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HomeBusiness₹220 to ₹23,919: Debt-free multibagger stock turns ₹1 lakh to ₹1 Cr

₹220 to ₹23,919: Debt-free multibagger stock turns ₹1 lakh to ₹1 Cr

A large-cap company with a market value of 26,945.65 crore, 3M India Ltd. operates in the diversified industry. Abrasives, adhesives, sealants and fillers, advanced materials, auto parts and hardware, building supplies, cleaning products, coatings, compounds and polishes, dental and orthodontics, lab supplies and testing, labels, lubricants, personal protective equipment, office supplies, signage and marking, tapes and tool manufacturing are among the products produced by 3M India Limited. According to Value Research statistics, 3M India Ltd. a debt free company, but what might sound more intriguing to potential investors is that 3M India is one of the multibagger stocks that have made investors’ lakhpati crorepati over a long period of time. – term investment.

3M India Stock Price History

Shares of 3M India ended Friday’s trading session on the BSE at 23,919.65 each, up 4.50% from the previous close of 22,890.10. The total volume recorded by the stock was 1,188 shares lower than the 20-day average volume of 286 shares. The share price has risen dramatically from 220 on July 11, 1997 to the current market price, with a multi-dredging yield and a record high of 10,772.57%; as a result, if an investor had invested 1 lakh in stock 25 years ago, the amount would now have grown to 1.08 kr.

The stock has risen 64.12% in the past five years, but has fallen by 4.72% in the past year. The stock fell 7.30% year-to-date (YTD) in 2022. On the BSE, the stock had reached a 52-week high of 27,800.00 on (08/11/2021) and a 52-week low of 17,300.00 on (27/05/2022), indicating that the stock is trading 13.95% below the high and 38.26% above the low at the current market price. As of Friday’s close, the stock traded above the 5 Day, 10 Day, 20 Day, 50 Day, 100 Day and 200 Day Exponential Moving Average (EMA), indicating strong price movement is expected in the near term.

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The RSI indicator value for 3M India Limited on 16/09/2022 was 66.61 suggesting that the stock is not in an overbought or oversold state. The stock currently trades at a P/B ratio of 12.35, PE of 82.68x and EV/EBITDA of 53.05x, making it an overvalued stock compared to its competitors such as Quess Corp Ltd, Bombay Burmah Trading Corporation, Nava Ltd, Balmer Lawrie & Company Ltd.

Should you buy the shares of 3M India?

On Thursday, the research analysts of the brokerage firm ICICI Securities said in their note that “3M India’s FY22 Annual Report highlights the following: (1) the company is expanding its local manufacturing capacity for respirators, masks, hand sanitizers, etc.; it will also supply industrial consumables to mobile phone manufacturers using the PLI schemes. (2) 3M India is steadily investing in expanding Scotch Brite’s offline and online reach. (3) It introduced four products in the automotive and consumer segments. We expect the launch of additional products in tandem with the normalization of the economy. (4) Royalty as a percentage of sales decreased from 5.3% in FY21 to 5.2% in FY22. We remain positive about 3M India due to competitive advantages such as: (1) strong brands, (2) established distribution network and global relationships with major manufacturers, and (3) access to the parent company’s technology pool.”

They further added: “We are modeling 3M India to report revenue and PAT CAGRs of 16.6% and 39.4% respectively over FY22-FY24E with steady improvement in RoE. Continue to BUY with a DCF based target price of Rs26,500. Main risks: prolonged weakness in the economy and failure of new products.”

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Disclaimer: The views and recommendations made above are those of individual analysts or brokerage firms, not Mint.

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