3M India: Stock to Postit in a portfolio


#22

No hard feelings, so no place for any apology and thank you for the encouraging words, I wouldn’t be here if stocks are pure science.

Thank you for the explanation. This sure looks like a business one would want to hold for years provided it is available at a reasonable price. I will try to understand the business further.


(Zero Point Someone) #23

Hi Amit,

My 2 cents a growing company should invest profits in its own business and not distribute it as dividends.


(Amit Jain) #24

Its sales growth is 10% for almost a decade now. They do not appear to be wanting to increase sales any more aggressively. The management is probably focused on getting all the parameters right every year, and do not want to rock the boat.

It shows confidence of the management when they distribute the free-cash, which is very hard to come-by for most others. Management would accumulate cash, if it perceived risk of reduced flow of cash in the near term, or increased working capital needs.


(Ranga Kiran) #26

Unaudited financial results (Standalone and Consolidated) for the quarter and nine months ended December 31, 2018


(Dhiraj Dave) #27

Conslidated sales and net profit growth of 16% and 17% respectively is moderate in my view. The standalone numbers are lower at around 14% sales growth and 11% net profit growth yoy.

On cost element, while by Cost of material consumed increased marginally, (with increased Indian production as represented by numbers) and Other expense increased, same was partially offset by major decline in Employee cost. (Not sure but may be due to Empolyee share benefit of 3M US, which may have lower impact due to lower price as on Dec 2018 quarter as compared with previous quarters).

While there is decline in other income, overall net profit growth of 20% on consolidated basis.

Find enclosed my working file on Q3FY19.
3M Q3FY19 results.xlsx (16.4 KB)


#28

Thanks for your tables! I could not understand the reasons for sharp contraction in employee costs yoy and is it sustainable? Is it due to discontinued ops? Key takeaways for me was 36% jump in operational EBIT ignoring noise from other income which will correct itself down the line.

Disc: In the watchlist for for sometime but no holding as of now