen Vakrangee Kendra by Grant Thornton (GT).
They are giving a report on the no of stores operating as per new nexzen Kendra and services activation.
They also install cameras to see the visibility of store function and 90 days recording need to submit to the third party.
Also they have screens for customers to see what operators are doing for his service. Any customer can see what is going one for any services.
Now they launch Mobile ATM service in Mumbai during Corona Pandemic.

Income from Store:

Nextzen Outlet Commission Sharing ratio: Ranging from 65:35 to 80:20 based on Service Type

Income from ATM:

We can use any cards and credit cards.
For each financial transaction company will charge to the concern bank 15 RS.
10 RS for Franchise and 5 RS taken by company.
For Non-Transaction, Balance, pin changing, Mobile no. Updates them, Charge 5 RS.
3 Rs for Franchise and 2 for company.
This WLA ATM is selfloaded. Means you can load the cash himself. No need to depend on bank service.
Whatever you get cash money from other services, franchisees will load to the ATM.
Widraw money from the ATM ,You will get in your account within 24 hrs.
You can rotate this money for an ATM and no of Transaction can be increased.
CSR activity and they spend 2 % of average profit for the last consecutive 3 years.

Benefits to Company:

Company Providing the insurance for ATM Maintenance, Cash carrying from the bank.
Insurance charge is 2500 RS monthly from Every Store apart from transaction charges.

Income From E-Commerce:

This is the most profit generation for the company.
When any sales announcement from AMAZON, vakrangee marketing people act and promote to the store with good reward.
Many stores generate income up to 1 lakh through E-Commerce.

Banking Services: Franchisees are getting commission up to 60000 thousand monthly.

Account opening charges 16-18 Rs Per account for all banks.

Domestic Transfer: Charging 1% of transaction value and company is taking 30% of service.
IRCTC-
Insurance.
TeleMedicine: V-Health
BPPS- Services-
Mobile & DTH Recharge.
Courier Services-
Mutual Funds.

Financial Aspect:

Look to the Equity in Balance sheets :

	Mar-08	Mar-09	Mar-10	Mar-11	Mar-12	Mar-13	Mar-14	Mar-15	Mar-16	Mar-17	Mar-18	Mar-19	Sep-19
Share Capital +	21	21	21	22	24	25	50	50	50	53	53	106	106

Issues bonus 1:1 in 21/12/2017
Stocks split 10 to 1 – 2012
Bonus – 1:1 , 2012
Taken Pledge in 2011.

2-Look to the Assets:

Other Assets +

223

414

563

943

1,238

1,753

1,959

2,246

2,871

2,558

2,629

Assets increases in linear

3-Check Profits:

Net Profit

104

175

322

395

531

680

Profit increases upto 2018, after 2019 and 2020 drastically decreases.

4-Check the dividend: They are giving a dividend 15-32 % .

Dividend Payout %

49%

14%

10%

17%

20%

105%

–

Less dividend giving.
Remaining amount will go for reserve.

5-Check the reserve:

Reserves

250

247

274

323

392

464

627

907

1,530

2,001

2,487

2,496

Now reserves have increased 10 times in 12 years.
This money is used for Growth of the company.

6-Check the Loans:

Borrowings

163

459

542

492

416

320

144

Zero loans in the last 3 years.

7-Check the Cash:

Cash Equivalents

4.42

4.48

4.89

17.59

28.41

31.89

29.34

38.2

167.2

603.2

1474.45

1144.17

1146.39

Sufficient cash to operate the business.
Debt free
Cash has increased more in the last 4 years.

8-Checked the Sales Growth:

	Mar-08	Mar-09	Mar-10	Mar-11	Mar-12	Mar-13	Mar-14	Mar-15	Mar-16	Mar-17	Mar-18	Mar-19	TTM
Sales +	224	294	428	890	1,353	1,547	1,952	2,780	3,191	4,000	6,502	1,508	579

Good sales growth upto 30 times
Last one year it was reduced by 61%. Due to Expansion of business.

9-Check the OPM %:

OPM %

45%

38%

19%

16%

18%

25%

27%

26%

24%

15%

-1%

Margins are good up to 2018.
In 2019 almost zero.

The above Research for the purpose of support only . On the basis of this you can do your research before Investing. I am doing research only for Halal Company.

All the best for your Halal Investing Journey.

Team

Investo Halal

D-Mart is a one-stop supermarket chain that aims to offer customers a wide range of basic home and personal products under one roof.

Each DMart store stocks home utility products – including food, toiletries, beauty products, garments, kitchenware, bed and bath linen, home appliances and more – available at competitive prices that our customers appreciate.

Core objective is to offer customers good products at great value.

DMart was started by Mr. Radhakishan Damani and his family to address the growing needs of the Indian family.

The launch of its first store in Powai in 2002,

DMart today has a well-established presence in 206 locations across Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh, Karnataka, Telangana, Chhattisgarh, NCR, Tamil Nadu, Punjab and Rajasthan.

With our mission to be the lowest priced retailer in the regions we operate, our business continues to grow with new locations planned in more cities.

Business Structure:

D-Mart Hyper market One stop solutions & deals with 3-categories

Food Items – 51.25% Revenue share.
Groceries, Diary, Fruit & Vegetable, Frozen food, Snacks, Beverages and Confectionery..Etc.
Non Food Items – 20.46% Revenue share.
Home Care, Personal Care, Toiletries…etc.
General Merchandise & Apparel – 28.29 % Revenue Share.
Home Appliances, Plastic Goods, Crockery, Bed and bath products, Apparel, Foot Wear, Toys & Games….Etc.

Business Model: B2C

Buy Product from Manufacturers and sell to the End User.

That’s why operating profit Margin will be more.t

Benefits of Organized Retails Store:

Visibility of Customer will be more, it increases the purchasing power of the customer.
Product range is more in one place.
Supplier gives more discount on bulk purchasing. Due to this selling price will be low.

Business Growth Parameters:

Form of Business Type: Structural

	Mar-12	Mar-13	Mar-14	Mar-15	Mar-16	Mar-17	Mar-18	Mar-19
Sales +	2,209	3,341	4,686	6,439	8,584	11,898	15,033	20,005
Expenses +	2,071	3,126	4,345	5,981	7,920	10,929	13,680	18,371
Operating Profit	138	215	342	458	664	968	1,353	1,633
OPM %	6%	6%	7%	7%	8%	8%	9%	8%

2. Stage of Business: Growing

3. Evolution of Business: Geographical Expansion.

•Maharashtra (70)

• Gujarat (34)

• Telangana (21)

• Karnataka (16)

• Andhra Pradesh (11)

• Madhya Pradesh (6)

• Rajasthan (5)

• Punjab (3)

• Tamil Nadu (3)

• Chhattisgarh (3)

• NCR (1)

• Daman (1)

Now huge opportunity in North India, Central and east India.

