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Last Updated on: 13 June, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 523395 | NSE: 3MINDIA

Fundamental Analysis of 3M India Ltd

Basic Stock Data

Last Updated: June 12, 2024, 2:08 pm

Market Cap 40,767 Cr.
Current Price 36,173
High / Low39,876/26,512
Stock P/E69.9
Book Value 1,906
Dividend Yield0.44 %
ROCE40.6 %
ROE30.5 %
Face Value 10.0
PEG Ratio6.28

Competitors of 3M India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
NESCO Ltd 6,638 Cr. 942958/60118.2 3260.62 %22.4 %17.0 % 2.00
Balmer Lawrie & Company Ltd 4,544 Cr. 266320/12917.6 1062.78 %15.6 %14.7 % 10.0
Industry Average5,591.00 Cr604.0017.90216.001.70%19.00%15.85%6.00

3M India Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales6907418277448408269269449779931,0461,0501,040
Expenses577650725696748731768827854822852877847
Operating Profit11392102489295158116123171194173192
OPM %16%12%12%6%11%12%17%12%13%17%19%16%18%
Other Income6678889113512101517
Interest0101102101611
Depreciation17161415131413141515141413
Profit before tax1028195418789151113143167184173196
Tax %27%26%26%26%26%25%27%26%26%25%26%25%25%
Net Profit75597030646711184106125136129146
EPS in Rs66.6152.7262.5626.7257.0159.2498.4674.8094.30110.79120.48114.70129.70

Quarterly Chart

3M India Ltd Profit & Loss

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2,7103,0172,9872,6053,3363,9594,128
Expenses2,2112,4812,5372,3452,9473,3553,398
Operating Profit499536450259389604730
OPM %18%18%15%10%12%15%18%
Other Income55604625376854
Interest2142478
Depreciation44445962555856
Profit before tax508551433220368607721
Tax %34%33%26%26%26%26%
Net Profit333366322162272451536
EPS in Rs295.91325.06285.99144.14241.43400.37475.67
Dividend Payout %0%0%0%0%0%212%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)9.91%-12.02%-49.69%67.90%65.81%
Change in YoY Net Profit Growth (%)0.00%-21.93%-37.67%117.59%-2.09%

Growth

Compounded Sales Growth
10 Years:%
5 Years:7%
3 Years:17%
TTM:6%
Compounded Profit Growth
10 Years:%
5 Years:10%
3 Years:54%
TTM:29%
Stock Price CAGR
10 Years:22%
5 Years:8%
3 Years:9%
1 Year:27%
Return on Equity
10 Years:%
5 Years:19%
3 Years:22%
Last Year:31%

Last Updated: June 8, 2024, 6:27 pm

3M India Ltd Balance Sheet

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital11111111111111
Reserves1,0551,4221,7401,8992,1721,6661,829
Borrowings10144223252724
Other Liabilities1,2346725787187981,0101,034
Total Liabilities2,3112,1182,3712,6523,0062,7142,898
Fixed Assets303286306266307338351
CWIP61272423257
Investments0000000
Other Assets2,0011,8202,0582,3622,6762,3522,540
Total Assets2,3112,1182,3712,6523,0062,7142,898

Reserves and Borrowings Chart

3M India Ltd Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 36253245321327465
Cash from Investing Activity 25-5533-14-41-15
Cash from Financing Activity -23-25-25-21-980
Net Cash Flow59-297223282265-530

Free Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow489.00522.00408.00236.00364.00577.00

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 2023
Debtor Days777165685859
Inventory Days9694921048591
Days Payable93816611494113
Cash Conversion Cycle798492584936
Working Capital Days-265466564033
ROCE %44%27%12%18%31%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 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%
FIIs3.95%3.78%4.38%4.25%4.13%4.26%4.40%3.72%3.64%3.56%3.56%3.64%
DIIs7.70%7.62%7.01%6.54%6.37%6.90%6.90%7.93%8.34%8.45%8.52%8.44%
Public13.35%13.60%13.61%14.21%14.50%13.83%13.70%13.35%13.02%12.98%12.92%12.92%
No. of Shareholders31,88735,08734,66137,23238,28237,21937,54129,88428,05428,07727,61029,198

