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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 523395 | NSE: 3MINDIA

3M India Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 10:35 pm

Market Cap 35,334 Cr.
Current Price 31,304
High / Low41,000/28,424
Stock P/E57.8
Book Value 1,906
Dividend Yield0.51 %
ROCE40.5 %
ROE30.5 %
Face Value 10.0
PEG Ratio1.90

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for 3M India Ltd

Competitors of 3M India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
NESCO Ltd 7,013 Cr. 9951,059/74918.7 3450.60 %22.4 %17.0 % 2.00
DCM Shriram Ltd 20,176 Cr. 1,2931,371/83238.7 4260.51 %8.99 %6.60 % 2.00
Balmer Lawrie & Company Ltd 3,648 Cr. 213320/15313.9 1044.00 %15.6 %14.7 % 10.0
3M India Ltd 35,334 Cr. 31,30441,000/28,42457.8 1,9060.51 %40.5 %30.5 % 10.0
Industry Average16,542.75 Cr8,451.2532.28695.251.41%21.87%17.20%6.00

All Competitor Stocks of 3M India Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales7448408269269449779931,0461,0501,0401,0061,0951,047
Expenses696748731768827854822852877847827880841
Operating Profit489295158116123171194173192179214205
OPM %6%11%12%17%12%13%17%19%16%18%18%20%20%
Other Income8889113512101517173022
Interest1102101611113
Depreciation15131413141515141413131314
Profit before tax418789151113143167184173196181231211
Tax %26%26%25%27%26%26%25%26%25%25%25%25%26%
Net Profit30646711184106125136129146135173157
EPS in Rs26.7257.0159.2498.4674.8094.30110.79120.48114.70129.70120.05153.44139.50

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: October 26, 2024, 2:43 pm

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales2,7103,0172,9872,6053,3363,9594,1894,186
Expenses2,2112,4812,5372,3452,9473,3553,4303,396
Operating Profit499536450259389604759791
OPM %18%18%15%10%12%15%18%19%
Other Income5560462537687886
Interest21424735
Depreciation4444596255585353
Profit before tax508551433220368607781819
Tax %34%33%26%26%26%26%25%
Net Profit333366322162272451583611
EPS in Rs295.91325.06285.99144.14241.43400.37517.90542.69
Dividend Payout %0%0%0%0%0%237%132%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)9.91%-12.02%-49.69%67.90%65.81%29.27%
Change in YoY Net Profit Growth (%)0.00%-21.93%-37.67%117.59%-2.09%-36.54%

3M India Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 6 years from 2018-2019 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:%
5 Years:7%
3 Years:17%
TTM:3%
Compounded Profit Growth
10 Years:%
5 Years:10%
3 Years:53%
TTM:23%
Stock Price CAGR
10 Years:17%
5 Years:7%
3 Years:7%
1 Year:2%
Return on Equity
10 Years:%
5 Years:19%
3 Years:22%
Last Year:30%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital11111111111111
Reserves1,0551,4221,7401,8992,1721,6662,136
Borrowings10144223252718
Other Liabilities1,2346725787187981,0101,083
Total Liabilities2,3112,1182,3712,6523,0062,7143,248
Fixed Assets303286306266307338332
CWIP612724232512
Investments0000000
Other Assets2,0011,8202,0582,3622,6762,3522,903
Total Assets2,3112,1182,3712,6523,0062,7143,248

Reserves and Borrowings Chart

Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +36253245321327465643
Cash from Investing Activity +25-5533-14-41-15-269
Cash from Financing Activity +-23-25-25-21-980-128
Net Cash Flow59-297223282265-530246

Free Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow489.00522.00408.00236.00364.00577.00741.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days77716568585961
Inventory Days969492104859177
Days Payable93816611494113120
Cash Conversion Cycle79849258493619
Working Capital Days-26546656403323
ROCE %44%27%12%18%31%41%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%
FIIs4.38%4.25%4.13%4.26%4.40%3.72%3.64%3.56%3.56%3.64%3.77%4.07%
DIIs7.01%6.54%6.37%6.90%6.90%7.93%8.34%8.45%8.52%8.44%8.27%8.13%
Public13.61%14.21%14.50%13.83%13.70%13.35%13.02%12.98%12.92%12.92%12.95%12.80%
No. of Shareholders34,66137,23238,28237,21937,54129,88428,05428,07727,61029,19829,24330,045