2002 – 1 Store in Mumbai

2009-2010 – 25 store

2011-2012 – 50 Store

2015-2016 – 100 store

2019-2020 – 196 store

Industry Overview?

India is a consumption-led economy with private consumption constituting ~60% to the GDP.
Organized retail is expected to grow at ~1.6x the overall retail market.
South and west account for ~57% of the total retail consumption.
E-retail to clock 28-33% growth in medium term.
Organized food and grocery retail, Past Year 2016-2019, Growth was 26%.
Organized food and grocery retail is expected to grow at a highest CAGR of ~28-30% as compared to other segments yy 2019-2022.
Organized food and grocery retail penetration is huge, because only 4 % growth shows in this sector.

Risk Factor:

Discount price, how long they will survive due to more competition in the retails sector.
Consequently 2 years getting lost in E-Commerce. What will be the future in E-Commerce?

The Key Product Categories Can Be Classified Into:

Foods	Non-Foods	General Merchandise & Apparel
Dairy, staples, groceries, snacks, frozen products, processed foods, beverages & confectionery and fruits & vegetables	Home care products, personal care products, toiletries and other over-the-counter products	Bed & bath, toys & games, crockery, plastic goods, garments, footwear, utensils and home appliances
51.25% Revenue Contribution FY 2018-19	20.46% Revenue Contribution FY 2018-19	28.29% Revenue Contribution FY 2018-19
51.55% Revenue Contribution FY 2017-18	20.03% Revenue Contribution FY 2017-18	28.42% Revenue Contribution FY 2017-18
53.32% Revenue Contribution 2016-17	19.85% Revenue Contribution 2016-17	26.83% Revenue Contribution 2016-17

Summaries of Qualitative Analysis:

Company:

Deals in the grocery, FMCG and Non-food retails sectors. Now a days organized retails is booming. The main point of attraction for customers are very cheap price as compared to other retailers.
Everyday Low Cost, Everyday Low Price’ model to attract more customers. Also best quality maintained.

Business Model: – B 2 C

Form of Business – Structure.
Stage of Business – Growth
Evolution of Business – Geographic Expansion

The Company has 3- segment:

Food items- Revenue sharing- 51.25%
Non-Foods – Revenue —- – 20.46%
General & Apparel – Revenue- – 28.29%

In India still have more penetration space for groceries sectors.
They work on revers logistic so that reduce the cost of transport.
The new stores in the same markets reach absolute high revenue immediately, within three months, six months or one year.

Management :

Highly skilled and more competent with these sectors.
Founder and chairman, both have Tycon of the share market. They have good capabilities to make the profit. Also they have a good track record to generate profits with honesty.
CEO- he is also a very competent person and serving this company for the last 16 years. Before, I was a market researcher in HUL.
They have SOPS for daily work, their employees and vendors.
I have seen CSR activity and I also checked they are spending 2% profits of average 3 years net profit. As per mention in the annual report.
Promoters have 75 % Shareholding.

Expansion :

Working on many projects such as new store openings, Find new market potential, E-commerce and fresh deals.
Also they are trying to take land for lease instead of buying full properties. This will help to reduce time and cost to open a new store.
But the lease years must be more than 9 years .It may be 30 years like this. Many landlords offer 9 year leases but they are refusing. This is a good strategy.
Fresh stores have already started in Mumbai. Anyone can buy online and he will get very near to pick his delivery. This pick up point will be a small shop like 200 -300 sq. feet space with 2-3 people will be available for customer service. Started on pilot basis.
They are working to make delivery same day or next day .The customers who purchase from online.
Also have a minimum purchase limit for delivery 1000 SR compared to big basket 1500 SR.

Risk Factors:

Low Price- Their main motto is to sell at low price as compared to others. But how long they will survive if other players come and also sell at a low price. Then how you hold the customer.

E-Commerce- This market is going to next booms in groceries retailing. Many retailers are already working and many are coming. They are also in the initial stage. How to manage.

6. Subsidiaries:

Align Retail Trades Private Limited – Company incorporated on 22nd September, 2006, is engaged in the business of packing and selling of grocery products, spices, dry fruits, etc. Its revenue from operations for FY 2019 stood at ` 920.10 crore against `701.86 crore in the previous.
AVENUE FOOD PLAZA PRIVATE LIMITED (AFPPL):

Company incorporated on 8th June, 2004. It is engaged in the business of operating food stalls at DMart stores. The Company reported net profit after tax of `5.67 crore against `4.17 crore for the previous year.

AVENUE E-COMMERCE LIMITED (AEL)

Company incorporated on 11th November, 2014 is engaged in the business of online grocery retail under the brand name “DMart Ready”. its mobile app DMart online grocery shopping and through the website www.dmart.in. Customers can either self-pick up their online orders from any designated Dmart Ready Pick-Up Points or get them delivered at their doorstep. The Company registered a loss of `50.82 crore against the loss of ` 48.08 crore in FY 2018.

NAHAR SETH & JOGANI DEVELOPERS PRIVATE LIMITED (NSJDPL):

Company incorporated on 21st February, 2014, with main object of, among others, development of land and construction and earned net profit after tax of `0.47 crore for FY 2019 against `0.48 crore lakhs for FY 2018.

REFLECT WHOLESALE AND RETAIL PRIVATE LIMITED (RWRPL)

Company incorporated on 28th May, 2018, to carry on the business of wholesale and retail of goods and products. It is yet to commence its operations.

Now in Details:

About Management:

Founder: Mr. Radhakrishnan Damani.

According to Forbes’ Real-Time Billionaires Index, the promoters of D Mart, Mr. Radhakishan Damani, have been named as 2nd richest Indian as on February 15, 2020 with a net worth a $17.8 billion.

-He is an independent non-executive director of Aptech Ltd..
He also holds membership in BST ltd, a capital market company in Mumbai which has been active for more than 100 years.

RD – wear a white shirt and white trousers. That’s why people call him Mr. White.

The Damani family’s holding in the recently-listed Avenue Supermarts is close to Rs 40,000 crore. It would be “safe and conservative” – as one market watcher puts it, to add another Rs 15,000 crore as the value of RD’s other stock market investments. This is counting out a few more thousands of crores Damani would have made in his stock trading career spanning over 40 years.

