At a Glance:3M India, the quiet MNC stock in your uncle’s long-term portfolio, has given decent returns but shows no sales muscle. While margins and ROCE remain elite, revenue growth over 5 years has been underwhelming. And with a 69x P/E, the price tag assumes you’re buying the whole lab, not just Post-it Notes and N95 masks.
1. 🧬 Business Model — Not Just Scotch Tape & Dust Masks
- Four segments rule the portfolio:
- 🛡️ Safety & Industrial
- 🚗 Transportation & Electronics
- 🏥 Healthcare
- 🏠 Consumer (hello, Scotch Brite and Post-it!)
- 3M India operates like a local sales arm of the U.S. parent — high-quality but limited autonomy
- R&D centre in Bengaluru is a hub, but big innovations happen abroad
📦 In short: Premium seller of global MNC products, but lacks India-first disruption
2. 📊 5-Year Financials: Profits Great, Growth Meh
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 2,420 | 3,078 | 3,733 | 3,927 | 4,446 |
| Net Profit (₹ Cr) | 149 | 266 | 416 | 536 | 476 |
| EPS (₹) | 133 | 236 | 369 | 476 | 423 |
| ROCE (%) | 9% | 15% | 25% | 33% | 37% |
| OPM (%) | 10% | 12% | 15% | 18% | 17% |
- 🧠CAGR (Sales):13%
- 💥CAGR (PAT):33%
- 💰CAGR (Stock Price):11%
Translation? Good margins, but you’re paying a premium for predictability, not growth.
3. 📉 Q4 FY25 Results: Profit Dropped Like a Mic
| Quarter | Sales (₹ Cr) | OPM % | Net Profit (₹ Cr) | EPS (₹) |
|---|---|---|---|---|
| Mar-24 | 1,198 | 19% | 161 | 143.1 |
| Mar-25 | 1,198 | 19% | 71 | 63.3 |
- Same sales. Profits halved.
- Thanks to a68% tax rate— likely due to adjustments or one-offs
- EPS is now back to FY23 levels
4. 🧨 Valuation Check: Premium Kharche Pe, Budget Growth Pe?
| Metric | Value |
|---|---|
| CMP | ₹29,145 |
| P/E (TTM) | 69x |
| P/B | 17.8x |
| Book Value | ₹1,639 |
| Dividend Yield | 0.55% |
📉Fair Value Range(FY26E EPS: ₹470, Sector P/E 35–45x):👉 ₹16,500 – ₹21,150
⚠️ Stock isover 30% abovethe optimistic fair value. Unless growth surprises, it’s already
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