Rs 31,600 stock in bull run; brokerage decodes FY25 report, sets 15% upside target
The 3M India stock is in bull run, having rallying 22 per cent from its 52-week low of Rs 25,714.35 hit in March this year. Still, the stock is down 10.82 per cent for the one-year period.
- Sep 9, 2025,
- Updated Sep 9, 2025 12:14 PM IST
ICICI Securities has maintained a positive outlook on 3M India after reviewing its FY25 annual report. The brokerage is encouraged by the company's focus on local manufacturing, which has seen revenues from this segment grow from 52.9 per cent in FY14 to 59.4 per cent in FY25. This strategic shift has substantially contributed to the company's Ebitda margin expansion over the years, ICICI Securities said.
The 3M India stock is in bull run, having rallying 22 per cent from its 52-week low of Rs 25,714.35 hit in March this year. Still, the stock is down 10.82 per cent for the one-year period. The scrip, which settled at Rs 30,536.35 apiece on Monday, climbed to Rs 31,580 level today.
Distribution expansion has also been a key area of growth for 3M India, with the number of distributors increasing from 1,005 in FY23 to 1,123 in FY25. Despite this expansion, the revenue share of dealers remained stable at approximately 53 per cent over FY23-25. ICICI Securities underscores the importance of this growth in driving the B2C business and enhancing market penetration.
The company's investment in digital platforms is notable, with 3M products now available in 100 cities through Q-commerce. This move is seen as a strategic effort to strengthen the company's e-commerce presence and reach a broader customer base.
Notably, royalty and corporate management fees stood at 4.8 per cent of net sales in FY25, a decrease from 6.2 per cent in FY19. ICICI Securities acknowledges that these fees may rise in the future as domestic manufacturing increases. The reduction in these fees reflects improved cost efficiencies within the company.
3M India continues to innovate, with a steady stream of product launches anticipated, including new offerings for India's growing EV segment. This commitment to innovation is seen as a driver for long-term growth, particularly in emerging markets.
ICICI Securities has maintained a 'Buy' rating on 3M India, with a DCF-based target price of Rs 35,610, indicating confidence in the company's strategic direction.
While 3M India has shown resilience and adaptability through its local manufacturing initiatives and distribution network expansion, it also faces challenges such as potential increases in royalty fees. However, these are viewed as manageable within the broader growth strategy.
With a forward P/E ratio of 56 times for FY27E EPS, 3M India is positioned as a strong player in the market. The company's continuous adaptation to market demands and strategic investments in various sectors provide a robust foundation for future performance.
ICICI Securities has maintained a positive outlook on 3M India after reviewing its FY25 annual report. The brokerage is encouraged by the company's focus on local manufacturing, which has seen revenues from this segment grow from 52.9 per cent in FY14 to 59.4 per cent in FY25. This strategic shift has substantially contributed to the company's Ebitda margin expansion over the years, ICICI Securities said.
The 3M India stock is in bull run, having rallying 22 per cent from its 52-week low of Rs 25,714.35 hit in March this year. Still, the stock is down 10.82 per cent for the one-year period. The scrip, which settled at Rs 30,536.35 apiece on Monday, climbed to Rs 31,580 level today.
Distribution expansion has also been a key area of growth for 3M India, with the number of distributors increasing from 1,005 in FY23 to 1,123 in FY25. Despite this expansion, the revenue share of dealers remained stable at approximately 53 per cent over FY23-25. ICICI Securities underscores the importance of this growth in driving the B2C business and enhancing market penetration.
The company's investment in digital platforms is notable, with 3M products now available in 100 cities through Q-commerce. This move is seen as a strategic effort to strengthen the company's e-commerce presence and reach a broader customer base.
Notably, royalty and corporate management fees stood at 4.8 per cent of net sales in FY25, a decrease from 6.2 per cent in FY19. ICICI Securities acknowledges that these fees may rise in the future as domestic manufacturing increases. The reduction in these fees reflects improved cost efficiencies within the company.
3M India continues to innovate, with a steady stream of product launches anticipated, including new offerings for India's growing EV segment. This commitment to innovation is seen as a driver for long-term growth, particularly in emerging markets.
ICICI Securities has maintained a 'Buy' rating on 3M India, with a DCF-based target price of Rs 35,610, indicating confidence in the company's strategic direction.
While 3M India has shown resilience and adaptability through its local manufacturing initiatives and distribution network expansion, it also faces challenges such as potential increases in royalty fees. However, these are viewed as manageable within the broader growth strategy.
With a forward P/E ratio of 56 times for FY27E EPS, 3M India is positioned as a strong player in the market. The company's continuous adaptation to market demands and strategic investments in various sectors provide a robust foundation for future performance.