But nobody really knew RD in the 80s. A few people who knew him, called him ‘GS’, because of his ‘entry badge.
“RD is a very positive player in times of crisis… He’s a shrewd investor; makes more money when he’s bearish,”
RD was not very active in the market between 2001 and 2004 as he was busy setting up Avenue Supermarts in Mumbai and Gujarat. Several acquaintances have seen RD travelling in his Fiat Uno across Mumbai assessing good spots for his DMart stores. Some people say, RD used to work 12 – 14 hours every day of the week.
Read more at:
https://economictimes.indiatimes.com/small-biz/entrepreneurship/radhakishan-damani-his-journey-from-dalal-street-punter-to-long-term-investor-to-entrepreneur/articleshow/58230305.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

About Chairman: Mr. Ramesh Damani

Currently, Ramesh Shrichand Damani occupies the position of Chairman of Avenue Supermarts Ltd. Mr. Damani is also on the board of Aptech Ltd., V.I.P. Industries Ltd. and Ramesh S Damani Finance Pvt Ltd.

He was a member of Bombay Stock Exchange (BSE) and considered as one of the most successful investors in India. A proponent of the Warren Buffett style of value investing.

He received an MBA from California State University-Northridge and an undergraduate degree from H.R. College of Commerce & Economics.

Ramesh’s father is the main reason behind Ramesh decision to join the stock market field. Even though Damani is a successful stock marketer, initially, he lost 10000 US dollars in the stock market. Failure is the skipping stone to success, to be noticed.

Massage from Chairman:

Annual Report- 2017:

Our business model has stood the test of time, and we are focused on doing a few things but doing it well and ensuring we continue to be amongst the preferred retailers in India.

Value retail is a tough business. There is intense competition, and a constantly evolving dynamic in the form of market forces and consumer preferences.
For nearly 15 years, we have focused on the core needs of our customers, aligned our systems & processes in line with their needs, and delivered steady growth in our revenues and profitability.

Annual Report-2018:

In the past decade, the retail industry has seen significant changes globally. This is aided by momentum in technology adoption and urbanization.
In India, nearly half of the country’s private consumption is attributed to the retail industry. With supportive legislation and increasing disposable income, formal retail is expected to see good growth in the coming years.
Our team has continued directing all efforts towards providing good quality everyday use products at low prices to our customers. We constantly focus on the “voice of the customer” and I believe this has helped us fine-tune our offerings in line with what our customers are seeking.
We consider our employees, our partners, the society and the environment as important stakeholders of the business.
Our team has continued directing all efforts towards providing good quality everyday use products at low prices to our customers.

Annual Report-2019:

Our unwavering focus to delight and surprise our customers has paid off over the years and we are continuing to build on the customer trust we have earned.
We carry forward our ‘Everyday Low Cost, Everyday Low Price’ model to attract more customers to the world of DMart. We continue to open new stores using our cluster-based expansion model.
Our employees are central to our operations. Every day, they work hard with the end objective of delivering good quality products at a great value for every customer. They enable DMart to be the customer-centric organisation that we position ourselves as.
We will continue on our journey to be more accessible and affordable for our customers, by expanding our reach and improving our processes constantly. We strongly value and thank all our vendors and partners for their continued commitment and support. We will always act as a responsible citizen, accountable to society and the environment. Through all this, we will continue to deliver superior shareholder value as well.

2- Managing Director & CEO: Ignatius Navil Noronha.

He received an undergraduate degree from SIES College of Commerce & Economics and a graduate degree from Narsee Monjee Institute of Management Studies.
D-Mart was set up in 2001 and Noronha joined it in 2004 as head of business.
Damani hired Noronha, who was in his early 20s then, from consumer goods giant Hindustan Unilever, where he was a young executive in market research, sales and modern trade.
People who know him say the recent IPO was the only time when Noronha addressed the media. “He attends conferences and seminars as a participant and not as a speaker,” says an executive who knows him.
“What makes him special is that he knows how to run the company profitably in a segment that has high overheads,” says the executive with DMart.
D-Mart owns most of its stores unlike other chains. It is a consistently profitable retailer and has the best margins in the industry.
Noronha is behind the best practices that have helped DMart, which pays its suppliers within 48 hours of delivery. They, in turn, allow an additional 2-3% gross margin to the chain, enabling it to keep prices low.
https://www.business-standard.com/article/companies/navil-noronha-meet-the-low-profile-chief-executive-officer-at-d-mart-117032200349_1.html
India’s richest CEO: Avenue Supermarts’ Ignatius Navil Noronha has net worth of Rs 3,128cr
HDFC Bank Managing Director Aditya Puri was second on the list of wealthiest non-promoter professionals, with a net worth of Rs 943 crore.
The third on the list was Ramakant Baheti, Chief Financial Officer (CFO) – Avenue Supermarts, with a net worth of Rs 666 crore.
CP Gurnani, Chief Executive Officer (CEO) – Tech Mahindra, ranked fourth on the list with a net worth of Rs 594 crore, the report said

CONCALL:

CEO – June 12, 2019

We should have store level profitability, do not worry about store addition, do not worry about growth, everything will.
They are working on Fresh and cash and carry models.
Fresh already started in Mumbai, We now have 196 D-Mart Ready Pick-up Points in Mumbai. They are typical 200-300 square feet stores. On a lighter note, one deep insight is that it is easier to open 200 square feet store compared to 30,000 square
Earlier we used to say we would purchase real estate but now we are saying we will also do long-term lease because we know, if we want to open more than 20 stores, only ownership will not work but at the same time nine years lease is a very short period for us. So, we are seeing long-term lease. Also, we are working hard on ensuring that our real estate teams are well bolstered.
We like and hope that everybody in the 3 to 5 Kms radius comes and shops at our stores. That is our simple approach to the business.
They work on reverse logistic so that reduce the cost of transport.
We have only one simple principle – if the product is good and business is good, then we will bend our back to ensure that the vendor is comfortable. That is the philosophy.
We do not want to do what others are trying to do. We want to stand for something a little bit exceptional.
I come from HUL, I spent eight years there. In fact, I started my career in market research, my first two years was in market research and you can’t believe the kind of work we used to do. So, it’s not easy.
DIVIDEND NOT PAID WHY? The Company is still in the growth phase. And we have been listed for two years, so our priority at this time is conservation of available money with us and invest the same in growth. And you are seeing growth. So, we believe that is a better deployment of funds, rather than paying back the shareholders. We think the money available with us is better invested in this growth trajectory that we are in.
The new stores in the same markets reach the absolute high revenue immediately, within three months, six months or one year.

