LG Electronics India Limited

Technology — Consumer Electronics · NSE

₹1,718.90−₹13.20 (−0.76%)

DalalBaazaar Score

53 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of LG Electronics India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

LG Electronics India Limited manufactures and sells home appliances and consumer electronics in India, rest of Asia, Africa, Europe, the Middle East, South-Central America, and internationally. It operates in two segments, Home Appliances and Air Solution, and Home Entertainment.

IndustryConsumer Electronics

SectorTechnology

Employees3,835

Annual revenue₹24,459 Cr

How does it make money?

Turns over ₹24,459 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 3,835 employees supports ₹6.38 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹6.38 Cr

Who are its competitors?

The closest listed comparisons in its industry are HAVELLS INDIA LIMITED, VOLTAS LTD, TITAN COMPANY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 27.6% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE17.1%

What is the outlook?

30 analysts covering the stock expect revenue to grow about 12.6% and earnings to grow about 19.6% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+12.6%

Est. earnings growth+19.6%

Analysts30

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 63.9x is demanding — it needs sustained high growth to justify
✗ P/B of 15.22x is a steep premium to book

Quality vs. Valuation

Company Quality

59/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

38/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

63.9x

Sector Median

68.5x

median of 3 sector peers

🟡Against its sector it is priced broadly in line with the peer median of 68.5x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Fair

68.5x median of 3 peers · -7%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

41.6x

PEG

2.35

What's Good / What's Bad

🟢 What's Going Well1

High return on capital employed
ROCE of 27.6% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 1 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 5.99x — earnings must service borrowings before shareholders see anything.
🟡Margins are compressingFinancial
EBITDA margin is down 2.9 points over 1 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 27.6% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 14.0% to 11.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 5.99x. Interest is payable whether or not the business has a good year.
Growth barely outpaces inflation
Revenue compounding at 1.3% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 9%✓ 11.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 1.3% CAGR
Latest reported year was 15.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹549 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 25%✓ 27.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 1 neutral · 3 weak

Market Cap

₹1.17 L Cr

Large Cap

Large, widely-covered business — typically the steadiest of the bands

P/E (Trailing)

63.9x

Expensive

Expensive — verify against sector peers

P/B Ratio

15.22x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹26.89

Profitable

Profitable on a per-share basis

ROE

22.0%

Strong

Strong capital efficiency

ROCE

27.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

5.99x

High

High leverage

Revenue Growth (YoY)

15.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

27.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹549 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

43.0x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

11.0%

Average

Average margins

Net Margin

7.1%

Average

Average bottom-line conversion

Current Ratio

2.08

Comfortable

Healthy short-term liquidity

52W Range Position

80%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1726.1 / 1676.5

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

49.1

Neutral momentum

Financial Trend (2-Year)

Metric	FY25	FY26	1Y CAGR
Revenue	₹24,157 Cr	₹24,459 Cr	+1.3%
EBITDA	₹3,374 Cr	₹2,710 Cr	-19.7%
EBITDA Margin	14.0%	11.1%	—

🟡 Revenue has been broadly flat over 1 years (1.3% a year).

🔴 EBITDA has shrunk at 19.7% a year over 1 years.

🔴 EBITDA Margin has fallen from 14.0% to 11.1% over 1 years (-2.9 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹13,636 Cr

Total Liabilities

₹5,971 Cr

Total Debt

₹459 Cr

Cash & Equivalents

₹4,411 Cr

Operating Cash Flow

₹1,721 Cr

Capex

-₹1,172 Cr

Shareholding (proxy)

Institutional Holding

7.8%

Insider Holding

85.0%

Analyst Consensus

Recommendations

27 Buy · 1 Hold · 3 Sell

Target Price (Mean)

₹1,904.9

+10.8% vs CMP

Target Range

₹1,530 – ₹2,100

Peer Comparison

Company	P/E	ROE
HAVELLS INDIA LIMITED	43.5x	17.1%
VOLTAS LTD	75.8x	7.0%
TITAN COMPANY LIMITED	68.5x	36.7%

Recent News

2 mixed1 negative3 general

LG Electronics India stock a year after IPO: Still worth it?

Value Research, 17 Oct

LG Electronics, Polycab among picks as premiumisation and infrastructure demand drive growth: Siddhartha K

The Economic Times, 18 Oct

LG Electronics India receives ₹153.58 crore customs show cause notice

scanx.trade, 18 OctRegulatory

🔴Potentially negativeRegulatory and legal actions carry a financial cost and a governance question. The second usually matters more than the first.

LG Electronics surges 6%; at record high; what's driving stock price?

Business Standard, 05 Oct

LG Electronics India share price target: BOB Capital sees 20% upside | What’s driving the call?

Livemint, 23 SeptAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

LG Electronics India Share Price rises 2% | Stock analysis

Univest, 23 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Profitability

MiddlingBusiness Quality · Risk

WeakGrowth · Valuation

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Revenue growth stays above 4% a year · see Key things to watch ↑