3MINDIA - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.3

Let’s unpack the strength behind 3M India’s fundamentals and explore whether it’s worth a long-term spot in your portfolio.

📊 Core Financials Snapshot

Profitability & Returns

ROE: 30.5% and ROCE: 40.5% — both exceptionally strong, reflecting high capital efficiency.

EPS at ₹543 is impressive; very profitable relative to size.

Quarterly PAT dipped from ₹173 Cr to ₹157 Cr, but overall Qtr Profit Var +21.6% shows resilience.

Debt & Cash Flow

Debt-to-equity at 0.01 — virtually debt-free, indicating strong balance sheet quality.

Dividend Yield 0.52% — modest, supports long-term stability but not income-focused.

💸 Valuation Metrics

Metric Value Commentary

P/E Ratio 57.2 Extremely premium vs Industry PE of 24.9

P/B Ratio ~16.23 Strong brand premium; Book Value ₹1,906

PEG Ratio 1.07 Fairly priced for its growth potential

Intrinsic Value ⚠️ Not computed But current levels suggest stretched valuations

🧠 Business Model & Moat

A subsidiary of the global 3M conglomerate, it offers diversified products across healthcare, industrial, consumer and safety segments.

The innovation-driven model and low debt structure give it a defensive moat.

Stable FII/DII holdings imply institutional confidence, but no major accumulation.

📉 Technical & Sentiment Check

RSI at 63.9 — nearing overbought zone; trend momentum is positive but stretched.

MACD: 551 — strong bullish momentum.

Current Price: ₹30,915 is sandwiched between DMA 50 (₹29,724) and DMA 200 (₹30,181) — mixed sentiment short term.

52W Range: ₹25,714 – ₹41,000 — currently ~34% off its 52W high, so recovery potential exists.

📍 Suggested Entry Zone & Holding Strategy

Entry Zone: ₹28,000–₹30,000 — slightly below current levels, near DMA support.

Long-Term View: Solid fundamentals, strong ROE/ROCE, and near debt-free balance sheet make it ideal for buy-and-hold investors focused on quality over valuation.

Let me know if you want a peer comparison or visual chart. I can map out possible target zones based on technicals or run a multi-stock dashboard if you're exploring this sector. 🧠📈

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