We now have 196 D-Mart Ready Pick-up Points in Mumbai. They are typical 200-300 square feet stores. On a lighter note, one deep insight is that it is easier to open 200 square feet store compared to 30,000 square

Massage from CEO:

Annual Report- 2017:

Our first DMart store opened in 2002, our 10th store in 2008, our 100th store in 2016 and we are now at 131 stores.
As I reflect on the past at each of these milestones, one singular thought that comes to my mind repeatedly is that tomorrow has larger opportunities and newer challenges than today’s achievements. A lot has been achieved and yet, there is so much more to be done.
The magnanimity and scale of this opportunity continues to keep us awake at night. My team and I are fully aware of this and are striving to build the DMart for tomorrow.
Year-after-year, we have stayed on the path of providing value through good products at great value, in a functional and convenient environment.
Our challenge and opportunity is to retain the same level of commitment and relevance among our employees, suppliers and partners to ensure we remain rooted to our core philosophy of value retailing.
We strongly believe that spending disproportionate time and efforts to up-skill and enhance competencies of existing employees brings significant tangible and intangible long-term benefits to the organization.
As we garner more footfalls to our stores, we look to further build scale and thus benefit from the resulting economics. Through our ‘Everyday Low Cost / Every Day Low Price’ strategy, we envisage a win-win situation for the customers and the Company

Annual Report-2018:

The year 2017-18 marked the opening of our 150th store. A significant milestone indeed! It took us 14 years to reach our 100th store and the next 50 opened in 2 years.
We will continue with our long-standing ethos of “ability having precedence over opportunity.
We aspire to remain competitive in a challenging and an ever-changing retail environment, while maintaining our value proposition to customers.
We will remain true to our credo of “Everyday Low Cost /Everyday Low Price” by focussing on achieving higher volumes and keeping procurement and operation costs low thus enabling us to consistently provide good quality products at low prices.
Our CSR initiatives have made good progress in providing better quality education in public schools of Mumbai. This year our efforts had a positive impact on more than 75,000 school children of the Municipal Corporation of Greater Mumbai (MCGM), by contributing to better infrastructure and learning systems. The direction is aligned towards the same ethos as our business – address each issue as deep and as comprehensively as possible.

Annual Report-2019:

We follow a cluster-based expansion approach. We thus focus on deepening our penetration in the areas where we are already present, before expanding to newer regions. Using this strategy, we added 21 stores in FY 2018-19, thus ending the year with 176 stores spread across 11 states and 1 Union Territory.
Our journey to build something valuable, exciting and endearing continued in the year 2018-19, albeit a bit slower. We ended the year with 176 stores, adding 21 new stores.
We could have done better. While all operating metrics were good, I am personally disappointed with our store opening outcomes. It is partly structural and partly our own weakness. I say structural because we typically prefer to buy land and then construct the buildings.
I also say it is our weakness because internally there are certain areas in this vertical which we can improve upon. However, it is not a problem we cannot solve, the only question to ask is ‘by when?’ We are working mighty hard on this… we hope to make good progress over the next few years.
This year operating metrics such as Same Store Sales Growth (SSSG), operating expenditure, turnover per square feet and revenue run rate of newly opened stores was very encouraging. Within those high points, SSSG pleasantly surprised us. It partly compensated for the unsatisfactory new store addition.
DMart Ready in Mumbai is still very small in terms of revenue as well as scale of operations. In a lot of ways, it is reminiscent of how the DMart business was in the initial days around 15 years back. It took a lot of time. It’s a work in progress.
We are making a lot of mistakes, but we are learning quickly. We see DMart Ready as a long gestational project that could see relatively significant outcomes after 5-7 years, maybe even more. We are in this for the long term.
Ocipals schools of Mumbai this year

Business Overview from Annual Reports:

Business & Operation:

Annual Report-2017:

During FY 2016-17, India saw some key economic policy developments – Demonetisation of Specified Bank Notes (` 500 and ` 1000) prevailing as on 8th November, 2016 and passage of the Good and Services Tax (GST) and the implementation of the same later on.
India’s GDP grew by 7.2% in the first half of FY 2016-17 on the back of export recovery and implementation of the 7th Pay Commission recommendations which buoyed consumption in the economy. Inflation stood at 3.89% as of March 2017 in line with RBI’s target of 4%.
Currently, the food and groceries (F&G) segment constitutes a majority share of the retail market (67%). F&G will continue to be the largest contributor in the retail market even four years hence with a projected share of 66% in 2020.
16 Indian states contribute approximately 85% of the total retail spend and are expected to continue having a significant share of the total retail consumption.
The state of Maharashtra contributes the highest share of around 19% among these leading states. The state is expected to continue to reflect this steady growth. Gujarat is another state that is expected to continue to reflect steady growth.

Annual Report-2018:

During the financial year 2017-18, India continued to grow on the back of strong economic fundamentals. As per the Ministry of Statistics and Programme Implementation, India’s GDP growth stood at 6.7% for 2017-18.
Owing to the introduction of the e-way bill, GST collections have improved. Monthly GST collections have crossed ` 1 trillion.
Globally, India is seen as one of the key consumer markets with consumption expenditure set to increase to USD 2 trillion by 2020 and will surpass the consumption expenditure of several other developed economies.

Key factors that will continue to drive this momentum are

(i) favorable demographics.
(ii) rapidly rising education levels.
(iii) steady growth of urbanization.
(iv) increasing penetration of mobile technology and internet infrastructure
(v) increasing aspirations and affordability and
(vi) Government’s focus on reforms, skill development, job creation, infrastructure, manufacturing and investments.
Organised retail will be a key beneficiary of this rise in consumption. The industry is expected to grow at a CAGR of ~20% to USD 115 bn by 2020, forming 12% of the total retail market
Food and Grocery will continue to dominate the retail market contributing 66% of the total value in 2020. Apparel & accessories and home & living are the other two key categories which account for 8% and 4% of the total retail market, respectively. Thus, the market opportunity is significantly large for all organized retail operators in India.
As of 31st March, 2018, we had 155 stores with Retail Business Area of 4.94 million sq.ft., located in Maharashtra (62 stores), Gujarat (30), Karnataka (12), Telangana (19), Andhra Pradesh (10), Madhya Pradesh (6), Chhattisgarh (3), NCR (1), Daman (1), Tamil Nadu (3) Rajasthan (5) and Punjab (3).

Annual Report-2019:

Your Company delivered yet another year of steady growth by opening 21 (Twenty-one) new stores, thereby taking the total count to 176 stores across the country.
The Company continued to focus on its existing strategy of offering value retailing to the customers using the EDLC/EDLP (Everyday Low Cost/Everyday Low Price) principle.
On a standalone basis, the total income for FY19 was `19,967.66 crore, which is 32.40% higher over the previous year’s income of `15,081.53 crore. Our total income on consolidated basis for FY19 was ` 20,052.87 crore as against ` 15,102.52 crore during FY 2018.
On a standalone basis, the net profit after tax (PAT) for FY19 stood at ` 936.35 crore as against previous year’s net profit of `784.68 crore thereby recording a growth of 19.33%. Our net profit after tax (PAT) on a consolidated basis for FY19 amounted for `902.46 crore as compared to `806.28 crore in the previous year.

