LG Electronics India Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

LG Electronics India Ltd trades at ₹1,582, in a downtrend and 33 weeks into that stage. That is +1.1% against its own 200-day average. It sits at 75% of a 52-week range of ₹1,319 to ₹1,668. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 1 straight week.

Today the stock is in a downtrend — week 33 of stage 4. At ₹1,582 it trades +1.1% versus its 200-day average and sits at 75% of its 52-week range (₹1,319–₹1,668).

Against the market, two honest reads. Cumulative: over the last 10 months the stock moved −5% while the NIFTY 500 moved −2% — behind the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 1 straight week — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/E sits at the 78th percentile of its own range.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

LG Electronics India Ltd trades at 61.5× P/E, at the pricey end of its own range (78th percentile). Its long-run median P/E is 58.4×, measured across 0.8 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 61.5× is at the pricey end of its own range (78th percentile), against a long-run median of 58.4× measured over 0.8 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: No read Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

LG Electronics India Ltd reads as no read on its fundamental arc. Under eight usable quarters on the growth trio — not enough history for an honest trajectory read. The read is built from 5 quarters across 1 curve, on partial evidence.

Why it matters: with too little history, an honest page says so instead of guessing a trajectory.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

Fewer than eight usable quarters on the growth curves — this page will not guess a trajectory from a stub of history.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

49.6/100 — rank 6 of 13 in Consumer Electronics · 69% evidence confidence

LG Electronics India Ltd scores 49.6 out of 100 against the 13 companies it is compared with in Consumer Electronics, ranking 6. Strong business, demanding price: keep it on the quality list, but require either earnings upgrades or valuation compression.

The four contributions add to the total exactly: 12.5 + 21.2 + 5.9 + 10 = 49.6. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

LG Electronics India Ltd reported ₹8,054 Cr of revenue in the Mar 26 quarter, +8.1% year on year. Over 6 years it has compounded at 7.8% a year. The last full year, FY26, came in at ₹24,605 Cr. The last four reported quarters add to ₹24,605 Cr.

LG Electronics India Ltd reported ₹8,054 Cr of revenue in the Mar 26 quarter, +8.1% year on year. Over 6 years it has compounded at 7.8% a year. The last full year, FY26, came in at ₹24,605 Cr. The last four reported quarters add to ₹24,605 Cr.

FY26 revenue came in at ₹24,605 Cr (+1.0% on the year), capping 6 years at 7.8% compound. The latest quarter (Mar 26) printed ₹8,054 Cr, +8.1% year on year.

Pace check: the last four quarters averaged +0.1% growth against the decade's 7.8% — the current year is running slower than its own long-run rate.

→ Revenue grew — did margins hold as it scaled? Next: 12.0% this quarter (−2.0 pp YoY).

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

LG Electronics India Ltd's operating margin is 12.0% in the Mar 26 quarter, −2.0 percentage points against the same quarter a year ago. Across 7 fiscal years the operating margin has ranged 10.0% to 16.0%. The current quarter sits inside that band.

LG Electronics India Ltd's operating margin is 12.0% in the Mar 26 quarter, −2.0 percentage points against the same quarter a year ago. Across 7 fiscal years the operating margin has ranged 10.0% to 16.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 12.0%, −2.0 pp against the same quarter a year ago. Across 7 fiscal years the operating margin has ranged 10.0%–16.0%.

🚨 Why the margin moved: operating margin went −2.3 pp year on year while gross margin went −1.9 pp — the loss came mostly from the gross line: input costs and pricing.

→ Margins slipped — did that reach the bottom line? Next: profit −8.2% in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

LG Electronics India Ltd earned ₹693 Cr of net profit in the Mar 26 quarter, −8.2% year on year. Full-year FY26 profit was ₹1,685 Cr. The 6-year compound rate is −1.6%. That is 8.6% of the quarter's revenue. The same quarter a year earlier earned ₹755 Cr.

LG Electronics India Ltd earned ₹693 Cr of net profit in the Mar 26 quarter, −8.2% year on year. Full-year FY26 profit was ₹1,685 Cr. The 6-year compound rate is −1.6%. That is 8.6% of the quarter's revenue. The same quarter a year earlier earned ₹755 Cr.

Mar 26 profit was ₹693 Cr, −8.2% year on year. On the full year, FY26 printed ₹1,685 Cr (−23.5%), and the 6-year compound rate is −1.6%.

🚨 Why profit moved: revenue contributed +8.1% and the margin −2.0 pp — the quarter was revenue-led despite a thinner margin.

Pace comparison, last four quarters: profit −30.4% vs revenue +0.1%. Profit is growing slower than sales — costs are eating the growth before it reaches the bottom line.

→ Profit rose — but did the cash follow? Next: 93% of the last 3 years' profit arrived as cash.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 93% of LG Electronics India Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹1,721 Cr of operating cash against ₹1,685 Cr of profit. After ₹1,010 Cr of capital spending, ₹711 Cr was left as free cash.

FY26: operating cash of ₹1,721 Cr against reported profit of ₹1,685 Cr, leaving free cash of ₹711 Cr after ₹1,010 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 93% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 93%: the cash cycle stretched 30 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving.

Router verdict: the bigger cash user is investment — capital spending ran 1.6× depreciation over three years, so the next section's job is to check what that build-out is buying.

→ So follow the cash to where it goes. Next: ₹1,790 Cr of building over 3 years.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

LG Electronics India Ltd's cash conversion cycle runs 30 days in FY26, up from 0 days in FY21. Capital spending ran ₹1,790 Cr over the last 3 years. At FY26 sales of ₹24,605 Cr each day of that cycle holds about ₹67.4 Cr, so roughly ₹2,022 Cr sits inside the business at any moment.

FY26: debtors at 42 days, inventory at 63 days — roughly 2.1 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 30 days, looser than FY21's 0.

The full loop: cash goes out to suppliers and production on day 0; stock waits 63 days to sell; customers pay about 42 days after that; and suppliers themselves are paid at 75 days — netting out to the 30-day cycle.

In money terms: at FY26 sales of ₹24,605 Cr, each day of the cycle holds about ₹67.4 Cr — so the 30-day loop keeps roughly ₹2,022 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹1,790 Cr over the last 3 fiscal years against ₹1,140 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹457 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

→ Does all this activity actually earn its cost of capital? Next: ROCE is 32% and the ROIC − WACC spread is +32.0 pp.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

LG Electronics India Ltd earns a ROCE of 32% in FY26. That is up from a trough of 27% in FY22. Return on invested capital clears the cost of that capital by +32.0 percentage points, so growth here adds value rather than only size. The wiring behind it is 6.8% net margin on 1.80× asset turns.

FY26 ROCE is 32%, recovered from a FY22 trough of 27% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 6.8% net margin × 1.80× asset turns × 1.78× balance-sheet leverage ≈ 21.8% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 44.0% − 12.0% = a +32.0 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 0.06.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

LG Electronics India Ltd carries total debt of ₹459 Cr against shareholder equity of ₹7,666 Cr as of Mar 26, a debt-to-equity of 0.06 — effectively unlevered. On the annual view that ratio went from 0.07 in FY25 to 0.06 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of ₹459 Cr against shareholder equity of ₹7,666 Cr — a debt-to-equity of 0.06. On the annual view, debt-to-equity went from 0.07 (FY25) to 0.06 (FY26). The returns on this page are earned, not borrowed.

→ Who owns this, and are they adding or leaving? Next: the register is quiet.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

No holder of LG Electronics India Ltd moved a full percentage point over the last two years — the register is quiet. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — .

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

LG Electronics India Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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