LG Electronics
LG Electronics
Consumer GoodsKey Fundamentals
LargecapHousehold AppliancesConsumer GoodsTapetide Score
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Key Insights
Strengths
2- Company is almost debt free.
- Company has a good return on equity (ROE) track record: 3 Years ROE 34.2%
Weaknesses
3- Stock is trading at 14.5 times its book value
- Though the company is reporting repeated profits, it is not paying out dividend
- The company has delivered a poor sales growth of 10.3% over past five years.
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 2d agoLG Electronics India Ltd trades at a market cap of ~₹1,11,828 Cr with a PE of 61.4x and a price-to-book of 14.6x. The company carries virtually no debt and has delivered a 3-year ROE of 34%, but TTM profit growth has turned negative at -10% while sales growth remains modest at 6% TTM. The stock pays no dividend despite consistent profitability.
- The company is almost debt-free, giving it a clean balance sheet with negligible financial risk and full flexibility to reinvest in growth or weather downturns
- 3-year average ROE of 34.2% is exceptionally high for a consumer goods company, indicating efficient capital deployment and strong underlying profitability
- 5-year average ROE of 30% demonstrates that high return on equity is not a one-off but a sustained trend over a meaningful period
- Compounded sales CAGR of 10% over 5 years shows the company has been able to grow its topline at a reasonable pace in a competitive consumer durables market
- 3-year compounded profit CAGR of 8% indicates that the company has been able to translate revenue growth into earnings growth over a medium-term horizon
- As a subsidiary of a global electronics major, LG Electronics India benefits from parent-company R&D, brand equity, and supply-chain scale that are difficult for domestic competitors to replicate
- India's under-penetrated consumer durables market — particularly in categories like air conditioners, refrigerators, and washing machines — provides a long structural growth runway
- PE ratio of 61.4x is steep for a consumer goods company, leaving little margin of safety if earnings growth does not accelerate meaningfully from current levels
- TTM profit growth has turned negative at -10%, suggesting margin compression or rising costs that are eating into profitability despite continued revenue growth
- The stock trades at 14.6x book value, which is expensive and implies the market is pricing in substantial future growth that may or may not materialize
- Despite reporting consistent profits, the company pays zero dividend (0% yield), meaning shareholders receive no income return and are entirely dependent on capital appreciation
- 5-year compounded sales CAGR of just 10.3% is relatively modest for a company commanding such a premium valuation, raising questions about the growth-to-valuation mismatch
- Last year ROE declined to 25% from the 3-year average of 34%, indicating a possible downward trend in capital efficiency that investors should monitor
- As a listed subsidiary of a foreign parent, minority shareholders have limited influence over capital allocation, dividend policy, and related-party transactions
- TTM sales growth has further decelerated to 6% from the 5-year CAGR of 10%, pointing to a slowing growth trajectory in recent quarters
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 3h ago- Stock fell 3% on profit booking Aug 18
Shares dropped nearly 3% to ₹1,676.95 after hitting a fresh 52-week high of ₹1,755.55, indicating profit booking despite strong Q1 results.
- Senior manager resignation Sep 3
Yoojae Kim resigned as Senior Management Personnel effective August 12, 2026, and has moved back to Korea.
- Q1 net profit surges 27% YoY Aug 20
Net profit rose 27.2% YoY to ₹652.8 crore on 15.5% revenue growth to ₹7,233.3 crore; EBITDA margin expanded 110 bps to 12.5%, beating estimates of 11.8%.
- Home entertainment leads with 22% growth Sep 1
Home entertainment grew 22% YoY with margins expanding 340 bps to 19.1%; TVs above 55 inches grew 53% and now contribute 50% of TV segment revenue.
- Exports up 30%, Sri City ramp Aug 18
Exports grew 30% YoY to 61+ countries; ₹5,000 crore Sri City factory begins operations by December 2026 as a dedicated export hub targeting 22 countries for Essential series.
