LG Electronics India Ltd
LG Electronics India Ltd
Consumer DiscretionaryIncorporated 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.
LG Electronics India is a debt-free company with strong ROE of 25-34% over 3 years, but the stock trades at a steep PE of 64.7x and PB of 14.23x with declining TTM profits (-23%). The overwhelmingly positive analyst consensus (89% buy) is offset by rich valuations and zero dividend payout, warranting a cautious stance for new entrants.
Key Fundamentals
MidcapHousehold AppliancesConsumer GoodsTechnical Indicators
Key Insights
Strengths
2- Company is almost debt free.
- Company has a good return on equity (ROE) track record: 3 Years ROE 34.3%
Weaknesses
3- Stock is trading at 13.9 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 3d agoLG Electronics India is a debt-free company with strong ROE of 25-34% over 3 years, but the stock trades at a steep PE of 64.7x and PB of 14.23x with declining TTM profits (-23%). The overwhelmingly positive analyst consensus (89% buy) is offset by rich valuations and zero dividend payout, warranting a cautious stance for new entrants.
- Company is virtually debt-free, providing significant financial flexibility and resilience during economic downturns with a debt-to-equity ratio near zero
- Exceptional 3-year ROE of 34% demonstrates highly efficient capital allocation and strong profitability relative to shareholder equity
- Overwhelming analyst consensus with 88.89% buy ratings (24 out of 27 analysts) signals strong institutional conviction in the business
- 5-year compounded sales CAGR of 10% indicates steady top-line expansion in a competitive consumer discretionary market
- Last year ROE of 25% remains well above industry average, showing continued ability to generate superior returns on equity
- Large market cap of Rs 108,970 Cr provides liquidity, index inclusion potential, and institutional investor comfort
- 3-year compounded profit growth of 8% shows the business has been able to grow earnings over the medium term despite near-term headwinds
- PE ratio of 64.7x is extremely elevated for a consumer durables company, leaving minimal margin of safety for investors
- TTM profit growth of -23% signals significant near-term earnings deterioration despite revenue stability
- Price-to-book ratio of 14.23x means the stock trades at over 14 times book value, reflecting excessive premium to tangible assets
- Zero dividend yield despite repeated profitability indicates no direct shareholder returns, with all capital retained without commensurate growth acceleration
- 5-year compounded profit CAGR of only 2% reveals that earnings growth has significantly lagged sales growth of 10%, indicating margin compression
- TTM sales growth of just 1% suggests revenue momentum has stalled sharply compared to the 5-year average of 10%
- 5-year sales CAGR of 10.3% is characterized as poor growth for the consumer discretionary sector where peers often deliver 15-20% top-line expansion
- Only 1 year of listed trading history with no 52-week high/low data available limits technical and historical valuation benchmarks for investors
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 14h ago- INR 8.23 crore tax penalty Jun 20
Received penalty order of INR 8,23,53,445 for FY 2013-14. Company plans to appeal against the order.
- Rs 116.72 crore GST notice May 27
Show Cause Notice from GST authorities demanding Rs 116.72 crore for FY 2021-22. Company denies the claim and plans to file a reply.
- FTSE index addition of $66M Jun 19
LG Electronics set to see $66M (Rs 6.23B) addition via FTSE index rebalancing, boosting index-linked fund flows and institutional participation.
- AI Home ecosystem roadmap Jun 12
LG outlined vision for AI Home ecosystem powered by Affectionate Intelligence, including AI appliances, ThinQ AI orchestration, and autonomous robots.
- Trading window closed for Q1FY27 Jun 23
Trading window closed from July 1, 2026, until 48 hours after Q1FY27 results are declared, per SEBI regulations.
- Investor meets scheduled Jun 17-22 Jun 12
Analyst and institutional investor meetings held from June 17 to June 22, 2026, at Corporate Office in Noida.
TL;DR: LG Electronics India is gaining institutional visibility through FTSE index inclusion ($66M inflow) and is laying out a forward-looking AI Home strategy. However, the company faces cumulative tax and GST demands totaling ~Rs 125 crore across two separate orders, though both are being contested. The trend is mildly positive on the business strategy side, but regulatory and tax overhang remains a near-term watch item.
Quarterly Results
| Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|
| Sales | 6,114 | 4,396 | 7,448 | 6,263 | 6,174 | 4,114 | 8,054 |
| Expenses | 5,357 | 4,055 | 6,400 | 5,547 | 5,626 | 3,918 | 7,108 |
| Operating Profit | 757 | 340 | 1,048 | 716 | 548 | 196 | 945 |
| OPM % | 12% | 8% | 14% | 11% | 9% | 5% | 12% |
| Other Income | 67 | 79 | 67 | 74 | 80 | 76 | 101 |
| Interest | 7 | 9 | 9 | 8 | 9 | 9 | 14 |
| Depreciation | 97 | 90 | 97 | 90 | 93 | 111 | 102 |
| PBT | 720 | 321 | 1,010 | 692 | 525 | 152 | 931 |
| Tax % | 26% | 27% | 25% | 26% | 26% | 41% | 26% |
| Net Profit | 536 | 233 | 755 | 513 | 389 | 90 | 693 |
| EPS in Rs | — | 3.44 | 11.12 | 7.56 | 5.74 | 1.32 | 10.21 |
Profit & Loss
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|
| Sales | 15,710 | 15,087 | 16,834 | 19,865 | 21,352 | 24,367 | 24,605 |
| Expenses | 13,241 | 12,732 | 15,124 | 17,963 | 19,123 | 21,252 | 22,197 |
| Operating Profit | 2,469 | 2,355 | 1,711 | 1,901 | 2,229 | 3,115 | 2,408 |
| OPM % | 16% | 16% | 10% | 10% | 10% | 13% | 10% |
| Other Income | 300 | 33 | 173 | 241 | 205 | 264 | 328 |
| Interest | 6 | 20 | 24 | 25 | 32 | 35 | 41 |
| Depreciation | 242 | 244 | 258 | 300 | 364 | 380 | 396 |
| PBT | 2,521 | 2,124 | 1,601 | 1,817 | 2,037 | 2,963 | 2,300 |
| Tax % | 26% | 28% | 27% | 26% | 26% | 26% | 27% |
| Net Profit | 1,854 | 1,529 | 1,175 | 1,345 | 1,511 | 2,203 | 1,685 |
| EPS in Rs | — | — | — | — | — | 32.46 | 24.83 |
| Div. Payout % | 0% | 87% | 193% | 185% | 138% | 0% | 0% |
Balance Sheet
| 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 | 1,561 |
| CWIP | 85 | 34 | 103 | 25 | 24 | 75 | 457 |
| 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
| 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 | -856 |
| Financing | — | -1,373 | -2,326 | -2,561 | -2,185 | -106 | -127 |
| Net Cash Flow | — | 700 | -1,801 | -964 | -540 | 1,519 | 737 |
| Free Cash Flow | — | 1,868 | 328 | 1,357 | 1,425 | 1,319 | 549 |
| CFO/OP | — | 111 | 58 | 122 | 100 | 77 | 97 |
Ratios
| 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% |
Documents
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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.