I-Sec maintains Buy on 3M India, target price Rs 33,500

ICICI Securities has maintained the Buy call on 3M India with a target price of Rs 33,500. The current market price of 3M India is Rs 29,495. 3M India, incorporated in 1987, is a Large Cap company with a market cap of Rs 33371.70 crore, operating in a Diversified sector.

3M India's key products/revenue segments include Transportation & Electronics, Safety & Industrial, Health Care, Consumer Products, Others for the year ending 31-Mar-2024.

Financials

For the quarter ended 30-06-2024, the company has reported a Consolidated Total Income of Rs 1068.33 crore, down -5.01% from last quarter Total Income of Rs 1124.73 crore and up .33 % from last year same quarter Total Income of Rs 1064.82 crore. The company has reported net profit after tax of Rs 157.15 crore in the latest quarter.

The company?s top management includes Mr.Bharat D Shah, Ms.Radhika Rajan, Mr.Amit Laroya, Ms.Yun Jin, Ms.Vidya Sarathy, Mr.Ramesh Ramadurai, Mr.Bharat D Shah, Mr.Biren Gabhawala, Ms.Radhika Rajan, Mr.Amit Laroya, Ms.Yun Jin, Ms.Vidya Sarathy, Mr.Ramesh Ramadurai, Mr.Biren Gabhawala. Company has BSR & Co. LLP as its auditors. As on 31-03-2025, the company has a total of 1 crore shares outstanding.

Investment Rationale
ICICI Securities models 3M India to report revenue and PAT CAGRs of 11.7% and 22.8%, respectively, over FY25?27E with RoE>cost of capital. The brokerage values the stock as per the DCF methodology with a target price of Rs 33,500 (implied target P/E of 50x FY27E). The key risks are a steep increase in competitive pressure; and commodity inflation.