Key Performance Indicators:

Annual Report-2017

At the end of the Fiscals 2017, 2016, 2015 and 2014, we had 131,110, 89 and 75 stores with Retail Business Area of 4.06 million sq. ft., 3.33 million sq. ft., 2.66 million sq. ft. and 2.14 million sq. ft., respectively.
We operate distribution centres and packing centres, which form the backbone of our supply chain to support our retail store network.
As of 31st March, 2017, we had 23 distribution centres and 5 packing centres in Maharashtra, Gujarat, Telangana and Karnataka.
We have witnessed a steady growth in our total number of bill cuts. Our total number of bill cuts, was 10.85 crores during the fiscal 2017 as compared to 8.47 crores during fiscal 2016.
Our annualised revenue from sales per retail business area sq. ft. (# ) was ` 31,120 for fiscal 2017 and ` 28,136 for fiscal 2016.
The IPO of 62,541,806 Equity Shares was offered to investors at a price of ` 299 per share aggregating to ` 1,870 crores.

Share Capital :

The paid up Equity Share Capital as on 31st March, 2017 amounted to ` 62,408.45 Lakhs.

Dividend:

With a view to conserve resources and expansion of business, your Directors have thought it prudent not to recommend any dividend for the financial year under review.

Key Managerial Personnel:

There were no changes in the Key Managerial Personnel during the year.

Employee Salary: Average percentage increase made in the salaries of Employees other than the managerial personnel in the financial year was 12% whereas the increase in the managerial remuneration was 2.31%. The increases in remuneration are as per the policy of the Company.

Annual Report-2018:

At the end of the Fiscals 2018, 2017, 2016, 2015 and 2014, we had 155, 131, 110, 89 and 75 stores with Retail Business Area of 4.94 million sq. ft., 4.06 million sq. ft., 3.33 million sq. ft., 2.66 million sq. ft. and 2.14 million sq. ft., respectively.
We operate distribution centers and packing centers, which form the backbone of our supply chain to support our retail store network. As of 31st March, 2018, we had 24 distribution centers and 6 packing centers in Maharashtra, Gujarat, Telangana and Karnataka.
We have witnessed a steady growth in our total number of bill cuts. Our total number of bill cuts was 13.44 crores during the fiscal 2018 as compared to 10.85 crores during fiscal 2017.
Our annualized revenue from sales per retail business area sq. ft. (^#) was ` 32,719 for fiscal 2018 and ` 31,120 for fiscal 2017

Share Capital :

The paid up Equity Share Capital as on 31st March, 2018 amounted to ` 62,408.45 Lakhs.
The Company has neither issued any shares with differential rights as to dividend, voting or otherwise nor issued any sweat equity shares during the year under review.

Dividend:

With a view to conserve resources for expansion of business, your Directors have thought it prudent not to recommend any dividend for the financial year under review.

Transfer to Reserves:

The Company has not transferred any amount of profit to the reserves during the financial year under review.

Key Managerial Personnel:

There were no changes in the Key Managerial Personnel of the Company during the year under review.

CSR Activity:

In case the Company has failed to spend the 2% of the average net profit of the last three financial years or any part thereof, the Company shall provide the reasons for not spending the amount in its Board Report.

Employee Salary:

Average percentage increase made in the salaries of Employees other than the managerial personnel in the financial year was 11% whereas the increase in the managerial remuneration for executive directors was 23.87%. The increases in remuneration are as per the policy of the Company.

Annual Report-2019:

At the end of FY 2018-19, FY 2017-18, FY 2016-17, FY 2015-16 and FY 2014-15, we had 176, 155, 131, 110 and 89 stores with retail business area of 5.9 million sq. ft., 4.9 million sq. ft., 4.1 million sq. ft., 3.3 million sq. ft. and 2.7 million sq. ft., respectively
We operate distribution centres and packing centres, which form the backbone of our supply chain to support our retail store network. As of 31st March, 2019, we had 35 distribution centres and 7 packing centres in Maharashtra, Gujarat, Telangana, Karnataka and Madhya Pradesh.
We have witnessed a steady growth in our total number of bill cuts. Our total number of bill cuts was 17.2 crores during the FY 2018-19 as compared to 13.4 crores during FY 2017-18.
Our annualised revenue from sales per retail business area sq. ft. (#) was ` 35,647 for FY 2018-19 and ` 32,719 for FY 2017-18.

Share Capital:

During FY 2019 there was no change in the authorized and paid-up share capital of the Company. The paid up Equity Share Capital as on 31st March, 2019 amounted to ` 624.08 crore.
The Company has neither issued any shares with differential rights as to dividend, voting or otherwise nor issued any sweat equity shares during the year under review.

Dividend:

With a view to conserve resources for expansion of business, your Directors have thought it prudent not to recommend any dividend for the financial year under review.

Transfer to Reserves:

The Company has not transferred any amount of profit to the reserves during the financial year under review.

Key Managerial Personnel:

There were no changes in the Key Managerial Personnel of the Company during the year under review.

CSR Activity:

In case the Company has failed to spend the 2% of the average net profit of the last three financial years or any part thereof, the Company shall provide the reasons for not spending the amount in its Board Report.
3- Years average profit is 819.9 cr. As per promised they have to spend 2% of average 3 years profits around 16.4 cr. They spend 16.55 cr.
In the financial year 2018-19, through this initiative, the Company has impacted more than 95,000 students from 296 schools.

Employee Salary:

Average percentage increase made in the salaries of Employees other than the managerial personnel in the financial year was 11.17% whereas the increase in the managerial remuneration was 2.18%. The increases in remuneration are as per the policy of the Company

SUBSIDIARIES:

REPORT ON PERFORMANCE OF SUBSIDIARIES, ASSOCIATES AND JOINT VENTURE COMPANIES:

The Company has 5 subsidiaries as on 31st March, 2019.

ALIGN RETAIL TRADES PRIVATE LIMITED (ARTPL)

ARTPL, a wholly-owned subsidiary Company incorporated on 22nd September, 2006, is engaged in the business of packing and selling of grocery products, spices, dry fruits, etc. Its revenue from operations for FY 2019 stood at ` 920.10 crore against `701.86 crore in the previous year and the Company posted net profit after tax of `10.10 crore for FY 2019 against `5.68 crore for FY 2018.

AVENUE FOOD PLAZA PRIVATE LIMITED (AFPPL):

AFPPL is a wholly-owned subsidiary Company incorporated on 8th June, 2004. It is engaged in the business of operating food stalls at DMart stores. The revenue from operations of the Company for FY 2019 stood at `23.59 crore as against `17.81 crore for FY 2018. The Company reported net profit after tax of `5.67 crore against `4.17 crore for the previous year.

