3M India Limited is a technology company.

The Company's segments include Industrial segment, which

offers tapes, adhesives, advanced ceramics, sealants, specialty materials, closure systems for personal
hygiene products, as well as offers Scotch Masking Tape, Scotch Filament Tape and Scotch Packaging Tape;
packaging equipment, and 3M VHB Bonding Tapes; Health Care segment, which offers medical and surgical
supplies, medical devices, skin and wound care and infection prevention products and solutions and drug
delivery systems; Safety and Graphics segment, which offers personal protection products and security
products, among others; Consumer segment, which offers office supply products, stationery products and
home care products in brands, such as Post-it, Scotch-Brite and Nexcare, and Energy segment offers 3M
Scotchkote Fusion Bonded Epoxy powders. The Company also supports solar and wind energy projects
through product solutions, such as films, tapes, coatings and adhesives.
For financial year ending on 31 Mar 2014, 3M INDIA LTD has reported
1 Sales Growth : 10.69%
2 Profit Reduced : -17.75%
3 Margin Declined : -0.85%
4 Borrowings Reduced : -30.38%
5 Share Price Increased : 7.00%

For financial year ending on 31 Mar 2015, 3M INDIA LTD has reported
1 Sales Growth : 5.62%
2 Profit Increased : 152.01%
3 Margin Improved : 3.42%
4 Borrowings Reduced : -88.17%
5 Share Price Increased : 128.46%

For financial year ending on 31 Mar 2016, 3M INDIA LTD has reported
1 Sales Growth : 14.27%
2 Profit Increased : 85.46%
3 Margin Improved : 3.67%
4 Borrowings Reduced : -22.01%
5 Share Price Increased : 46.84%

For financial year ending on Mar-17 E, 3M INDIA LTD is expected to report

1 Sales Growth : 10.15%
2 Profit Reduced : -1.69%
3 Margin Declined : -1.03%
4 Borrowings Reduced : -100.00%
5 Share Price Decreased : -18.00%
6 Estimated Share Price : INR 10238.25

For financial year ending on Mar-18 E, 3M INDIA LTD is expected to report

1 Sales Growth : 8.88%
2 Profit Increased : 12.36%
3 Margin Improved : 0.27%

4 Share Price Increased : 12.36%

6 Estimated Share Price : INR 11503.85

Below are some of the Financial Ratios for 3M INDIA LTD for financial year ending on 31 Mar 2016:
Net Income/Sales is 0.10
Net Income/Pre Tax Income is 0.65
Pre Tax Income/EBIT is 0.99
EBIT/Sales is 0.15
Sales/Assets is 1.49
Assets/Equity is 1.40

Return on Equity is 20%

Return on Assets is 14%
Retention Based Growth Rate is 20%

Market Capitalisation is INR 14065 crores

Add: Debt is INR 11 crores
Less: Non Current Investments is INR 0 crores
Enterprise Value is INR 14076 crores

Net Profit is INR 201 crores

Add: Interest is INR 3 crores
Less : Tax Savings on Interest is INR 1 crores
Less : Other Income is INR 17 crores
Firm Profits is INR 185 crores

Sales is INR 2103 crores

Add: Other Income is INR 17 crores
Total Income is INR 2120 crores

Firm Margin is 09%

Enterprise Value to Total Income is 6.64 (below 2 is better)

Enterprise Value to Total Income to Firm Margin is 75.92 (below 15 is investments friendly)

Price to Earning is 70.00 (below 18 is investments friendly)

Price to Book Value is 13.94 (below 2 is investments friendly)
Debt to Equity is 0.01 (below 2 is investments friendly)
Free Cash Flow to Firm is INR 15 crores
Free Cash Flow to Equity is INR 12 crores
Price to Earning Growth is 0.82
 What If Analysis
Company Name : 3M INDIA LTD
Sector : Diversified Innovator
Horizons Years : 5Yrs CMP: 11,044.35 Return: 34.68%
Date : 25/03/2017 Target: 14,874.50 Annualized Return: 6.14%
SENSITIVITY TABLE
Profit Growth ( Horizon Period CAGR in % )
4% 6% 7% 9% 12%
37 8,170 8,728 9,520 10,367 11,510
47 10,213 10,911 11,900 12,959 14,388
PE 58 12,766 13,638 14,875 16,199 17,985
73 15,958 17,048 18,593 20,249 22,481
91 19,947 21,310 23,241 25,311 28,102

