ICICI Securities: 3M India - Long-Term Value Generator Passing Through Short-Term Weakness
Signage stands outside 3M Co. headquarters in St. Paul, Minnesota, U.S. (Photographer Mike Bradley/Bloomberg)

ICICI Securities: 3M India - Long-Term Value Generator Passing Through Short-Term Weakness

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Post our initiating coverage report on 3M India Ltd., few investors had raised queries on the slow growth registered by the company over FY19-FY21E.

While there are obvious reasons for weakness - such as

  1. Slowdown in gross domestic product growth,

  2. Covid-19 led lockdown and

  3. Slowdown in the auto sector.

We would like to draw investor attention towards long-term value creation by the company.

3M India reported revenue and profit after tax compound annual growth rates of 19% and 22% respectively over the long period of FY1995-FY2020 maintaining return on equity greater than cost of capital.

Click on the attachment to read the full report:

ICICI Securities 3M Company Update.pdf

DISCLAIMER

This 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.

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