Fundamental View as on 27-Jul-17:
3M India Ltd., incorporated in the year 1987, is a Large Cap company (having a market cap of ₹ 14905 Cr.) operating in Miscellaneous sector.
3M India Ltd. key Products/Revenue Segments include Finished Goods which contributed ₹ 1261.78 Cr to Sales Value (51.33 % of Total Sales), Traded Goods which contributed ₹ 1168.33 Cr to Sales Value (47.53 % of Total Sales), Sale of services which contributed ₹ 26.86 Cr to Sales Value (1.09 % of Total Sales), Scrap which contributed ₹ .56 Cr to Sales Value (0.02 % of Total Sales), Duty Drawback which contributed ₹ .32 Cr to Sales Value (0.01 % of Total Sales)for the year ending 31-Mar-2017.
For the quarter ended 31-03-2017, the company has reported a Standalone sales of ₹ 623.91 Cr., up 8.32 from last quarter Sales of ₹ 575.99 Cr. and up 14.48 from last year same quarter Sales of ₹ 544.99 Cr. Company has reported net profit after tax of ₹ 90.39 Cr. in latest quarter.
Summary: Opportunities & Threats
3M’s globally competitive cost positions and well crated business strategies have enabled it to retain its leading market positions. Company strongly believes in the 3M™ brand equity and its ability to provide its customers with innovative solutions. The Company is operating in a highly competitive market which may exert pressure both on the top line as well as the bottom line of the Company. As the Company’s products involve expertise in product development, manufacturing and marketing, are subject to competition from products manufactured and sold by other technologically oriented companies both within India and outside India. In addition, Inflation, rupee depreciation, high commodity prices and hardening interest rates remain key challenges
Risks & Concerns
- Impact of increase in duties on the products of the Company & consequent increase in the cost of goods sold.
- Prices of inputs are expected to rise significantly. Whilst the Company continues to pursue cost reduction initiatives, increase in price of input materials and rupee depreciation could impact the Company’s profitability
- Fluctuations in exchange rates with reference to currencies in which the Company transacts.
COMPANY PROFILE OF 3M INDIA LTD, NSE, INDIA
3M India Limited is the Indian listed subsidiary of 3M Company, USA. The Company is a diversified technology and science company with global presence in the following businesses: Industrial; Health Care; Consumer; Safety, Graphics, and Energy and is one of the leading manufacturers of products for many of the markets it serves. The 3M technology solutions expertise has been tried and tested for performance, safety, value & productivity in markets that include Aerospace, Railways, Highways, Defence, Security, Mining, Health, Oil & Gas, Telecom and Marine in India and across the globe. They are having their manufacturing facilities at Bangalore, Ahmadabad, Pune and Pondicherry. The company operates in five business segments. Industrial business segment products include paper tapes, coated and non-woven abrasives, and speciality adhesives. Automotive and speciality materials markets provide a range of design and engineered solutions to automotive original equipment manufacturers and ancillary industries, and corrosion protection and glass bubbles solutions for oil and gas pipelines, and others. The healthcare segment offers products and services for skin and wound care, infection prevention, dental, orthodontic, drug delivery and food safety markets. Traffic and safety markets products include commercial graphics systems, reflective sheeting for transportation safety, optical films, solutions for electronic displays and passport readers. Consumer and office markets brands include Scotch, Scotch-Brite, Nomad and Post-it.