3M India Limited
3M India Limited Fundamental Analysis
3M India Limited (3MINDIA.BO) shows moderate financial fundamentals with a PE ratio of 92.59, profit margin of 7.74%, and ROE of 21.72%. The company generates $48.9B in annual revenue with moderate year-over-year growth of 6.12%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 76.3/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze 3MINDIA.BO's fundamental strength across five key dimensions:
Efficiency Score
Excellent3MINDIA.BO demonstrates superior asset utilization.
Valuation Score
Moderate3MINDIA.BO shows balanced valuation metrics.
Growth Score
Moderate3MINDIA.BO shows steady but slowing expansion.
Financial Health Score
Excellent3MINDIA.BO maintains a strong and stable balance sheet.
Profitability Score
Moderate3MINDIA.BO maintains healthy but balanced margins.
Key Financial Metrics
Is 3MINDIA.BO Expensive or Cheap?
P/E Ratio
3MINDIA.BO trades at 92.59 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 3MINDIA.BO's PEG of -2.92 indicates potential undervaluation.
Price to Book
The market values 3M India Limited at 21.75 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 38.20 times EBITDA. This signals the market has high growth expectations.
How Well Does 3MINDIA.BO Make Money?
Net Profit Margin
For every $100 in sales, 3M India Limited keeps $7.74 as profit after all expenses.
Operating Margin
Core operations generate 18.31 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.72 in profit for every $100 of shareholder equity.
ROA
3M India Limited generates $14.23 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
3M India Limited generates limited operating cash flow of $2.82B, signaling weaker underlying cash strength.
Free Cash Flow
3M India Limited produces free cash flow of $2.66B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $236.20 in free cash annually.
FCF Yield
3MINDIA.BO converts 0.76% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
92.59
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.92
vs 25 benchmark
P/B Ratio
Price to book value ratio
21.75
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.17
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.28
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.22
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.51
vs 25 benchmark
How 3MINDIA.BO Stacks Against Its Sector Peers
| Metric | 3MINDIA.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 92.59 | 25.30 | Worse (Expensive) |
| ROE | 21.72% | 1305.00% | Weak |
| Net Margin | 7.74% | -43804.00% (disorted) | Weak |
| Debt/Equity | 0.06 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 2.28 | 10.42 | Strong Liquidity |
| ROA | 14.23% | -1543535.00% (disorted) | Strong |
3MINDIA.BO outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews 3M India Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
48.96%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
47.77%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
73.01%
Industry Style: Cyclical, Value, Infrastructure
High Growth