But this Diversified Sector Stock For Target Price Of Rs. 26,500: ICICI Securities

ICICI Securities has given a buy call for the company of a diversified sector in the latest report. The brokerage firm is highly bullish on 3M India Ltd and has given a buy call with a target price of Rs. 26,500.

As per the chart, it looks to be in a good position; in the past few weeks, the price has shown a strong momentum to the upside, and in the recent trading sessions, the price has been in consolidation, as per the latest report of ICICI securities the price of the stock has potential to gain more than 15% from the current market price.

Outlook of 3M India Ltd.

3M India is a subsidiary company of 3M Company, USA. The company was first incorporated in the year 1902 in the USA as a Mining company, and now 3M is one of the world's leading conglomerates companies with a presence in more than 70 countries. Safety & Industrial, Transportation & Electronics, Health Care, and Consumer are the four main segments in which the company operates its business operations. The company has production facilities in Ahmedabad, Bangalore, and Pune.

Outlook of 3M India Ltd stock

3M India is a large market cap company with a capitalization of over 25,778 Crores. The current market price of the stock is Rs. 22, 873. The stock's all-time high price is Rs. 27 800, and the all-time low is Rs. 17,273.
The latest report of ICICI Securities mentions the company is in a good position for robust growth from the current market price and can reach the target price of Rs. 26,500.

Buy Call of ICICI Securities On 3M India

'We remain positive on 3M India due to its competitive advantages such as: (1) strong brands, (2) established distribution network, and global relationships with large manufacturers, and (3) access to parent's technology pool. Maintain BUY with a DCF-based target price of Rs26,500' said ICICI Securities in the latest report.
To summarize the whole report in one line, ICICI said, 'Capacity expansion may reduce procurement dependence from parent' in the headline.

Highlights Of ICICI Report On 3M India

According to ICICI Securities report, '3M India's FY22 annual report highlights the following:
• The company is expanding its local manufacturing capacity for respirators, masks, hand sanitisers, etc.; it will also supply industry consumables to mobile phone manufacturing companies availing of the PLI schemes.
• 3M India is steadily investing in increasing its offline and online reach for Scotch Brite.
• It introduced four products in the automotive and consumer segments. We expect the launch of additional products in tandem with the normalisation of the economy.
• Royalty as a percentage of sales reduced from 5.3% in FY21 to 5.2% in FY22.'