STOCK BASED ESTIMATE

Title Trend Mar, 2016 Mar, 2017 Mar, 2018 Mar, 2019 Mar, 2020 Mar, 2021
Sales Growth 10.14 14.27 10.15 8.88 7.61 6.34 5.08
EBITDA Margin 11.56 17.09 15.36 15.36 15.36 15.36 15.36
Tax Rate 34.96 34.76 33.99 33.99 33.99 33.99 33.99
Dividend Payout - - - - - - -
Valuations
PE or 70.00 58.41 58.41 58.41 58.41 58.41
PB or 13.94 9.57 9.08 8.60 8.07 7.52
EV/EBITDA 39.16 32.05 32.58 33.18 33.52 33.64
EV/SALES 6.69 4.92 5.00 5.10 5.15 5.17
INCOME STATEMENT
Title Mar, 2016 Mar, 2017 Mar, 2018 Mar, 2019 Mar, 2020 Mar, 2021
Sales 2,102.98 2,316.45 2,522.19 2,714.20 2,886.40 3,032.89
Sales Growth (%) 14.27 10.15 8.88 7.61 6.34 5.08
EBITDA 359.47 355.70 387.29 416.78 443.22 465.71
EBITDA Growth (%) 164.75 - 1.05 8.88 7.61 6.34 5.08
Depreciation 48.89 53.85 51.04 43.20 36.56 30.94
EBIT 310.58 301.85 336.25 373.58 406.66 434.77
EBIT Growth (%) 184.22 - 2.81 11.40 11.10 8.85 6.91
Interest 2.59 2.59 - - - -
PBT 307.99 299.26 336.25 373.58 406.66 434.77
Tax 107.06 101.72 114.29 126.98 138.22 147.78
Tax Rate (%) 34.76 33.99 33.99 33.99 33.99 33.99
PAT 200.93 197.54 221.96 246.60 268.43 286.99
Minority Interest - - - - - -
NPAT 200.93 197.54 221.96 246.60 268.43 286.99
NPAT Growth (%) 46.08 - 1.69 12.36 11.10 8.85 6.91
BALANCE SHEET
Title Mar, 2016 Mar, 2017 Mar, 2018 Mar, 2019 Mar, 2020 Mar, 2021
Equity 1,008.65 1,206.19 1,428.15 1,674.74 1,943.18 2,230.17
Debt 11.16 - 137.07 - 345.07 - 573.87 - 823.86 - 1,094.80
Sources of Funds 1,019.81 1,069.12 1,083.07 1,100.87 1,119.32 1,135.38
Net Fixed Assets 350.40 332.12 281.07 237.87 201.32 170.38
Title Mar, 2016 Mar, 2017 Mar, 2018 Mar, 2019 Mar, 2020 Mar, 2021
Investments - - - - - -
Net Working Capital 669.41 737.00 802.00 863.00 918.00 965.00
Application of Funds 1,019.81 1,069.12 1,083.07 1,100.87 1,119.32 1,135.38
CASH FLOW ANALYSIS
Title Mar, 2016 Mar, 2017 Mar, 2018 Mar, 2019 Mar, 2020 Mar, 2021
NPAT 200.93 197.54 221.96 246.60 268.43 286.99
CHANGE IN WORKING CAPITAL - 236.43 - 67.59 - 65.00 - 61.00 - 55.00 - 47.00
Addition/ Deletion Fixed Assets - 10.24 - 35.57 - - - -
Depreciation 48.89 53.85 51.04 43.20 36.56 30.94
Interest 2.59 2.59 - - - -
TAX EFFECT 87.74 86.33 92.79 98.50 103.67 108.07
FREE CASH FLOW TO FIRM 93.48 237.15 300.79 327.30 353.66 379.00
REPAYMENT OF DEBT AND INT. 1.46 - - - - -
FREE CASH FLOW TO EQUITY 94.94 237.15 300.79 327.30 353.66 379.00
FREE CASH FLOW VALUATIONS
Title Mar, 2016 Mar, 2017 Mar, 2018 Mar, 2019 Mar, 2020 Mar, 2021
MARKET CAPITALISATION 14,064.60 11,538.47 12,964.80 14,404.11 15,679.59 16,763.56
DEBT 11.16 - - - - -
INVESTMENTS - 137.07 345.07 573.87 823.86 1,094.80
ENTERPRISE VALUE 14,075.76 11,401.39 12,619.73 13,830.24 14,855.72 15,668.77
ENTERPRISE VALUE TO FCFF 150.58 48.08 41.95 42.26 42.01 41.34
MARKET CAP. TO FCFE 148.14 48.65 43.10 44.01 44.34 44.23
RETURN ANALYSIS
Title Mar, 2016 Mar, 2017 Mar, 2018 Mar, 2019 Mar, 2020 Mar, 2021
INVESTMENT VALUE 10,000.00 8,203.91 9,218.04 10,241.40 11,148.27 11,918.98
TOTAL RETURN ON BASE -18% -8% 2% 11% 19%
RETURN ANNUALISED -18% -4% 1% 3% 4%
RATIOS (Based on Current Financials)
Title Mar, 2016 Mar, 2017 Mar, 2018 Mar, 2019 Mar, 2020 Mar, 2021
Solvency
Debt/Equity 0.01 - 0.11 - 0.24 - 0.34 - 0.42 - 0.49
Interest Coverage Ratio 119.92 116.54 #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Growth
Sales 14.27 10.15 8.88 7.61 6.34 5.08
EBITDA 164.75 - 1.05 8.88 7.61 6.34 5.08
EBIT 184.22 - 2.81 11.40 11.10 8.85 6.91
NPAT 46.08 - 1.69 12.36 11.10 8.85 6.91
Efficiency
ROCE 19.87 18.64 20.49 22.40 23.98 25.28
ROE 19.92 16.38 15.54 14.72 13.81 12.87
Valuations
PE 70.00 71.20 63.37 57.03 52.39 49.01
PB 13.94 11.66 9.85 8.40 7.24 6.31
EV/EBITDA 39.16 39.57 36.34 33.77 31.76 30.22
EV/SALES 6.69 6.08 5.58 5.19 4.88 4.64
Dividend Yield - - - - - -
 3M INDIA LTD
Estimates
Particulars Dec-06 Dec-07 Dec-08 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 E Mar-18 E Mar-19 E Mar-20 E Mar-21 E
Depreciation 6.46 5.89 7.23 16.95 17.36 27.03 36.30 47.60 49.60 48.89 53.85 51.04 43.20 36.56 30.94
Pre Tax Income 77.97 106.63 91.03 140.87 148.06 96.11 75.20 69.07 164.57 307.99 299.26 336.25 373.58 406.66 434.77
EBIT 78.25 106.97 91.50 141.43 149.86 100.11 85.44 83.82 168.59 310.58 301.85 336.25 373.58 406.66 434.77
Net Income 50.42 67.68 57.46 92.84 98.80 64.77 52.27 42.99 108.34 200.93 197.54 221.96 246.60 268.43 286.99
Dividend Outflow - - - - - - - - - - - - - - -
Sales 505.75 610.56 742.47 1,086.86 1,191.41 1,405.10 1,574.13 1,742.34 1,840.30 2,102.98 2,316.45 2,522.19 2,714.20 2,886.40 3,032.89
Total Asset 314.68 400.00 480.03 614.43 757.94 932.51 1,073.73 1,106.68 1,145.20 1,412.88 1,671.10 1,978.60 2,320.25 2,692.15 3,089.76
Fixed Asset 44.32 97.42 143.32 181.02 259.52 310.67 420.40 425.30 389.05 350.40 332.12 281.07 237.87 201.32 170.38
Debt - - - - 12.14 75.93 173.72 120.94 14.31 11.16 - - - - -
Equity 223.83 290.31 347.76 440.60 539.40 604.17 656.44 699.43 807.72 1,008.65 1,206.19 1,428.15 1,674.74 1,943.18 2,230.17

