3M India shares soar 20%, breach ICICI Sec's revised price target within hours

Shares of 3M India Ltd surged 20 per cent in Tuesday’s trade, surpassing ICICI Securities’ freshly revised target price within hours. The stock climbed 19.50 per cent to hit a high of Rs 36,666, within minutes into trading, as the company reported strong Q2 performance across segments, with highest-ever quarterly gross and Ebitda margins. 
Following its earnings, ICICI Securities had upped its target on 3M India to Rs 35,700 from Rs 35,610, valuing the stock at 49 times FY28 earnings. 

"3M India delivered a stellar Q2FY26 performance with revenue growth of 14 per cent YoY, led by broad-based growth across all four verticals," ICICI Securities said.

Among key Q2 takeaways, 3M India reported highest-ever gross and Ebitda margins, led by improved product mix. Its safety & industrials segment reported strong EBIT growth of 95.5 per cent YoY, led by improved product mix and low base. 

"We believe the quarter marks a strong inflection point as cyclical tailwinds in autos, GST-related benefits and government-led infrastructure could help the company sustain growth momentum in H2FY26 as well. Favourable base of H2FY25 will also aid," ICICI Securities said.

The brokerage has raised its FY26 and FY27 earnings estimates by 4.1 per cent/2.2 per cent to factor in Q2FY26 results, potential auto demand recovery and increase in government-led infrastructure spending. 

3M India remained focused on launching new SKUs, improving product mix and leveraging manufacturing scale. Demand from auto, infra and industrial safety verticals is expected to remain strong, supported by macro indicators. 

"Healthcare and consumer segments are likely to maintain double-digit growth driven by festive demand and institutional tailwinds. We believe 3M India is well placed to sustain healthy topline growth with margin improvement, aided by favourable mix and stable raw material prices," ICICI Securities said.

It expects 3M India to report revenue and PAT CAGR of 11.6 per cent and 19.8 per cent over FY25-28E and see RoE greater than cost of capital. 

"At our DCF-based revised target price of Rs 35,700 (earlier INR 35,610), implied P/E works out to 49 times FY28E EPS," it said.