AVENUE E-COMMERCE LIMITED (AEL)

AEL, a subsidiary Company incorporated on 11th November, 2014 is engaged in the business of online grocery retail under the brand name “DMart Ready”. AEL currently operates its business in select areas of Mumbai region. AEL allows its customers to order a broad range of grocery and household products through its mobile app DMart online grocery shopping and through the website www.dmart.in. Customers can either self-pick up their online orders from any designated Dmart Ready Pick-Up Points or get them delivered at their doorstep. AEL’s revenue from operations for FY 2019 stood at `143.59 crore vis-a-vis `44.13 crore in the FY 2018. The Company registered a loss of `50.82 crore against the loss of ` 48.08 crore in FY 2018.

NAHAR SETH & JOGANI DEVELOPERS PRIVATE LIMITED (NSJDPL):

NSJDPL is a subsidiary Company incorporated on 21st February, 2014, with main objective of, among others, development of land and construction. Revenue from operations of the Company for FY 2019 and FY 2018 was `0.75 crore and earned net profit after tax of `0.47 crore for FY 2019 against `0.48 crore lakhs for FY 2018.

REFLECT WHOLESALE AND RETAIL PRIVATE LIMITED (RWRPL)

A wholly-owned subsidiary Company incorporated on 28th May, 2018, to carry on the business of wholesale and retail of goods and products. It is yet to commence its operations.
The Company does not have any Joint Venture or Associate Company within the meaning of Section 2(6) of the Companies Act, 2013. No material change has taken place in the nature of business of the subsidiaries.

Competitive Study:

Walmart Financial Result:

COSTCO Financial Results:

With reference to Sharia investment standards, they are ethical investments. Islamic investors prefer to invest those companies, which earn their profit through Islamic ways or Halal means.

If you want to invest to follow Islamic principles and through Sharia Conformity, you are prohibited from making investments in ‘Non Conformity stocks’, which include Banking, Interest based company, Insurance, Pork, Alcohol, Tobacco, Gambling, Weapons, Entertainment Industry etc.

Basically two types of Screening required to Find Sharia Conformity Stocks.

1. Industry Based Conformity.

2. Financial Ratio Based Conformity.

1. Industries Based Conformity:

Those companies running their business ethically that could not harm their product or service to any people, emotionally or physically are complying with sharia Law.

All those companies will be considered as shariah Compliance, means investing in these companies is Halal.

According to the Islamic law, Muslims are not allowed to invest in anything that will increase immorality, increase drugs or alcohol or even invest in companies which promote weapons of mass destruction.

What is the Non-Conformity Industry?

There are many industries that are non-complianceand investment in these companies are not allowed as per Islamic Law.

Banking
Non-Banking Financial Institution
Insurance
Housing Finance
Film Production & Entertainment
TV Broadcasting & Software Production
Breweries & Distilleries
Cigarettes/Tobacco
Investment Finance
Term Lending
Recreation/Clubs/ Amusement Parks
Weapon Product
Post Office scheme.

2. Financial Ratio Based Compliance:

Companies need to pass the below parameters for Islamic Investment.

1- Debt Ratio:

The Ratio of total Debt to Market Value of Equity is less than than 33 %. Considering trailing 12 Months Average.

2- Cash Ratio:

The ratio of Accounts Receivables to the Market value of Equity is less than 33%. Considering Trailing 12 months Average.

3- Interest Ratio:

The ratio of total Cash + Interest Bearing Securities to the Market value of Equity is less than 33 %. Considering trailing 12 months Average.

4- Impure Income ratio:

The ratio of total Interest + Impure Income to the Total Income is less than 5%. Considering trailing 12 months average.

Note:

– For Impure Ratio you have to check the percentage and same percentage of profit needed to give charity for purity of your income.

– If a company passes the above ratio along with the sector-based screens, the trading and investments in such companies are allowed as Per Sharia.

The stock market is a risky place for many people who don’t know about it. There are many myths and if you believe in these myths, you will lose a lot of money. Some of these myths are made by people who do not want to invest in the stock market.

Howeapeat.ver many myths are not true and in the stock market only assumption is the history repeats.Rest all things work based on fundamentally and technically.

We always advise investors to do their own research before investing in the market .This will give you more understanding about the market and your investment. Try to make your investing strategy on facts and not on myths.

Now in this post ,I am going to list the 13 biggest myths of the stock market.

1.Investing in the share market is like a gambling.

Most people think investing in the stock market is like gambling. Why they are saying is because they don’t know the basics of share markets.

we need to understand what exactly does it mean to buy stocks. In the stock market the investors buy the share of any company. It means he will be the partner of that company as per his share values.Now he will be ready for getting profit but at the same time also lose when company business declines. For people who invest in the share market means they are doing like a business.

But in the case of Gambling it merely takes money looser and gives to the winner.

Now don’t confuse …

2.Stock market is the place for the rich people.

Most people are not investing in the stock market because they believe that this is only for the rich.

This is completely wrong. This is one of the oldest myths. But the reality of the stock market is you can start with less money from 100 RS. No business where you can start with less money as compared to stock markets.

In case of mutual funds you can start with 5000 RS. Nowadays this amount is not a big deal.

3.Stock that has gone down will go up.

There is no gravitational force to pull down always.

It depends on many factors like business model,fundamentals of stocks ,profits of the company, financial strong holding and sales growth.

If you invest with a fundamental strong company for long terms ,definitely you will get good returns.

4.You Need a Lot of Money to Invest.

This is not true, Even you can start with 100 RS to invest in the share market. They don’t know anything about stock markets that people talked about this myth.

5.Investing is too Risky.

In any work there is a risk. But you have to know how to reduce the effect of risk. Same like in the share market is always a risk. You can minimize that risk to invest for long terms with a fundamentally strong company.

6.Gold is a Classic, Smart Investment.

This not true. Many research shows investment is share market is a smart investment specially for equity. The returns of equity is always more than Gold returns.

7.Buy a Home is an Investment.

Buying a home or any property is not an investment. Because this is a dead asset and investment is liquid asset.

I hope you will clear all your myths about share market.for any clarification please contact us.

Wish you for your investment journey. Jaza Kallah Khair.

Today everyone, especially young people, work hard day and night to live a good and comfortable life. If we talk about savings, they will say that they save 20-30 of the monthly income and they are very happy about this. If you save 20-30 percent of your income and are satisfied with it, then we tell you a game. Imagine that you have put all your savings in a boxe. After your retirement.