Net Income/Sales 0.10 0.11 0.08 0.09 0.08 0.05 0.03 0.02 0.06 0.10 0.09 0.09 0.09 0.09 0.09
Net Income/Pre Tax Income 0.65 0.63 0.63 0.66 0.67 0.67 0.70 0.62 0.66 0.65 0.66 0.66 0.66 0.66 0.66
Pre Tax Income/EBIT 1.00 1.00 0.99 1.00 0.99 0.96 0.88 0.82 0.98 0.99 0.99 1.00 1.00 1.00 1.00
EBIT/Sales 0.15 0.18 0.12 0.13 0.13 0.07 0.05 0.05 0.09 0.15 0.13 0.13 0.14 0.14 0.14
Sales/Assets 1.61 1.53 1.55 1.77 1.57 1.51 1.47 1.57 1.61 1.49 1.39 1.27 1.17 1.07 0.98
Assets/Equity 1.41 1.38 1.38 1.39 1.41 1.54 1.64 1.58 1.42 1.40 1.39 1.39 1.39 1.39 1.39

Return on Equity 22.5% 23.3% 16.5% 21.1% 18.3% 10.7% 8.0% 6.1% 13.4% 19.9% 16.4% 15.5% 14.7% 13.8% 12.9%
Return on Assets 16.0% 16.9% 12.0% 15.1% 13.0% 6.9% 4.9% 3.9% 9.5% 14.2% 11.8% 11.2% 10.6% 10.0% 9.3%
Retention Based Growth Rate 22.5% 23.3% 16.5% 21.1% 18.3% 10.7% 8.0% 6.1% 13.4% 19.9% 16.4% 15.5% 14.7% 13.8% 12.9%

