Is DPLM.L (Diploma PLC) Halal or Haram?

Based on our AAOIFI-standard shariah screening, DPLM.L is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (4.97% vs ≤33% threshold), interest income ratio (0.05% vs ≤5% threshold), and cash & securities ratio (0.87% vs ≤33% threshold).

Diploma PLC is a global distributor of specialized technical products and services operating across three main sectors: Life Sciences, Seals, and Controls. The company supplies essential equipment ranging from clinical diagnostics and surgical devices for hospitals to industrial seals and specialized wiring, making it a critical player in the industrial distribution supply chain. For Muslim investors, Diploma PLC is an excellent example of a fully shariah-compliant stock. The company successfully passes all AAOIFI screening criteria, meaning its core business activities are permissible and its financial structure strictly aligns with Islamic finance principles. From a financial perspective, the company demonstrates exceptional balance sheet strength that easily satisfies halal investment thresholds. Its debt-to-market cap ratio sits at a very low 5.0%, well below the 33% limit, while interest-bearing cash and securities account for just 0.9% of its market valuation. Furthermore, impermissible interest income is virtually non-existent at 0.05% of total revenue. As there are no major scholarly debates regarding the permissibility of distributing medical and industrial equipment, the primary task for halal investors is simply to monitor future earnings reports. Investors should ensure that any future acquisitions by Diploma PLC do not introduce significant leverage that could breach the 33% AAOIFI debt threshold. Diploma PLC operates in the Industrials sector under the Industrial - Distribution industry and is headquartered in London, GB. The company is led by CEO Jonathan David Thomson and employs approximately 3,597 people.

DPLM.L was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. DPLM.L passed 4 of these 4 screens.

Although DPLM.L passes all shariah screens, it does earn $700,000 in interest income (0.05% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $0.05 to purify the income.

DPLM.L was last screened on 2026-05-01. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.