Now open your box and see what you have got. Also include 6 percent inflation in this entire calculation. You will get some amount as a retirement fund. Now see how you are going to manage your post-retirement expenses. Did you get what you thought? No no You must have understood that such savings are not enough to live a normal life. So where did you make a mistake? How is this big difference in your retirement funds?

You did not consider the inflation rate at the time of saving.In India inflation rate is 6-7%, it means if your money is idle for years means you are losing 6-7 % every year. That’s why investment to counter inflation and create wealth.

Saving:

The difference between your monthly income and expenses is called saving. Add all your expenses like food, luxury, school fees, med fees, drivers, rent, bills, maintenance and everything. What will be left is your savings.

Control your expenses for savings:

Pay attention to your expenses and control them. You can control expenses by limiting credit card usage, paying bills on time and adopting the right resources. Eliminate unnecessary expenses, this will increase your savings. If you invest more than your savings, then you will get good returns going forward.

It is important to track your savings, putting a deadline, or timeline, and a value to your goals. For example, if you are saving for your annual tour, you might want to target some money to save in some months to withdraw at the time of tour.

Investing:

Investing means increasing your saved money to grow, such as investing in fixed deposits, stock markets, mutual funds and other investment options.

Why Investment Needed.

After an age you feel that the money you have is not enough, you may need more money in future. In such a situation, you take the path of investment.

Initially, everyone is nervous about investing, but later when the understanding increases, then the investment process starts to get better. The truth is that if you are so big that you can earn money, then you should also invest money. Investing is not really anything but a process whereby you can use your money.

No person wants to work for a lifetime. This is also a major reason that you should invest your money so that your future can be secured. Whatever your goal is to send children abroad for higher education or to spend your retirement time by the sea, investing properly can help you achieve your financial goals.

Saving is not Investment.

Assume you have a son who wants to become a doctor in the next 15 years. In today’s situation, you need at least 50-60 lakh rupees for medical studies. Therefore, you have to save about 4 lakhs every year to fulfill your son’s gesture. Okay, you will probably save this amount as well. Do you know how much money your son needs in the next 15 years for medical studies?

About 1.0 crore rupees. You can also add 6 percent inflation only then you will be able to calculate the right. Merely saving a certain amount every month or every year will not fulfill your future objective.

https://lh3.googleusercontent.com/p8GD1tUcHhvvcxyl6SduaEzCZmaZbp6dNbrlsbM4e_rrwVsYQITJZDtcr4u0G8jpNJRBbYHiJbUzrW1XsF0cjxITgE6m6m5QnMhq_KOKsQQjz_fmL1_miZWGnXuoZuIJZ1FTS0FY

Unlike saving, when you invest your money, you do not just keep it safe but try to increase it. Saving money in a bank account cannot be called investing.

I hope that you have got knowledge of all the things related to Saving & Investing.

Wish you best for your Investment Journey.

Jazakallah Khair

This post is for all of you, who want to invest in the stock market through Halal Ways, but before investing often get entangled in the question of

How to start investing in the stock market?

How to Invest in the Stock Market?

By reading this article, you will understand very well, how to invest in the stock market as per shariah principles.

To invest in the stock market, you have to buy the share of the company listed in the stock market, and you cannot go to the direct stock market to buy or sell any share,

You have to select the company which complies with shariah Principles and you need a stock broker to buy and sell any shares, you can buy and sell any shares from the stock market only through the stock broker, the stock broker is the important link that allows the investor to reach the stock market.

Now you have understood that you need a stock broker to invest in the stock market, whenever you go to a stock broker, you have two accounts opened with the stock broker and one bank account required.

Demat Account
Trading Account.
Bank Account

Now when you open a DEMAT and TRADING account with a stock broker, then after that you can easily buy and sell any shares,

Buying share in the stock market and making a profit by selling it is called INVESTING IN STOCK MARKET.

Stock Market is the place or platform where you can buy and sell the shares of a registered company.

How can you buy shares?

With the help of Trading Account, you have to Place your order with the stockbroker using Trading Platform as per the convenience given by your stock broker to buy as many shares of any company as you want, if you have the necessary amount available to buy shares in the trading account, then assuming your order is valid. The stockbroker will instantly process your order and within a few seconds you will get those shares. All these shares will go to the Demat account and stay there up to the selling.

How can you sell shares?

Again whatever order you want to sell, you can place an order to sell that quantity of stocks using the stockbroker’s Trading platform to place the order to stockbroker, and the stockbroker immediately process the order to the stock market, then your shares are sold in seconds after demand,

Risk of Stock Market.

The stock market is always a risky Investment. Due to this many people don’t want to invest in the share market. But they don’t know if you have proper knowledge and patients so your risks will be minimal.

To reduced the risk you to follow

Choose shariah Compliance stocks.
Select Debt zero companies.
Investment for long terms, it means more than 5 years.
Select a good company with a good business model.
Good Management of the company.

Now you know the basics of the stock market and how to invest in stock markets.

So before investing in the stock market, you must also remember the following things

The Following Things to Note Before Investing in Stocks Market.

You have to convince yourself to Invest in the stock Market.
To know the stock market is a business not a gambling.
To Select a discount broker to open a trading account.
To Learn Basics of Stock Markets.
To Learn About Halal Investment.
To know investment in Equity is only Halal.
To make your investment goal.
To know your risk bearing capacity.
To know about fundamentals of a company.
Choose fundamentally strong stocks.
Make your own long term strategy for investment.

Hope you will be able to understand how to invest in the stock market, after reading of this post.

If you still have any question on how to invest in the stock market, then you can ask your questions in the comment below or through WhatsApp, you will get the answer as soon as possible.

Wish you the best for your investment Journey.

Jazakallah Khair.

In this article, we will discuss what are the various options for Halal investment ideas and options in India (Shariah conformity) and their advantages and disadvantages.

There are mainly four types of investment options available for Investors in India. Now we will discuss which is Halal investment.

Real Estate.
Share Market.
Gold.
Banking.

REAL ESTATE:

Investment in real estate is almost risk free if you get good deals. You will get rental income and for commercial properties it will be more income.

Advantages:

No inflation effect.
Real estate can provide a steady stream of income.
Real estate can provide diversification to your portfolio if you combine it with other asset classes.
Real Estate is trusted by most people and has an emotional value like gold.

Disadvantages:

1. Real Estate investments can be risky and could even provide negative returns in case of bad deals.

2. They are highly illiquid. Any time you can transfer into cash.

3. Real estate investments have high transaction and maintenance costs.

4. Capital gains from real estate is taxed at a higher rate than those from equity or equity mutual funds.

5. Gains or losses can be subject to the property selected.

6. Investments in real estate have to be big in size.

SHARE MARKET:

Many options are available in share markets as follows.

