⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
3MINDIA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | 3MINDIA | Market Cap | 39,358 Cr. | Current Price | 34,961 ₹ | High / Low | 37,385 ₹ |
| Stock P/E | 71.0 | Book Value | 1,430 ₹ | Dividend Yield | 0.46 % | ROCE | 38.2 % |
| ROE | 23.8 % | Face Value | 10.0 ₹ | DMA 50 | 34,332 ₹ | DMA 200 | 32,386 ₹ |
| Chg in FII Hold | 0.07 % | Chg in DII Hold | 0.27 % | PAT Qtr | 191 Cr. | PAT Prev Qtr | 178 Cr. |
| RSI | 54.7 | MACD | -104 | Volume | 3,836 | Avg Vol 1Wk | 2,895 |
| Low price | 25,714 ₹ | High price | 37,385 ₹ | PEG Ratio | 3.29 | Debt to equity | 0.06 |
| 52w Index | 79.2 % | Qtr Profit Var | 43.0 % | EPS | 492 ₹ | Industry PE | 22.7 |
📊 Core Financials
- Revenue & Profitability: PAT rose from 178 Cr. to 191 Cr. (+43% YoY), showing strong growth momentum.
- Margins: ROE at 23.8% and ROCE at 38.2% are excellent, reflecting superior efficiency.
- Debt: Debt-to-equity ratio of 0.06 indicates negligible leverage, a very strong balance sheet.
- Cash Flow: Consistent profitability supports healthy cash generation capacity.
💹 Valuation Indicators
- P/E Ratio: 71 vs. industry average of 22.7 — significantly overvalued.
- P/B Ratio: Current price (₹34,961) vs. book value (₹1,430) → ~24.4x, premium valuation.
- PEG Ratio: 3.29, suggesting growth is priced at a high multiple.
- Intrinsic Value: Market pricing reflects strong fundamentals but stretched valuations.
🏢 Business Model & Competitive Advantage
- 3M India operates across industrial, healthcare, and consumer segments, leveraging global innovation.
- Strong brand equity, diversified product portfolio, and global parent support provide a durable moat.
📈 Technicals & Entry Zone
- DMA 50 (₹34,332) and DMA 200 (₹32,386) show strong support levels.
- RSI at 54.7 indicates balanced momentum; MACD negative suggests mild consolidation.
- Entry Zone: Attractive on dips near ₹31,000–32,500 for long-term investors.
- Long-Term Holding: Strong fundamentals justify holding; suitable for wealth compounding.
✅ Positive
- Excellent ROCE (38.2%) and ROE (23.8%).
- Negligible debt (0.06 debt-to-equity).
- Consistent profit growth with strong quarterly performance.
⚠️ Limitation
- High valuation multiples (P/E 71, P/B 24.4x).
- Low dividend yield (0.46%) despite strong profits.
- PEG ratio above 3 indicates growth is already priced in.
📉 Company Negative News
- Premium valuation may limit upside in the near term.
- MACD shows short-term weakness, suggesting possible consolidation.
📈 Company Positive News
- Quarterly PAT growth (+43%) highlights strong operational performance.
- FII (+0.07%) and DII (+0.27%) holdings increased, showing institutional confidence.
🏭 Industry
- Industrial and consumer goods sector benefits from rising demand in India.
- Industry average P/E (22.7) is much lower, highlighting 3M India’s premium positioning.
🔎 Conclusion
- 3M India is financially strong with excellent returns and negligible debt.
- Valuations are stretched, but fundamentals justify long-term holding.
- Recommendation