Add 3M India, target price Rs 21,800: ICICI Securities

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Add 3M India, target price Rs 21,800:  ICICI Securities


ICICI Securities has add call on 3M India with a target price of Rs 21800. The current market price of 3M India Ltd. is Rs 19583.45.

3M India Ltd., incorporated in the year 1987, is a Large Cap company (having a market cap of Rs 22192.13 Crore) operating in Diversified sector.

Financials
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 690.00 Crore, up 99.32 % from last quarter Sales of Rs 346.18 Crore and down 9.63 % from last year same quarter Sales of Rs 763.53 Crore Company reported net profit after tax of Rs 75.04 Crore in latest quarter.

Investment Rationale
The brokerage models 3M India to report revenue and PAT CAGRs of 15.7% and 40.1%, respectively, over FY21-FY23E. RoE is also expected to remain above the cost of capital over the same timeframe. We maintain our ADD rating on the stock with DCF-based target price of Rs21,800 (59x FY23E). Key risks: Failure of new products and prolonged slowdown in the economy.


Promoter/FII Holdings
Promoters held 75 per cent stake in the company as of Dec 30, 2020, while FIIs held 6.4 per cent, DIIs 4.7 per cent and public and others 13.9 per cent.





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