- Motilal Oswal upgrades target to ₹2,000 Aug 18
Motilal Oswal issued a buy rating with target price revised upward from ₹1,800 to ₹2,000, increasing EPS estimates by ~7%/10% for FY27/FY28.
- Low appliance penetration runway Aug 18
Refrigerator penetration at 30%, washing machines at 20%, and ACs at 10% in India indicate substantial headroom; expected GST rate cuts on ACs and larger TVs could boost demand further.
- 10 awards at DIGIT India 2026 Aug 18
LG Electronics India secured 10 product wins at DIGIT India Top Appliance Awards 2026 across AC, TV, and home appliance categories.
- B2B push targets 45% of sales Sep 1
LG operates 52 Business Innovation Centers across 42 countries and targets raising B2B share to 45% of total sales by 2030; Media Solution division swung to ₹3,630 crore operating profit in H1.
- Investor meets in London, Hong Kong Sep 8
LG Electronics India scheduled investor meetings from September 15-23 organized by HSBC, CITIC CLSA, and Bank of America; no UPSI to be shared.
- 29th AGM held, routine approvals Aug 21
Shareholders approved FY26 audited financials and reappointed key directors and auditors at the 29th annual general meeting on August 21, 2026.
- NVIDIA robotics partnership deepens Aug 18
LG and NVIDIA are collaborating at LG's new Data Factory in Seoul, leveraging manufacturing data with NVIDIA's AI stack to build a data flywheel for robot learning.
- Cash balance at ₹57 billion Aug 20
Cash balance stands at ₹57.07 billion, earmarked to fund Sri City capex and ongoing expansion initiatives.
TL;DR: LG Electronics India is executing well across the board — Q1 FY27 delivered 27% profit growth, margin expansion, and 30% export growth, with strong premiumisation driving the home entertainment segment. Key risks are limited to profit booking at elevated valuations (41x FY27E EPS) and minor management churn. The Sri City factory commissioning by December 2026 and India's low appliance penetration provide a long structural growth runway. The trend is clearly improving, with multiple brokerages turning more bullish and earnings estimates being revised upward.
Quarterly Results
| Particulars | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|
| Sales | 6,114 | 4,396 | 7,448 | 6,263 | 6,174 | 4,114 | 8,054 | 7,233 |
| Expenses | 5,357 | 4,055 | 6,400 | 5,547 | 5,626 | 3,918 | 7,108 | 6,329 |
| Operating Profit | 757 | 340 | 1,048 | 716 | 548 | 196 | 945 | 904 |
| OPM % | 12% | 8% | 14% | 11% | 9% | 4.8% | 12% | 12% |
| Other Income | 67 | 79 | 67 | 74 | 80 | 76 | 101 | 95 |
| Interest | 7 | 9 | 9 | 8 | 9 | 9 | 14 | 9 |
| Depreciation | 97 | 90 | 97 | 90 | 93 | 111 | 102 | 112 |
| PBT | 720 | 321 | 1,010 | 692 | 525 | 152 | 931 | 878 |
| Tax % | 26% | 27% | 25% | 26% | 26% | 41% | 26% | 26% |
| Net Profit | 536 | 233 | 755 | 513 | 389 | 90 | 693 | 653 |
| EPS in Rs | — | 3.44 | 11.12 | 7.56 | 5.74 | 1.32 | 10.21 | 9.62 |
Profit & Loss
| Particulars | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|
| Sales | 15,710 | 15,087 | 16,834 | 19,865 | 21,352 | 24,367 | 24,605 | 25,575 |
| Expenses | 13,241 | 12,732 | 15,124 | 17,963 | 19,123 | 21,252 | 22,192 | 22,982 |
| Operating Profit | 2,469 | 2,355 | 1,711 | 1,901 | 2,229 | 3,115 | 2,413 | 2,593 |