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India Focused Equity Fund91,6633.83293.1245,7042024-11-20100.56%
UTI Flexi Cap Fund78,8121.02252.0245,7042024-11-2072.44%
Axis Midcap Fund77,0570.98246.4145,7042024-11-2068.6%
Nippon India Growth Fund60,0000.78191.8745,7042024-11-2031.28%
HSBC Midcap Fund56,5001.86180.6745,7042024-11-2023.62%
Nippon India ELSS Tax Saver Fund48,6001.09155.4145,7042024-11-206.34%
Canara Robeco Emerging Equities47,8640.75153.0645,7042024-11-204.73%
Nippon India Multi Cap Fund45,7040.55146.1545,7042024-11-200%
Nippon India Large Cap Fund30,3370.4397.0145,7042024-11-20-33.62%
UTI Mid Cap Fund28,6270.9191.5445,7042024-11-20-37.36%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)517.90400.37241.43144.14285.99
Diluted EPS (Rs.)517.90400.37241.43144.14285.99
Cash EPS (Rs.)564.89451.57290.36199.04338.66
Book Value[Excl.RevalReserv]/Share (Rs.)1905.801489.091938.351695.791554.24
Book Value[Incl.RevalReserv]/Share (Rs.)1905.801489.091938.351695.791554.24
Revenue From Operations / Share (Rs.)3718.893514.722961.222312.302651.15
PBDIT / Share (Rs.)743.33596.88378.47252.30439.91
PBIT / Share (Rs.)696.34545.67329.55197.40387.24
PBT / Share (Rs.)693.48539.22326.24195.22383.99
Net Profit / Share (Rs.)517.90400.37241.43144.14285.99
NP After MI And SOA / Share (Rs.)517.90400.37241.43144.14285.99
PBDIT Margin (%)19.9816.9812.7810.9116.59
PBIT Margin (%)18.7215.5211.128.5314.60
PBT Margin (%)18.6415.3411.018.4414.48
Net Profit Margin (%)13.9211.398.156.2310.78
NP After MI And SOA Margin (%)13.9211.398.156.2310.78
Return on Networth / Equity (%)27.1726.8812.458.4918.40
Return on Capital Employeed (%)35.8335.4416.5311.3224.23
Return On Assets (%)17.9616.619.046.1213.58
Asset Turnover Ratio (%)1.411.261.040.911.16
Current Ratio (X)2.522.173.203.103.27
Quick Ratio (X)2.021.552.562.442.50
Inventory Turnover Ratio (X)2.802.962.862.162.50
Dividend Payout Ratio (NP) (%)19.30212.300.000.000.00
Dividend Payout Ratio (CP) (%)17.70188.230.000.000.00
Earning Retention Ratio (%)80.70-112.300.000.000.00
Cash Earning Retention Ratio (%)82.30-88.230.000.000.00
Interest Coverage Ratio (X)260.3392.48114.60115.82135.32
Interest Coverage Ratio (Post Tax) (X)182.3863.0474.1067.1788.97
Enterprise Value (Cr.)33848.6425120.8420825.7433001.6120527.25
EV / Net Operating Revenue (X)8.086.346.2412.676.87
EV / EBITDA (X)40.4237.3648.85116.1141.42
MarketCap / Net Operating Revenue (X)8.406.556.6413.087.13
Retention Ratios (%)80.69-112.300.000.000.00
Price / BV (X)16.4015.4510.1517.8312.17
Price / Net Operating Revenue (X)8.406.556.6413.087.13
EarningsYield0.010.010.010.000.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of 3M India Ltd as of November 21, 2024 is: 33,772.24

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, 3M India Ltd is Undervalued by 7.88% compared to the current share price 31,304.00

Intrinsic Value of 3M India Ltd as of November 21, 2024 is: 44,026.42

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, 3M India Ltd is Undervalued by 40.64% compared to the current share price 31,304.00

Last 5 Year EPS CAGR: 30.36%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 24.71%, which is a positive sign.
  2. The company has higher reserves (1,727.14 cr) compared to borrowings (22.71 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (2.88 cr) and profit (535.88 cr) over the years.
  1. The stock has a high average Working Capital Days of 35.14, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 59.57, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in 3M India Ltd:
    1. Net Profit Margin: 13.92%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 35.83% (Industry Average ROCE: 21.87%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 27.17% (Industry Average ROE: 17.2%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 182.38
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 2.02
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 57.8 (Industry average Stock P/E: 32.28)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

3M India Ltd. is a Public Limited Listed company incorporated on 04/07/1987 and has its registered office in the State of Karnataka, India. Company’s Corporate Identification Number(CIN) is L31300KA1987PLC013543 and registration number is 013543. Currently Company is involved in the business activities of Machining; treatment and coating of metals. Company’s Total Operating Revenue is Rs. 3078.30 Cr. and Equity Capital is Rs. 11.27 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
DiversifiedPlot No 48-51, Bengaluru Karnataka 560100investorhelpdesk.in@mmm.com
http://www.3m.com/in
Management
NamePosition Held
Mr. Bharat D ShahChairman & Ind.Director
Mr. Ramesh RamaduraiManaging Director
Ms. Vidya SarathyWholeTime Director & CFO
Ms. Yun JinNon Executive Director
Mr. Amit LaroyaNon Executive Director
Ms. Radhika RajanIndependent Director
Mr. Biren GabhawalaIndependent Director

FAQ

What is the latest intrinsic value of 3M India Ltd?

The latest intrinsic value of 3M India Ltd as on 21 November 2024 is ₹33772.24, which is 7.88% higher than the current market price of ₹31,304.00.

What is the Market Cap of 3M India Ltd?

The Market Cap of 3M India Ltd is 35,334 Cr..

What is the current Stock Price of 3M India Ltd as on 21 November 2024?

The current stock price of 3M India Ltd as on 21 November 2024 is ₹31,304.

What is the High / Low of 3M India Ltd stocks in FY 2024?

In FY 2024, the High / Low of 3M India Ltd stocks is 41,000/28,424.

What is the Stock P/E of 3M India Ltd?

The Stock P/E of 3M India Ltd is 57.8.

What is the Book Value of 3M India Ltd?

The Book Value of 3M India Ltd is 1,906.

What is the Dividend Yield of 3M India Ltd?

The Dividend Yield of 3M India Ltd is 0.51 %.

What is the ROCE of 3M India Ltd?

The ROCE of 3M India Ltd is 40.5 %.

What is the ROE of 3M India Ltd?

The ROE of 3M India Ltd is 30.5 %.

What is the Face Value of 3M India Ltd?

The Face Value of 3M India Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in 3M India Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE