3M India Ltd. share price target

We remain constructive on 3M India after analysing its FY25 annual report. There is focus on local manufacturing. Revenues from local manufacturing have increased from 52.9% in FY14 to 59.4% in FY25.

3M India’s EBITDA margin of 14.1% in Q3FY25 was at its lowest since the past nine quarters. We believe INR depreciation and higher freight cost impacted 3M’s margins.

Following a review of 3M India’s FY24 annual report, our conviction on the company’s performance and potential remains strong

3M India has declared/paid total dividend per share (incl. special dividend) of INR 1,635/share over FY22-24, indicating dividend payout ratio of 141%.

We remain enthused about 3M India post analysing its FY23 annual report. Key highlights: (1) Most end-user industries – e.g. automotive, infrastructure and manufacturing – have reported revival, which augurs well for 3M India. (2) Company has passed on additional costs with a lag and, with relatively stable exchange rates, it improved its EBITDA margin to 15.3% in FY23 from 11.7% in FY22.

3M India maintained strong growth momentum with eighth straight quarter of 11%+ revenue growth YoY and sixth straight quarter of 25%+ EBITDA growth YoY. We believe the revival in industrials, infrastructure and automotive sectors augurs well for most segments of 3M India.

3M India reported 5th consecutive quarter of EBITDA growth higher than 23% YoY. Strong revival in manufacturing, infrastructure and automotive sectors has resulted in healthy growth for 3M India. Correction in crude oil prices, other commodities and stable forex rates also offer margin tailwinds.

3M India is back-on-track in its growth journey with YoY revenue and PAT growth of 20.2% and 87%, respectively. It has reported 4th successive quarter with EBITDA growth of 33%+ YoY after reporting 32% growth in FY22 over FY21. With recovery in key customer industries such as Industrials, automotive, infrastructure and construction, we remain confident that 3M India is on track to report revenue CAGR of 16.6% over FY23-25.

3M India has announced its first-ever dividend (Rs850/share), which is the key highlight of Q2FY23 result.

3M India’s FY22 annual report highlights the following: (1) Company is
expanding its local manufacturing capacity for respirators, masks, hand sanitisers, etc; it will also supply industry consumables to mobile phone manufacturing companies availing the PLI schemes.

3M India reported healthy revenue growth of 26.8% YoY, led by strong print across all segments.

3M India Ltd Q2FY19 results Comment Revenue fell by 2.54% to Rs. 682.86 Cr in Q2FY19 when compared to the previous quarter. On the other hand, it rose by 20.36% when compared with Q2FY18.