| OPM % | 16% | 16% | 10% | 10% | 10% | 13% | 10% | 10% |
| Other Income | 300 | 33 | 173 | 241 | 205 | 264 | 328 | 351 |
| Interest | 6 | 20 | 24 | 25 | 32 | 35 | 45 | 41 |
| Depreciation | 242 | 244 | 258 | 300 | 364 | 380 | 396 | 418 |
| PBT | 2,521 | 2,124 | 1,601 | 1,817 | 2,037 | 2,963 | 2,300 | 2,486 |
| Tax % | 26% | 28% | 27% | 26% | 26% | 26% | 27% | — |
| Net Profit | 1,854 | 1,529 | 1,175 | 1,345 | 1,511 | 2,203 | 1,685 | 1,825 |
| EPS in Rs | — | — | — | — | — | 32.46 | 24.83 | 26.89 |
| Div. Payout % | 0% | 87% | 193% | 185% | 138% | 0% | 0% | — |
Balance Sheet
| Particulars | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|
| Equity Capital | 113 | 113 | 113 | 113 | 113 | 679 | 679 |
| Reserves | 6,279 | 6,473 | 5,388 | 4,243 | 3,659 | 5,291 | 6,987 |
| Borrowings | 0 | 0 | 0 | 318 | 370 | 428 | 459 |
| Other Liabilities | 2,810 | 4,472 | 3,918 | 4,321 | 4,356 | 5,119 | 5,512 |
| Total Liabilities | 9,202 | 11,059 | 9,419 | 8,995 | 8,498 | 11,517 | 13,636 |
| Fixed Assets | 835 | 1,049 | 1,048 | 1,343 | 1,319 | 1,329 | 1,560 |
| CWIP | 85 | 34 | 103 | 25 | 24 | 75 | 458 |
| Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Assets | 8,282 | 9,976 | 8,269 | 7,628 | 7,155 | 10,113 | 11,618 |
| Total Assets | 9,202 | 11,059 | 9,419 | 8,995 | 8,498 | 11,517 | 13,636 |
Cash Flow
| Particulars | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|
| Operating | — | 2,043 | 598 | 1,871 | 1,665 | 1,654 | 1,721 |
| Investing | — | 30 | -73 | -274 | -20 | -29 | -859 |
| Financing | — | -1,373 | -2,326 | -2,561 | -2,185 | -106 | -127 |
| Net Cash Flow | — | 700 | -1,801 | -964 | -540 | 1,519 | 735 |
| Free Cash Flow | — | 1,868 | 328 | 1,357 | 1,425 | 1,319 | 549 |
| CFO/OP | — | 111 | 58 | 122 | 100 | 77 | 97 |
Ratios
| Particulars | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|
| Debtor Days | 12 | 26 | 30 | 28 | 31 | 35 | 42 |
| Inventory Days | 80 | 99 | 75 | 69 | 59 | 67 | 63 |
| Days Payable | 76 | 125 | 80 | 80 | 73 | 74 | 75 |
| Cash Conversion Cycle | 16 | 0 | 24 | 17 | 17 | 28 | 30 |
| Working Capital Days | 11 | -1 | 12 | 4 | 4 | 14 | 16 |
| ROCE % | — | 35% | 27% | 36% | 47% | 57% | 32% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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45 extracted metrics + investor summaries across FY20–FY26.
Documents
Frequently Asked Questions about LG Electronics
What does LG Electronics India Ltd do?
Where is LG Electronics India Ltd (LGEINDIA) listed?
Which sector does LG Electronics India Ltd belong to?
What is the market capitalisation of LG Electronics India Ltd?
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What is the 52-week high and low of LG Electronics India Ltd?
What is the Return on Equity (ROE) of LG Electronics India Ltd?
Company Information
Incorporated in 1997, LG Electronics India Limited is a manufacturer and distributor of home appliances and consumer electronics.[1]LG Corporation, formerly known as Lucky-Goldstar, is a South Korean multinational conglomerate founded by Koo In-hwoi in 1947 and managed by successive generations of his family. It is the fourth-largest company in South Korea.
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