The 3M Empire: How Investors Seized 7300% Returns
₹1 lakh invested in 3M India in July 2002 would have yielded more than ₹70,00,000 in July 2022. This multibagger has yielded 7300% in returns. Here’s a closer look at the company.
Stock: 3M India Ltd.
🔍 About The Company
Headquartered in the USA, 3M India was listed on the BSE on February 18, 1991. The company handles a well-diversified business in sectors like transportation, safety & industrial supplies, healthcare and consumer. Fundamentally a science-based company, the majority of 3M’s creations involve technology, product development, manufacturing and marketing.
📈 Growth Factors
▪️ High Price to Earnings (P/E) Ratio: This indicates how much an investor is willing to pay for a share for every rupee of earnings. A general rule of thumb is that shares trading at a low P/E ratio are undervalued. 3M India has a PE ratio of 95.62, which is comparatively overvalued.
▪️ Robust Distribution Network: They have 5 own warehouses spread across its key markets. 3M products are sold through numerous distribution channels, including direct-to-user and through numerous e-commerce and traditional wholesalers, retailers, jobbers, distributors and dealers around the world.
▪️ Debt-free: The company has maintained a healthy balance sheet as it has kept its debt low and is virtually debt-free.
💼 Stock Value
The shares were trading at ₹300 as of August 2, 2002 and are currently trading at ₹22,922 (as of August 1, 2022).