Market Capitalisation 1,679 1,802 2,109 2,609 4,191 4,685 3,918 4,193 9,578 14,065 11,538 12,965 14,404 15,680 16,764
Add: Debt - - - - 12 76 174 121 14 11 - - - - -
Less: Non Current Investments - - - - - - - - - - 137 345 574 824 1,095
Enterprise Value 1,679 1,802 2,109 2,609 4,203 4,761 4,092 4,314 9,593 14,076 11,401 12,620 13,830 14,856 15,669

Net Profit 50.42 67.68 57.46 92.84 98.80 64.77 52.27 42.99 108.34 200.93 197.54 221.96 246.60 268.43 286.99
Add: Interest 0.28 0.34 0.47 0.56 1.80 4.00 10.24 14.75 4.02 2.59 2.59 - - - -
Less : Tax Savings on Interest 0.10 0.12 0.17 0.19 0.60 1.30 3.12 5.57 1.37 0.90 0.88 - - - -
Less : Other Income 4.82 8.50 10.59 19.93 11.00 5.26 10.50 19.94 14.48 17.22 16.74 18.64 20.71 22.55 24.11
Firm Profits 45.78 59.40 47.17 73.28 89.00 62.21 48.89 32.23 96.51 185.40 182.51 203.31 225.89 245.89 262.89

Sales 505.75 610.56 742.47 1,086.86 1,191.41 1,405.10 1,574.13 1,742.34 1,840.30 2,102.98 2,316.45 2,522.19 2,714.20 2,886.40 3,032.89
Add: Other Income 4.82 8.50 10.59 19.93 11.00 5.26 10.50 19.94 14.48 17.22 16.74 18.64 20.71 22.55 24.11
Total Income 510.57 619.06 753.06 1,106.79 1,202.41 1,410.36 1,584.63 1,762.28 1,854.78 2,120.20 2,333.18 2,540.83 2,734.92 2,908.95 3,057.00

1 Year
Firm Margin 9% 10% 6% 7% 7% 4% 3% 2% 5% 9% 8% 8% 8% 8% 9%
Enterprise Value to Total
3.29 2.91 2.80 2.36 3.50 3.38 2.58 2.45 5.17 6.64 4.89 4.97 5.06 5.11 5.13
Income
Enterprise Value to Total
36.66 30.35 44.71 35.60 47.23 76.54 83.71 133.83 99.40 75.92 62.47 62.07 61.23 60.42 59.60
Income to Firm Margin

3 Years
Firm Margin 8% 7% 7% 6% 5% 3% 3% 5% 7% 8% 8% 8% 8%
Enterprise Value to Total
2.97 2.63 2.91 3.11 3.11 2.77 3.46 4.88 5.56 5.45 4.97 5.05 5.10
Income
Enterprise Value to Total
36.69 36.25 42.59 51.55 65.25 91.87 101.33 89.08 75.51 66.69 61.88 61.19 60.37
Income to Firm Margin

Price to Earning 33.29 26.63 36.70 28.10 42.42 72.33 74.97 97.53 88.41 70.00 58.41 58.41 58.41 58.41 58.41
Price to Book Value 7.50 6.21 6.06 5.92 7.77 7.75 5.97 5.99 11.86 13.94 9.57 9.08 8.60 8.07 7.52
 3M INDIA LTD
Estimates
Particulars Dec-06 Dec-07 Dec-08 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 E Mar-18 E Mar-19 E Mar-20 E Mar-21 E
Debt to Equity - - - - 0.02 0.13 0.26 0.17 0.02 0.01 - - - - -
Free Cash Flow to Firm 60.41 53.44 55.02 84.92 17.09 55.36 114.46 122.68 15.08 922.51 273.00 289.80 304.99 317.93
Free Cash Flow to Equity 60.07 52.97 54.46 83.12 13.09 45.12 99.71 118.66 12.49 919.92 273.00 289.80 304.99 317.93
Price to Earning Growth 0.78 -2.43 0.46 6.61 -2.10 -3.88 -5.49 0.58 0.82 -34.61 4.73 5.26 6.60 8.45

SALES GROWTH
- 1 YEARS 21% 22% 46% 10% 18% 12% 11% 6% 14% 10% 9% 8% 6% 5%
- 3 YEARS 14% 21% 17% 9% 10% 7% 5% 6% 8% 6% 5% 5% 4%
- 5 YEARS 19% 18% 16% 10% 9% 8% 8% 8% 8% 7% 6%
- 10 YEARS 15% 14% 13% 10% 9% 8%

