Check Before You Invest : LG Electronics India Ltd

Snapshot

Q.1 Which industry/sub-sector does LG Electronics India Ltd belong to?

LG Electronics India Ltd belongs to the Consumer Durables sector, operating specifically within the Consumer Durables - Electronics segment.

Q.2 Is LG Electronics India Ltd a good quality company?

LG Electronics India Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is LG Electronics India Ltd undervalued or overvalued?

LG Electronics India Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is LG Electronics India Ltd a good buy now?

LG Electronics India Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of LG Electronics India Ltd?

LG Electronics India Ltd revenue growth is 14.1% for FY-2025, which is above its 5-year CAGR of 9.18%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of LG Electronics India Ltd?

LG Electronics India Ltd Return on capital employed is 61.55% for FY-2025, which is above its 5-year historical median of 37.43%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of LG Electronics India Ltd?

LG Electronics India Ltd Return on Asset is 12.73%, which is above its 5-year historical median of 9.8%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of LG Electronics India Ltd?

LG Electronics India Ltd Return on equity is 45.23% for FY-2025, which is above its 5-year historical median of 27.35%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of LG Electronics India Ltd?

LG Electronics India Ltd Cash conversion cycle is 16 days, above its 5-year historical median of 12 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.42	1.3
ROE	45.23	27.35
ROCE	61.55	37.43
Cash Conversion Cycle	16 days	12 days

Q.6 Gross Profit margin of LG Electronics India Ltd?

LG Electronics India Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.6% for FY-2025, which is above its 5-year median of 11.2%, indicating increasing margins.

Q.7 Operating Profit Margin of LG Electronics India Ltd?

LG Electronics India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.91% for FY-2025, which is above its 5-year median of 10.55% indicating increasing margins.

Q.8 Net Profit Margin of LG Electronics India Ltd?

LG Electronics India Ltd Net Profit Margin is 9.04% for FY-2025, is above with its 5-year median of 7.16%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	13.6	11.2
Operating Profit Margin	12.91	10.55
Net Profit Margin	9.04	7.16

Q.9 Debt to Equity ratio of LG Electronics India Ltd?

LG Electronics India Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.09, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of LG Electronics India Ltd?

LG Electronics India Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of LG Electronics India Ltd?

Promoters hold 85.00% of the LG Electronics India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of LG Electronics India Ltd vs industry peers?

LG Electronics India Ltd revenue CAGR is 9.18%, compared to the industry median CAGR of 8.61%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	14.1	8.6
Gross Profit Growth	39.2	6.1
Operating Profit Growth	39.3	4.3
Net Profit Growth	45.8	21

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.42	1.94
ROE	45.23	23.92
ROCE	61.55	32.15
Cash Conversion Cycle (days)	16.37	9

Valuation & price assessment

Q.1 Stock return of LG Electronics India Ltd over the last decade?

Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-

Q.3 Valuation ratios of LG Electronics India Ltd vs historical?

The current P/E is similar that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	47.94	48.05	45.77
Price to Book	15.17	15.11	3.45
Price to Sales	4.33	4.35	1.16
EV to EBITDA	29.99	30.07	19.84

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