LG Electronics India Ltd.
ISIN: INE324D01010 • Market Cap: ₹1.12 Lakh Cr
The 5-Pillar Quality Audit for LG Electronics India Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (10.1%), Return on Capital Employed (28.4%), and equity compounding (22.0%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.00 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (—) and 3Y PAT CAGR (—).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 61.16 vs PEG of 3.09 and Dividend Yield of —.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 85.0%, backed by 11.0% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 28.4%)
LG Electronics India Ltd. generates exceptional return on capital employed of 28.4%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 22.0%)
Shareholder equity compounds at a healthy 22.0%, exceeding average Indian equity benchmarks.
Fortress Balance Sheet (D/E: 0.00)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Consumer Durables)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Consumer Durables space.
Quantitative Strategy Eligibility
Checking LGEINDIA against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 65/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Consumer Durables Sector Peer Comparison
Compare LGEINDIA directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| LG Electronics India Ltd. (LGEINDIA)Current | 65/100 | ₹1.12 Lakh Cr | 61.16 | 28.4% | 0.00 | — |
| Titan Company Ltd. (TITAN) | 70/100 | ₹4.50 Lakh Cr | 78.05 | 39.2% | 1.76 | View |
| Asian Paints Ltd. (ASIANPAINT) | 67/100 | ₹2.51 Lakh Cr | 52.73 | 24.4% | 0.11 | View |
| Dixon Technologies (India) Ltd. (DIXON) | 82/100 | ₹88,626 Cr | 47.21 | 30.1% | 0.07 | View |
| Havells India Ltd. (HAVELLS) | 70/100 | ₹80,202 Cr | 49.11 | 22.7% | 0.00 | View |
| Berger Paints India Ltd. (BERGEPAINT) | 63/100 | ₹62,340 Cr | 51.24 | 16.5% | 0.02 | View |
Frequently Asked Questions: LG Electronics India Ltd.
Q:What is the 5-Pillar Fundamental Score for LG Electronics India Ltd. (LGEINDIA)?
LG Electronics India Ltd. has a RupeeTools Fundamental Score of 65/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (75/100), Financial Health (82/100), Growth (50/100), Valuation (32/100), and Ownership Quality (72/100).
Q:Is LGEINDIA fundamentally strong for long-term investment?
LGEINDIA currently holds a moderate quality rating of 65/100. While it operates in the Consumer Durables sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does LGEINDIA pass the Coffee Can Investing filter?
No. LGEINDIA does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does LGEINDIA compare against other Consumer Durables peers?
Within India's Consumer Durables sector, LGEINDIA trades at a P/E of 61.16 and generates an ROCE of 28.4%. Compare its 5-Pillar score of 65/100 against top sector peers like Titan Company Ltd. (70/100), Asian Paints Ltd. (67/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.