PROFIT GROWTH
- 1 YEARS 34% -15% 62% 6% -34% -19% -18% 152% 85% -2% 12% 11% 9% 7%
- 3 YEARS 4% 11% 20% -11% -19% -13% 28% 67% 22% 3% 8% 7% 5%
- 5 YEARS 14% -1% -2% -14% 2% 25% 30% 39% 18% 6% 8%
- 10 YEARS 15% 11% 14% 10% 11% 16%

Justified Price to Earning Ratio 58 58 58 58 58

 3M INDIA LTD
S. No. Particulars Chart Dec-06 Dec-07 Dec-08 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 E Mar-18 E Mar-19 E Mar-20 E Mar-21 E

1 Price 1490 1600 1872 2316 3720 4159 3478 3722 8503 12485 10238 11504 12781 13913 14875

2 Return on Equity 23% 23% 17% 21% 18% 11% 8% 6% 13% 20% 16% 16% 15% 14% 13%

3 Return on Assets 16% 17% 12% 15% 13% 7% 5% 4% 9% 14% 12% 11% 11% 10% 9%

Retention Based Growth

4 23% 23% 17% 21% 18% 11% 8% 6% 13% 20% 16% 16% 15% 14% 13%
Rate

5 Firm Margin 9% 10% 6% 7% 7% 4% 3% 2% 5% 9% 8% 8% 8% 8% 9%

Enterprise Value to Total

6 3.3 2.9 2.8 2.4 3.5 3.4 2.6 2.4 5.2 6.6 4.9 5.0 5.1 5.1 5.1
Income

Enterprise Value to Total

7 36.7 30.3 44.7 35.6 47.2 76.5 83.7 133.8 99.4 75.9 62.5 62.1 61.2 60.4 59.6
Income to Firm Margin

8 Price to Earning 33.3 26.6 36.7 28.1 42.4 72.3 75.0 97.5 88.4 70.0 58.4 58.4 58.4 58.4 58.4

9 Price to Book Value 7.5 6.2 6.1 5.9 7.8 7.8 6.0 6.0 11.9 13.9 9.6 9.1 8.6 8.1 7.5

10 Debt to Equity 0.0 0.0 0.0 0.0 0.0 0.1 0.3 0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0
 3M INDIA LTD
Title Mar-17 E Mar-18 E Mar-19 E Mar-20 E Mar-21 E
PBT 299.26 336.25 373.58 406.66 434.77
Interest 2.59 - - - -
Depreciation 53.85 51.04 43.20 36.56 30.94
Cash Flow Before Tax 355.70 387.29 416.78 443.22 465.71
Tax Rate 33.99 33.99 33.99 33.99 33.99
Cash Flow After Tax 234.80 255.65 275.11 292.57 307.42
Terminal Cash Flow 6,390.13
Total Cash Flow 234.80 255.65 275.11 292.57 6,697.54
Present Value of Cash Flow 4,843.96
Debt -
Value of Equity 4,843.96
Fair Value Per Share 4,298.10

Equity 12,447
Debt 11

Beta 0.58 Take from Reuters

Risk Free Rate 7% Prevailing Yield in India
Market Risk Premium 6% Assuming 6.4% premium for Equity Investments

Interest Paid 3
Tax Benefit 1
Interest Net of Tax 2
Debt 11
Cost of Debt 15%

Cost of Equity 11%

Debt Weight 0.00

Equity Weight 1.00

WACC 11%

Cash Flow of Mar-21 E 307.42

Growth 5.4%
Present Value of Terminal Cashflow 6,390.13
 TECHNICAL ANALYSIS
3M INDIA LTD

WEEKLY MOVING AVERAGE

Signal 02-05-14 3MINDIA Price Rs. 3705|200 Weekly Moving Average (OHLC)3709.3|100 Weekly Moving Average (OHLC)3642
Breakout 09-05-14 3MINDIA Price Rs. 3800|200 Weekly Moving Average (OHLC)3714.95|100 Weekly Moving Average (OHLC)3644.5
Price at Break Out: 3800
Targets: 1 Year 7,600 2 Years 11,400 3 Years 19,000 5 Years 28,500 10 Years 38,000
Now 3MINDIA LTP - Rs. 11049|100 Weekly Moving Average (OHLC) = 11318.05/11709.3/10934.9/11285.85|200 Weekly Moving Average
(OHLC) = 8055.05/8350.1/7790.55/8051.9