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3M India - Strong Growth In End-User Industries Leading To Healthy EVA Creation: ICICI Securities

Steady launch of new products.

<div class="paragraphs"><p>3M India Ltd. (Source: Company website)</p></div>
3M India Ltd. (Source: Company website)

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ICICI Securities Report

We remain enthused about 3M India Ltd. post analysing its FY23 annual report. Key highlights:

  • Most end-user industries – e.g. automotive, infrastructure and manufacturing – have reported revival, which augurs well for 3M India.

  • 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 has continued to introduce multiple new products and invest in partnerships. We model these investments to be discounted cash flow-accretive.

We remain positive on 3M India due to its competitive advantages such as:

  1. strong brands,

  2. established distribution network,

  3. global relationships with large manufacturers, and

  4. access to parent’s technology pool.

Maintain 'Buy' with a revised DCF-based target price of Rs 35,200 (implied price/earning 56 times FY25E earnings per share).

Click on the attachment to read the full report:

ICICI Securities 3M India FY23 Annual Report Analysis.pdf
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