Is Hammond Manufacturing Company Limited (HMM.A) halal?

Q: Is Hammond Manufacturing (HMM.A) halal?

Our screener gives Hammond Manufacturing Company Limited a PASS screening result. The business — design, manufacture and sale of electrical and electronic components (enclosures, racks, cases, outlet strips, surge suppressors, electronic transformers) — is clean. Interest-bearing debt of ~C$59.0M is ~18.5% of its ~C$319M market cap (under the ~33% AAOIFI ceiling), interest income of C$246K is ~0.29% of Q2 2026 net sales (under the ~5% ceiling), and cash of ~C$36.4M is ~11.4% of market cap. Figures from the Q2 2026 interim financial statements (approved July 28, 2026), screened September 30, 2026.

Hammond Manufacturing Company Limited (TSX: HMM.A), of Guelph, Ontario, designs and manufactures electrical and electronic components — a clean business — and all three financial gates pass: interest-bearing debt of ~C$59.0M is ~18.5% of its ~C$319M market cap (under the ~33% ceiling), interest income of C$246K is ~0.29% of Q2 2026 net sales (under the ~5% ceiling), and cash of ~C$36.4M is ~11.4% of market cap. Data from Q2 2026 results, screened September 30, 2026.

The two-gate Shariah screen

Every screener on this site runs the same two gates: first, the business must be halal (no conventional insurance, banking, alcohol, gambling, weapons manufacturing, and the like); second, the financial ratios must clear (debt under roughly 33% of market cap, non-compliant income under roughly 5%).

Gate one: the business — electrical/electronic components, permissible

Hammond Manufacturing (TSX: HMM.A), headquartered in Guelph, Ontario, is "primarily involved in the design, manufacture and sale of electrical and electronic components" (Q2 2026 interim financial statements, Note 1). Its product range includes metallic and non-metallic enclosures, racks, cabinets, small electronic cases, outlet strips, surge suppressors and electronic transformers, with manufacturing facilities in Canada, the USA, the UK, Taiwan and Australia, plus a 40% ownership share of RITEC Enclosures Inc. in Taiwan. It operates in a single segment: electrical and electronic components. The business has no alcohol, tobacco, gambling, conventional finance or insurance, pork, adult entertainment, weapons, or cannabis business lines. The business gate passes.

Gate two: the ratios — all three pass

Interest-bearing debt: about C$59.0M at June 26, 2026 — C$34,075K of long-term debt (four CAD term loans at 3.83%–6.50%, including two demand term loans classified current under IFRS) plus C$24,967K of lease liabilities. Bank operating lines were unutilized (nil bank indebtedness).
Market cap: 11,344,000 shares outstanding (Note 16; no options outstanding) × C$28.62 (TSX, September 30, 2026) = about C$319M.
Debt ÷ market cap: C$59.0M ÷ C$319M = about 18.5% — under the ~33% AAOIFI ceiling (passes).
Interest income (Q2 2026 income statement, Note 12): a separately disclosed "Interest income earned on cash" line of C$246K — against net sales of C$84,995K = ~0.29% — under the ~5% AAOIFI ceiling (passes). Six months: C$514K against C$160,223K = ~0.32%.
Cash: C$36,414K at June 26, 2026 — about 11.4% of market cap, under the ~33% cash-plus-securities ceiling (passes).

All three gates pass — business, debt, and income — so this screening is a PASS. (Context: the company reported record revenue and earnings in Q2 2026 (C$7,302K net income) and declared a C$0.03 per share dividend on July 28, 2026.)

What other screeners say

Zoya: no public rating page found for HMM.A. Musaffa: no public rating page found for HMM.A. ShariaPortfolio: publishes no per-stock screening tool — no coverage found. None of the three verifiably covers the ticker as of September 30, 2026.

The bottom line

This screener gives Hammond Manufacturing Company Limited (TSX: HMM.A) a PASS. A clean electrical-components business, debt of ~C$59.0M against a ~C$319M market cap (~18.5%), interest income of ~0.29% of Q2 revenue, and cash at ~11.4% of market cap — all comfortably inside the AAOIFI-style ceilings. Snapshot dated September 30, 2026; re-checked quarterly after earnings.

Sources

Hammond Manufacturing Q2 2026 condensed consolidated interim financial statements (six months ended June 26, 2026; approved July 28, 2026) — Note 1 (TSX: HMM.A listing; business description), Note 11 (long-term debt C$34,075K), Note 8 (lease liabilities C$24,967K), Note 12 (interest income earned on cash C$246K Q2 / C$514K 6M; Note 10 bank indebtedness nil), Note 16 (11,344,000 shares outstanding; no options), cash C$36,414K, net sales C$84,995K (Q2).
Hammond Manufacturing Q2 2026 results press release (TheNewswire, July 28, 2026) — record revenue and earnings.
Hammond Manufacturing material change report / dividend press release (July 28, 2026) — C$0.03 per share dividend payable August 21, 2026.
Market data: TSX:HMM.A C$28.62 on September 30, 2026 (Finnhub).

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Frequently asked questions

Is Hammond Manufacturing (HMM.A) halal?

Our screener gives Hammond Manufacturing Company Limited a PASS screening result. The business — design, manufacture and sale of electrical and electronic components (enclosures, racks, cases, outlet strips, surge suppressors, electronic transformers) — is clean. Interest-bearing debt of ~C$59.0M is ~18.5% of its ~C$319M market cap (under the ~33% AAOIFI ceiling), interest income of C$246K is ~0.29% of Q2 2026 net sales (under the ~5% ceiling), and cash of ~C$36.4M is ~11.4% of market cap. Figures from the Q2 2026 interim financial statements (approved July 28, 2026), screened September 30, 2026.

Why does Hammond Manufacturing pass the debt gate?

At June 26, 2026 the company carried ~C$59.0M of interest-bearing debt: C$34,075K of long-term debt (four term loans, including demand term loans classified current under IFRS) plus C$24,967K of lease liabilities. Bank operating lines were unutilized (nil). Against a market cap of ~C$319M (11,344,000 shares at ~C$28.62, September 30, 2026), the debt ratio is ~18.5% — comfortably under the ~33% AAOIFI ceiling.

How much interest income does Hammond Manufacturing earn?

The Q2 2026 income statement separately discloses "Interest income earned on cash" of C$246K (Note 12), against net sales of C$84,995K — an income ratio of ~0.29%, well under the ~5% AAOIFI ceiling. For the six months ended June 26, 2026, interest income was C$514K against net sales of C$160,223K (~0.32%).

What do Zoya, Musaffa and ShariaPortfolio say about Hammond Manufacturing?

As of September 30, 2026 we found no public Zoya rating page, no Musaffa rating page, and no ShariaPortfolio coverage for HMM.A — none of the three verifiably covers the ticker. Our screener reports its own figure-by-figure analysis above.

What could change this screening?

The main watch item is the debt structure: C$31,421K of the C$34,075K long-term debt is classified current because two term loans are payable on demand, so the debt ratio is sensitive to borrowing changes. The US tariff environment also bears watching (the company flagged Section 338 tariff updates in August 2026). Re-screen quarterly after each earnings release.