Add 3M India, target price Rs 26,900: ICICI Securities

ICICI Securities has add call on 3M India with a target price of Rs 26,900. The current market price of 3M India is Rs 25,800. Time period given by analyst is year when 3M India price can reach defined target.

3M India Ltd., incorporated in the year 1987, is a Large Cap company (having a market cap of Rs 28515.67 Crore) operating in Diversified sector.

Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 834.38 Crore, up 11.68 % from last quarter Total Income of Rs 747.13 Crore and up 21.70 % from last year same quarter Total Income of Rs 685.59 Crore. Company reported net profit after tax of Rs 70.47 Crore in latest quarter.

Investment Rationale
The brokerage earnings estimates are unchanged; modelling revenue / EBITDA / PAT CAGR of 13 / 13 / 16 (%) over FY21-23E. It maintains BUY with DCF- based target price of Rs550 (Rs500 earlier). At the target price, the stock will trade at 45x P/E multiple Mar-23E. Key downside risk is higher-than-expected inflation in copra prices and demand deceleration.

Promoter/FII Holdings
Promoters held 75 per cent stake in the company as of March 31, 2021, while FIIs held 6.4 per cent, DIIs 5 per cent and public and others 13.9 per cent.


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