Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 26 February, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 523395 | NSE: 3MINDIA

Fundamental Analysis of 3M India Ltd

About the Company - 3M India Ltd

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

3M India Ltd. Share Price Update

Share PriceValue
Today₹33,013.00
Previous Day₹33,056.25

Basic Stock Data of 3M India Ltd

Market Cap 34,251 Cr.
Current Price 30,391
High / Low39,876/21,650
Stock P/E62.7
Book Value 1,634
Dividend Yield0.33 %
ROCE31.4 %
ROE23.4 %
Face Value 10.0

Data Source: screener.in

Competitors of 3M India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Balmer Lawrie & Company Ltd 4,392 Cr. 257291/10819.3 97.02.92 %10.1 %10.2 % 10.0
Industry Average4 Cr25719.3972.92%10.1%10.2%10

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

3M India Ltd 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%

3M India Ltd 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%

3M India Ltd Growth

Compounded Sales Growth
10 Years:%
5 Years:8%
3 Years:10%
TTM:12%
Compounded Profit Growth
10 Years:%
5 Years:6%
3 Years:12%
TTM:46%
Stock Price CAGR
10 Years:25%
5 Years:10%
3 Years:17%
1 Year:47%
Return on Equity
10 Years:%
5 Years:18%
3 Years:15%
Last Year:23%

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

3M India Ltd 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

3M India Ltd 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%

3M India Ltd Financial Efficiency Indicators Chart

3M India Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%
FIIs3.76%3.95%3.78%4.38%4.25%4.13%4.26%4.40%3.72%3.64%3.56%3.56%
DIIs7.64%7.70%7.62%7.01%6.54%6.37%6.90%6.90%7.93%8.34%8.45%8.52%
Public13.60%13.35%13.60%13.61%14.21%14.50%13.83%13.70%13.35%13.02%12.98%12.92%
No. of Shareholders28,82331,88735,08734,66137,23238,28237,21937,54129,88428,05428,07727,610

3M India Ltd Shareholding Pattern Chart

No. of 3M India Ltd Shareholders

3M India Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Nippon India Focused Equity Fund861333.71256.36
UTI Flexi Cap Fund834021.02248.23
Axis Midcap Fund770571.04229.34
Nippon India Growth Fund600000.94178.58
HSBC Midcap Fund565002.1168.16
Nippon India Tax Saver Fund500001.21148.81
Nippon India Multi Cap Fund457040.65136.03
Bandhan Flexi Cap Fund368481.84109.67
UTI Mid Cap Fund332281.1398.9
UTI Large Cap Fund315000.8593.75

3M India Ltd ROCE Trend

3M India Ltd EPS Trend

3M India Ltd 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

3M India Ltd Profitability Ratios (%)

3M India Ltd Liquidity Ratios

3M India Ltd Liquidity Ratios (%)

3M India Ltd Interest Coverage Ratios (X)

3M India Ltd Valuation Ratios

Fair Value / Intrinsic Value of 3M India Ltd

Fair Value: ₹24052.83

The stock is overvalued by 20.86% compared to the current price ₹30391

*Investments are subject to market risks

Strength and Weakness of 3M India Ltd

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 is trading at a high valuation with an average P/B ratio of 385.83 and average Dividend Yield of 13.46%.
  2. The stock has a high average Working Capital Days of 37.17, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 66.33, which may not be favorable.

Should I Buy 3M India Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding 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: 10.1%)
      • 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. 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.
    4. 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.
    5. ✗ Stock P/E of 63.7 (Industry average Stock P/E: 18.4)
      • 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.
    6. ✓ 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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