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Need a long-term review for 3MINDIA

Discussion in 'Fundamental Analysis' started by amolfrmprec, May 29, 2020.

  1. amolfrmprec

    amolfrmprec New Member

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    3M India:
    • Almost zero Debt
    • Excellent EPS Growth
    • Good Return on Equity
    • Concerns - overvalued and a very high PE compared to Industry
    Personally, I have always liked their product quality. I also interested due to the fact that they also have lot of healthcare products which are very relevant in this situation.

    Any reviews/comments are appreciated.
     
    amolfrmprec, May 29, 2020
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  2. shabbir

    shabbir Administrator Staff Member

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    When you look at the valuations, you will never be able to invest in these companies. You have to invest the money in them and forget it. At times, be a foolish investor and invest for the decade. When you know the company's products and like them, it is never too expensive to invest. This is what I wrote in this article on overvaluation argument of Pidilite https://shabbir.in/is-pidilite-overvalued/

    So go ahead and invest in the company and then forget it for 3 to 5 years. Assume you will not make anything in that time because you have paid the price right now. Plan to make money after that time. If you make any profits in 3 to 5 years, consider that as bonus.

    BTW this is the only company I found which doesn't pay dividend (I mean cash generating and still not paying dividend). So it means company is re-investing a lot back in the business. Kinda like Berkshire Hathway that doesn't pay dividend as well.
     
    shabbir, May 30, 2020
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