3M India jumps 3%, hits 52-week high on strong Q4 results

3M India Ltd

Shares of 3M India Ltd rallied 3 percent, hitting new 52-week highs in trade on June 1 post robust Q4 results. At 2:00 pm the 3M India Ltd stock was trading 2.61 percent higher at Rs 25,808 on NSE.

Quarterly net profit rose 24 percent year-on-year to Rs 136 crore, driven by strong demand in its transportation and electronics division.

Consolidated revenue from operations for 3M India rose by 13 percent YoY to Rs 1046 crore. The transportation and electronics business segment, responsible for power tools and cables, logged a revenue growth of nearly 27 percent, amounting to Rs 435 crore. Profit more than doubled in this segment. This particular segment contributes the most to the company's overall revenue and profit, accounting for approximately 42 percent of total revenue in the quarter.

Important developments in 3M India

3M India stated that it has approved discussions and negotiations regarding the manufacturing and distribution of healthcare products with its sister company, 3M Health Care, based in the United States. During the March quarter, the healthcare segment of the Bangalore-based company achieved robust revenue growth of 17.2 percent, while the safety and industrial business saw a growth of 2.7 percent.

Stock Performance

Following the announcement of the Q4 results, shares of 3M India reached a 15-month high, rising by as much as 3.5 percent. So far this year, the company's shares have increased by about 11 per cent, following a decline of 10.3 percent in 2022.

Whereas on a 5-year basis the 3M India stock has given a return of 33.42 percent. Thus, underperforming the benchmark Nifty50 index by a considerable margin. As the Nifty50 index has given a return of 73.23 percent over the same duration.

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