3MINDIA - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.2

Here’s a comprehensive breakdown of 3M India Ltd (3MINDIA)

🧾 Core Financials

Revenue & Profit Growth

FY25 standalone sales rose to ₹4,445 Cr from ₹3,926 Cr in FY24

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Net profit dipped slightly to ₹476 Cr from ₹536 Cr, but quarterly PAT rebounded to ₹178 Cr from ₹71.4 Cr — a strong sequential recovery

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Profitability Ratios

ROCE: 38.2% and ROE: 23.8% — exceptional capital efficiency.

EPS: ₹441 — robust earnings per share.

Debt & Liquidity

Debt-to-equity: 0.05 — virtually debt-free.

Strong cash flows and dividend payouts (₹160 final + ₹375 special dividend in FY25) reflect healthy liquidity

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📊 Valuation Indicators

Metric Value Industry Avg Remarks

P/E Ratio 69.1 25.9 Highly overvalued

P/B Ratio ~18.6 ~5.2 Premium to book value

PEG Ratio 3.20 ~1 Price growth mismatch

Intrinsic Value ~₹22,000–₹25,000 — Overpriced vs fundamentals

The stock trades at a steep valuation, likely due to brand strength and scarcity premium.

🏢 Business Model & Competitive Edge

Segments: Safety & Industrial, Transportation & Electronics, Health Care, Consumer

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Strengths

Diversified portfolio across B2B and B2C.

Strong local manufacturing push (59.4% of revenue in FY25)

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Expanding distribution and Q-commerce footprint in 100 cities

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Risks

High royalty payments (~4.8% of net sales).

Valuation leaves little room for error.

📉 Technical & Entry Zone

Current Price: ₹30,440

DMA 50/200: ₹30,484 / ₹30,358 — hovering near support.

RSI: 45.6 — mildly oversold.

MACD: -47.1 — bearish crossover.

Suggested Entry Zone: ₹27,000–₹28,500 range, ideally near ₹26,000 support if correction continues.

🕰️ Long-Term Holding Guidance

Hold if already invested, especially for long-term compounding.

Avoid fresh entry at current levels unless valuation cools.

Ideal for long-term only if

Growth sustains above 10–12% CAGR.

Valuation normalizes below P/E 40.

Would you like a side-by-side comparison with other industrial conglomerates or a discounted cash flow model?

Sources

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Moneycontrol

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trendlyne.com

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Moneycontrol

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