ICICI Securities: 3M India - A Steady Value Generator

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.3M India Ltd. (75% subsidiary of 3M USA) follows same template of its parent to steadily launch research and development backed niche products at regular intervals.While 3M products do not cost much to the consumer, they serve critical purposes and add considerable value. Hence, there is high stickiness to 3M products, even in B2B segments.Steady growth (5-10%) in India’s key segments (auto, telecom, healthcare, consumer, construction, mining and safety) will lead to sustainable growth for 3M products.3M India generated return on equity more than cost of capital and profit after tax compound annual growth rate of 17% over CY08-FY20 due to moats like strong brands (3M, Post-it, ScotchBrite, Command), strong distribution network and 3M car care centres, and access to technology pool of parent.Increase in domestic manufacturing will lead to structural margin expansion bridging the 600 basis points gap between 3M India and parent’s Ebitda margins.We model 3M India to report PAT CAGR of 8.2% over FY20-FY23E..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ICICI Securities: 3M India - A Steady Value Generator

ICICI Securities: 3M India - A Steady Value Generator

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