🔷 IPO Details: Open: 7 to 9 October 2025 Price: ₹ 1140 Size: ₹ 11,607 Cr 100% Offer for Sale by LG Electronics Inc

🔷 KPIs (FY 25): ▫️ ROE: 37.1% ▫️ ROCE: 42.9% ▫️ EBITDA Margin: 12.76% ▫️ Revenue YoY Growth: 14.12% ▫️ PAT YoY Growth: 45.81% ▫️ Debt : Zero

🔷 Risk Factors: ➡️ Legal proceedings 🚩This is the major risk I talked- There is significant tax litigation against co. by IT & GST dept. worth ₹ 4744 Cr That's ~2x of FY25 PAT Most pending at HC & ITAT Co. have good cash reserves to mitigate if anything materializes but-

-its imp to track if you invest in LG as any outcome could majorly impact balance sheet ➡️ High competition: Indian appliances & electronics market is highly competitive with domestic & global players The company has noted a decrease in market share in select product categories

➡️ Royalty & Dependence on Promoter: Business is heavily dependent on its promoter, LG Electronics Inc. for technology & brand usage under a License Agreement for that, LG India pays significant royalties (₹455 Cr in FY25) ➡️ Seasonality effect on sales of AC and refrigerators

🔷 Peer Comparison: As on March 25 as per RHP ➡️ P/E : LG : 35.1 Havells: 64.1 Voltas: 52.7 Whirlpool: 43.5 BlueStar: 65.6 ➡️ EBITDA Margins: LG : 12.8% Havells: 9.8% Voltas: 6.4% Whirlpool: 7% BlueStar: 7.4% ➡️ IPO is Reasonably priced than peers👍🏻

🔷 Industry Overview: ➡️ Indian Appliances & Electronics sector is in a high growth phase; projected to grow ~11% CAGR from FY 24 to 29 to ₹ 11 Lakh Cr ➡️ Growth is fueled by rising incomes & private consumption, urbanization & increasing penetration of appliances in-

-both urban and rural areas ➡️ Shift to Premium, technology driven products with features like smart home compatibility & energy efficiency ➡️ Favorable Government Initiatives like 'Make in India' & PLI scheme are fostering local manufacturing & reducing import dependency

🔷 Company Overview & Key Strengths: ➡️ No. 1 Diversified Player in India across multiple product categories including TV ,washing machines, refrigerators, AC ➡️ LG Offers one of the widest product portfolio amongst peers catering to both B2C & B2B consumers ➡️ Flagship LG-

-brand a Global Leader in tech & innovation & highly trusted brand in India ➡️ Strong Financial & Capital efficient business model with high profitability & No debt 🔷 Promoter & BOD: ➡️ LG Electronics Inc. Korea is the promoter of the company ➡️ 100% promoter holding Pre IPO

🔷 Consolidated Financial Summary: From FY 23 ➡️ FY25: ▫️ Revenue : ₹20,109 Cr ➡️ ₹24,631 Cr 11% CAGR💹 ▫️ PAT : ₹1345 Cr ➡️ ₹2203 Cr 28.0% CAGR💹 ➡️ Decent Revenue growth & Excellent PAT growth is driven by operational efficiency & margin expansion

🔷 Operating Cash Flows : ➡️ Robust & Excellent OCF of +₹1654 Cr for FY25 reflects its strong profitability and efficient working capital management. ▫️Receivables less than 10% of sales which suggest efficient cycle ▫️ Impressive cash equivalents reserves of 4575 Cr 💰

🔷 Key take ✅Reasonable Valuation than Peers & Strong financial with market leadership & debt free ❌Litigations & dependency on promoter for brand & tech with Royalty fees 🔷Rating 8/10 🙏Thanks for Reading Follow @EngineerStockks for more such analysis & Retweet🧵 The 🔚