1. DIYTechnicalAnalysis is a private community of traders and investors interested in building wealth from Indian equity market. You can become a member with a one time registration fee of ₹199. Click here to become a member

Need a long-term review for 3MINDIA

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

  1. amolfrmprec

    amolfrmprec New Member

    Joined:
    Apr 5, 2020
    Messages:
    2
    Likes Received:
    2
    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
    Share #1
    shabbir and chaitanya_mella like this.
  2. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,703
    Likes Received:
    1,940
    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
    Share #2
    chaitanya_mella and amolfrmprec like this.