LG Electronics India IPO: How does the consumer electronics player compare to peers?

The domestic consumer discretionary segment is set to see another player enter the bourses: South Korea’s Indian subsidiary LG Electronics India. Already among the leading home appliances and consumer electronics manufacturers, the firm faces strong competition from incumbents such as Voltas, Havells India, Blue Star, and Whirlpool of India.

Issue details:

LG Electronics India is set to launch its maiden public issue on October 7. The South Korea-based promoter LG Electronics Inc will be offloading up to 10.18 crore equity shares via offer-for-sale with no fresh issue component, indicating that the company will not receive any proceeds from the company.

With a price band between Rs 1,080 and Rs 1,140, at the higher end of the band, the post-money market-capitalisation of the issue would clock in at Rs 77,380 crore. This translates into a ~35x FY25 trailing PER compared to large-listed peers like Havells (63x) or Blue Star (66x), noted Emkay Global.

Earnings:

For the quarter ended June 2025, the company posted a profit of Rs 513.3 crore, lower by roughly 25 percent year-on-year. The firm's EBITDA margin for the quarter was 11.4 percent, down 351 basis points on a yearly basis.

The company’s revenue from operations for the first quarter of the current fiscal year was Rs 6,263 crore, lower by roughly 2.3 percent, as against Rs 6,409 crore during the June quarter in 2024.

Peer comparison:

LG Electronics India led its peers with the highest revenue of Rs 24,367 crore in FY25, supported by a robust 14.1 percent year-on-year growth and a healthy EBITDA margin of 12.8 percent. It also delivered the strongest profitability metrics, with a PAT of Rs 2,203 crore, ROCE of 42.9 percent, and RoNW of 37.1 percent.

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Havells India followed with revenue of Rs 21,778 crore, growing 17.1 percent year-on-year, while Voltas and Blue Star recorded similar growth of around 23 percent, reaching Rs 15,413 crore and Rs 11,968 crore, respectively. Whirlpool of India lagged in scale with Rs 7,919 crore revenue but maintained a steady 16 percent growth.

Among peers, LG and Blue Star reported efficient working capital cycles, while Whirlpool achieved the best free cash flow conversion ratio at 56.6 percent.

The company’s efficient business model has driven strong profitability and returns. In FY2024, it recorded a 45.31 percent ROCE, which clocks in well above the industry average of 17 percent, while maintaining a net working capital cycle of just 16 days compared to the sectoral average of 26.

Its EBITDA margin of 10.42 percent and net profit margin of 7.01 percent in FY24 also outperformed peers, which averaged around 7 percent and 4.5 percent, noted Axis Capital.

Cases for investment:

The demand for home appliances and consumer electronics is expected to grow from roughly Rs 6,875 billion in the 6 months ended June 30, 2025 to Rs 10,965 billion in CY2029.

The company is well-positioned to capture the opportunity given its leading market standing, pan-India network, strong brand, and high-quality products, according to the firm’s RHP.

For the volume market, LG Electronics India seeks to provide a mix of products that are accessible, affordable, and designed for Indian consumers, including expanding its product portfolio to cover price points where it does not currently have offerings.

According to the RHP, the washing machine maker’s strategy in the premium category is critical to maintaining its competitive edge and its appeal to aspirational Indian consumers across regions

LG Electronics India operates the largest distribution network among leading home appliances and consumer electronics players in India as of June 30, 2025. The company has 35,640 B2C touch points across urban and rural India for the 3 months ended June 30, 2025.

Going ahead, LG India’s goal is for every Indian household to own a LG product. “We also aim at delivering products that meet core needs of Indian consumers across various price points and build strong brand loyalty through enhanced services experience,” added the company, in its red herring prospectus.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.