Equity
Mutual Funds
Bond
Commodity Trading
Forex.

According to the Shariah Principle you can only invest in equity and Mutual Funds.

EQUITY:

Equity means ownership of that business. Equity will give more returns if you invest for long terms, but for short terms it will be volatile in nature. You can select shariah companies who do not involve banking, insurance,alcohol ,pork ,gambling,tobacco and weapons.

Advantages:

High risk and high return, you can reduce your risk for long term investing and create good wealths
High Liquidity as compared to other investments.
You will get dividend income .
The return of equity investment is exponential as compared to other investments.

Disadvantages:

In equity investment there is no guarantee of income from principles invested. sometimes it will go negative. For short terms the stock can be volatile and give negative returns.
For retail investors it is very difficult to achieve diversification by investing in the stock market. It will take time to learn about diversification.
The costs of transaction and taxes are borne directly by the investor.

MUTUAL FUND:

Mutual funds are the safest investment in the share market, especially for new investors who want to learn and create their wealth slowly.

In indian market there are only three funds that comply with sharia principles.

Tata Ethical Fund
Taurus Ethical Fund
Reliance Shariah Bees ETF Fund.

Advantage .

The Lowest risk as compared to equity stock.
In the long term you can create more wealth due to compounding effects.
No tension for share trading, all this managed by the Fund manager.
You can invest through a systematic investment plan.
Start investing without a Demat Account.

Disadvantage.

Low return as compared to equity.
It will take more time to make good wealth.
You can start with a minimum 5000 RS initially and later 500 RS.

BOND.

A bond is a fixed income source that represents a loan made by an investor to a borrower (typically corporate or governmental). Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Owners of bonds are debtholders, or creditors, of the issuer.

Bonds do not comply with sharia principles,therefore investing in bonds is prohibited.
Bonds are units of corporate debt issued by companies and securitized as tradable assets.
A bond is referred to as a fixed income instrument since bonds traditionally paid a fixed interest rate (coupon) to debtholders. Variable or floating interest rates are also now quite common.
Bond prices are inversely correlated with interest rates: when rates go up, bond prices fall and vice-versa.
Bonds have maturity dates at which point the principal amount must be paid back in full or risk default.

COMMODITY TRADING.

Commodity trading is the buying and selling of a large range of products including oil and gas, metals such as gold and silver and soft commodities like cocoa, coffee, wheat and sugar.

In the principles of shariah for trading of any goods or product it must be physical ownership. It means whatever you buy ,you will be the owner of that goods and must be present in physical form. Then you can sell to others .

But in share market we can not get in physical form that why it is not permissible in Islam.

FOREX:

Forex trading means currency trading , like dollar,Euro,ponds ….and Indian rupees.

This is also not allowed in islam.

I hope you will learn about investment options in India and which one is compliant with shariah principles.

Wish you best for your investment journey.

Jazakallah Khair.

If you know the basic knowledge about the share market ,then you can earn money .

In the sharemarket you can earn money through 2-ways.

Full time work as Trader.
Part Time as an Investor.

TRADER.

Trader is the person who does trading means buying and selling the share in the stock market. If you want to make trading as a profession or regular income just like a job,then you have to do full time work.

There are many options to trade in the share market and make money.

Intraday Trading
Swing Trading
Short Term Trading
Long Term Trading
Option Trading
Future Trading
Short Selling

Others Income apart from share value..

Dividend
Bonus

Intraday Trading.

The buying and selling of shares on the same day is called intraday trading. When the market opens, buy the share and before the market closes sell the share.

The market opening time is 9:15 AM and closing time is 3:30 PM.

For intraday trading required full time work, you can not generate profit through part time.

Note:

Intraday trading is not permissible in islam.
Broker form by giving money for one day to trade.

Swing Trading.

The type of trade which is completed within a few days,weeks and months .

In this trade you buy the share ,keep it for a few days,weeks or few months and wait for profit.

Note.

Swing Trading is permissible in islam.

Short Term Trading:

The type of trade which is completed within 2-5 years is called short trading.

If you buy the stocks ,keep it for 2-5 years to make profit .

Note.

Short term trading is permissible in islam.

Long Term Trading:

The type of trading which is completed for more than 5 years.

In this case you buy the share and keep it for the long term to generate wealth. Many top investors in the world create wealth through long term trading. You can generate passive income through long term investing.

Note.

Short term trading is permissible in islam.

Option Trading.

Option trading is a contract that allows an investor to buy or sell an underlying instrument like a share, ETF or even index at a predetermined price over a certain period of time. Buying and selling options is done on the options market, which trades contracts based on securities.

Buying an option that allows you to buy shares at a later time is called a “call option,” whereas buying an option that allows you to sell shares at a later time is called a “put option.”

Option trading is less risky because they give less return as compared to equity.

Note – Option trading is not permissible in Islam.

Because options are not the same as stocks because they do not represent ownership in a company.

Future Trading:

Stock Future contract is an agreement to buy or sell a specified quantity of underlying equity shares for a future date at a price agreed upon between the buyer and seller. The contracts have standardized specifications like market lot, expiry day, unit of price quotation, tick size and method of settlement.

Note.

Future trading is not permissible in Islam.

Short Selling.

it is very interesting to understand the process of short selling, because in this concept shares are sold first and bought later, and the reduction in stock price can also make profit.

In general trading we buy first and after sometime sell to book profit. But in case of short selling ,it is sold first and later brought to book the profit or loss.

Note.

Short selling trading is not permissible in islam .because there is no ownership position at the time of selling.

Dividend:

Dividend is a part of a company’s NET PROFIT given by a company to its shareholder.

After making tax and all other types of ADJUSTMENT, the some percentage of NET PROFIT is distributed equally among the shareholder of the company, and the person who holds the shares, Gets the benefit of dividend in the same proportion,

There are two types of Dividend.

INTERIM DIVIDEND – When a company announces a quarterly dividend within the financial year, it is called interim dividend.
FINAL DIVIDEND – When the company announces Annual Dividend at the end of the Financial Year, it is called final dividend.

Note. Dividend is permissible in Islam.

Bonus:

A bonus share is an additional share paid absolutely free to the company’s current shareholders.

For an example, you have purchased 100 shares of the company infosys, and the company announces the issuance of bonus shares in the ratio of 1: 1 (1 bonus for 1 share)

So in this case, you will get 200 shares extra because 100 free shares will be given by the company.

Bonus share always issues in ratio such as 1:1,2:1, 3:1.

Note.

By issuing bonus shares, the “number of shares” increases with the investor, but does not increase the “amount of investment”

I hope you will understand how to make money in the share market, after reading this post.

All the best for your investment journey.

Jazakallah Khair.

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