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 Fund91,6633.83293.1277,0572024-06-1118.95%
UTI Flexi Cap Fund78,8121.02252.0277,0572024-06-112.28%
Axis Midcap Fund77,0570.98246.4177,0572024-06-110%
Nippon India Growth Fund60,0000.78191.8777,0572024-06-11-22.14%
HSBC Midcap Fund56,5001.86180.6777,0572024-06-11-26.68%
Nippon India ELSS Tax Saver Fund48,6001.09155.4177,0572024-06-11-36.93%
Canara Robeco Emerging Equities47,8640.75153.0677,0572024-06-11-37.88%
Nippon India Multi Cap Fund45,7040.55146.1577,0572024-06-11-40.69%
Nippon India Large Cap Fund30,3370.4397.0177,0572024-06-11-60.63%
UTI Mid Cap Fund28,6270.9191.5477,0572024-06-11-62.85%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)400.37241.43144.14285.99325.06
Diluted EPS (Rs.)400.37241.43144.14285.99325.06
Cash EPS (Rs.)451.57290.36199.04338.66363.90
Book Value[Excl.RevalReserv]/Share (Rs.)1489.091938.351695.791554.241271.92
Book Value[Incl.RevalReserv]/Share (Rs.)1489.091938.351695.791554.241271.92
Revenue From Operations / Share (Rs.)3514.722961.222312.302651.152678.03
PBDIT / Share (Rs.)596.88378.47252.30439.91508.13
PBIT / Share (Rs.)545.67329.55197.40387.24469.29
PBT / Share (Rs.)539.22326.24195.22383.99468.29
Net Profit / Share (Rs.)400.37241.43144.14285.99325.06
NP After MI And SOA / Share (Rs.)400.37241.43144.14285.99325.06
PBDIT Margin (%)16.9812.7810.9116.5918.97
PBIT Margin (%)15.5211.128.5314.6017.52
PBT Margin (%)15.3411.018.4414.4817.48
Net Profit Margin (%)11.398.156.2310.7812.13
NP After MI And SOA Margin (%)11.398.156.2310.7812.13
Return on Networth / Equity (%)26.8812.458.4918.4025.55
Return on Capital Employeed (%)35.4416.5311.3224.2335.97
Return On Assets (%)16.619.046.1213.5817.28
Long Term Debt / Equity (X)0.000.000.000.000.01
Total Debt / Equity (X)0.000.000.000.000.01
Asset Turnover Ratio (%)1.261.040.911.161.17
Current Ratio (X)2.173.203.103.272.55
Quick Ratio (X)1.552.562.442.501.92
Inventory Turnover Ratio (X)2.962.862.162.502.32
Dividend Payout Ratio (NP) (%)212.300.000.000.000.00
Dividend Payout Ratio (CP) (%)188.230.000.000.000.00
Earning Retention Ratio (%)-112.300.000.000.000.00
Cash Earning Retention Ratio (%)-88.230.000.000.000.00
Interest Coverage Ratio (X)92.48114.60115.82135.32509.90
Interest Coverage Ratio (Post Tax) (X)63.0474.1067.1788.97306.67
Enterprise Value (Cr.)25120.8420825.7433001.6120527.2526562.87
EV / Net Operating Revenue (X)6.346.2412.676.878.80
EV / EBITDA (X)37.3648.85116.1141.4246.40
MarketCap / Net Operating Revenue (X)6.556.6413.087.138.99
Retention Ratios (%)-112.300.000.000.000.00
Price / BV (X)15.4510.1517.8312.1718.92
Price / Net Operating Revenue (X)6.556.6413.087.138.99
EarningsYield0.010.010.000.010.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 40,813.76

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.

Undervalued: 12.83% compared to the current price 36173

Intrinsic Value: 45,359.92

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 25.40% compared to the current price ₹36173

Last 5 Year EPS CAGR: 11.14%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 22.00%, which is a positive sign.
  2. The company has higher reserves (1,683.29 cr) compared to borrowings (23.57 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (2.71 cr) and profit (488.86 cr) over the years.
  1. The stock has a high average Working Capital Days of 37.17, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 66.33, 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: 11.39%
      • 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: 35.44% (Industry Average ROCE: 19%)
      • 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%: 26.88% (Industry Average ROE: 15.85%)
      • 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): 63.04
      • 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: 1.55
      • 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: 69.9 (Industry average Stock P/E: 17.9)
      • 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: 0.00
      • 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

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 fair value of 3M India Ltd?

The latest fair value of 3M India Ltd is ₹40813.76.

What is the Market Cap of 3M India Ltd?

The Market Cap of 3M India Ltd is 40,767 Cr..

What is the current Stock Price of 3M India Ltd as on 13 June 2024?

The current stock price of 3M India Ltd as on 13 June 2024 is ₹36,173.

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 39,876/26,512.

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

The Stock P/E of 3M India Ltd is 69.9.

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 0.44 %.

What is the ROCE of 3M India Ltd?

The ROCE of 3M India Ltd is 40.6 %.

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