India’s largest consumer durables IPO promises not just scale but also industry-leading financial efficiency—LG India IPO Peer Comparison highlights its superior scale, stronger profitability, healthier balance sheet, and attractive valuations against Havells, Voltas, Whirlpool, and Blue Star
LG Electronics India, a household name synonymous with refrigerators, washing machines, televisions, and air conditioners, is now entering the capital markets with one of the most anticipated IPOs of 2025. Scheduled between 7 – 9 October 2025, the offering is set to raise nearly INR 11,000–11,600 crore, entirely through an Offer for Sale by its parent, LG Electronics Inc.
For investors, this is more than just a public issue—it’s a chance to invest in the clear market leader in consumer durables, backed by a global parent, debt-free balance sheet, strong profitability, and unmatched distribution strength. But the real question is: how does LG India compare with its listed peers—Havells, Voltas, Whirlpool, and Blue Star?
Why Peer Comparison Matters
The consumer durables sector in India is intensely competitive. Each company brings its own niche:
- Havells with its dominance in electrical goods and appliances,
- Voltas with its cooling and project solutions,
- Whirlpool with its pedigree in washing machines and refrigerators,
- Blue Star with its commercial cooling and unitary products.
In this context, LG India’s positioning must be evaluated not in isolation but relative to these established players. LG India peer comparison provides investors with insights into where the company stands in terms of scale, profitability, and valuations.
LG India IPO Peer Comparison: Financial Scale
| Metric | LG India | Havells | Voltas | Whirlpool | Blue Star |
|---|---|---|---|---|---|
| Revenue | 24,366 | 21,778 | 15,413 | 7,919 | 11,968 |
| Net Profit | 2,203 | 1,470 | 834 | 363 | 591 |
| EBITDA | 3,110 | 2,131 | 990 | 557 | 887 |
| EBITDA Margin (%) | 12.8 | 9.8 | 6.4 | 7.0 | 7.4 |
| PAT Margin (%) | 8.9 | 6.7 | 5.3 | 4.5 | 4.9 |
- Scale Advantage: LG India is the largest in terms of revenue and net profit, comfortably surpassing Havells and leaving Whirlpool and Blue Star far behind.
- Margins Leadership: Its EBITDA margin of 12.8% and PAT margin of 8.9% make it not just the biggest but also one of the most profitable among peers.
- Market Standing: While Havells commands a hefty valuation in the market, LG India’s size and superior margins provide a strong case for a valuation premium of its own.
In simple words, LG India offers investors a rare combination of scale + profitability, which is uncommon in the consumer durables sector.
Profitability & Efficiency Metrics
When it comes to capital efficiency, LG India outshines its listed peers by a wide margin. A debt-free balance sheet, improving profitability, and strong return ratios have made it stand apart in a sector where margins are often wafer-thin.
| Company | RoCE (%) | RoNW (%) | EPS (INR) |
|---|---|---|---|
| LG India | 42.9 | 37.1 | 32.5 |
| Havells | 20.0 | 17.6 | 23.5 |
| Voltas | 12.5 | 12.8 | 25.4 |
| Whirlpool | 8.1 | 9.1 | 28.3 |
| Blue Star | 22.0 | 19.3 | 28.8 |
- Capital Efficiency: LG’s RoCE (43%) and RoNW (37%) are significantly higher than peers, reflecting superior utilization of capital and shareholder funds.
- EPS Leadership: At ₹32.5, LG’s EPS leads the pack, further reinforcing earnings strength.
- Balance Sheet Quality: Despite higher NAVs in Whirlpool and Voltas, their return ratios remain modest, showing weaker efficiency compared to LG.
LG India vs Havells vs Voltas vs Whirlpool vs Blue Star: Valuation Ratios
Valuations are where the market’s perception comes into play. Peers like Havells and Blue Star trade at steep multiples, reflecting investor appetite for consumer durable plays. LG India’s IPO, however, is priced more reasonably, offering an attractive balance.
| Metric | LG India | Havells | Voltas | Whirlpool | Blue Star |
|---|---|---|---|---|---|
| P/E (x) | 35.1 | 65.7 | 69.2 | 48.4 | 72.0 |
| P/B (x) | 13.0 | 11.1 | 6.9 | 4.3 | 12.6 |
| P/S (x) | 3.2 | 4.3 | 3.1 | 2.0 | 3.2 |
- Balanced Valuation: At 35x P/E, LG trades at a discount to Havells, Voltas, and Blue Star despite better margins and higher returns.
- Premium vs Whirlpool: Whirlpool may look cheaper, but its growth and efficiency lag LG’s, justifying LG’s higher multiples.
- P/B & P/S Comfort: LG’s P/B (13.0) and P/S (3.2) are aligned with sector.
LG India vs Peers: Liquidity & Solvency Metrics
In volatile markets, balance sheet health often makes the difference. LG India’s completely debt-free status gives it an edge over peers, alongside a robust current ratio.
| Company | Debt-to-Equity | Current Ratio |
|---|---|---|
| LG India | 0.00 | 1.95 |
| Havells | 0.04 | 1.86 |
| Voltas | 0.14 | 1.41 |
| Whirlpool | 0.08 | 2.01 |
| Blue Star | 0.12 | 1.19 |
- Debt-Free Comfort: LG India’s zero debt is unmatched, offering resilience against interest rate fluctuations and market cycles.
- Healthy Liquidity: With a current ratio of 1.95, LG balances liquidity better than peers. Even peers with modest leverage (like Havells and Blue Star) operate conservatively, but LG’s “cleanest” balance sheet sets it apart.
Market Positioning & Strategic Advantages
In a sector where consumer trust and distribution strength are as critical as financial performance, LG India enjoys unmatched advantages.
- Category Leadership: LG is India’s No.1 player in refrigerators, washing machines, televisions, and inverter ACs. Its early pivot to inverter ACs gave it a decisive head start—by 2024, 8 out of 10 ACs sold in India were inverter-based, a trend LG spearheaded.
- Distribution Moat: With 35,640 B2C touchpoints, 1,006 service centers, and over 13,000 engineers, LG’s reach is unparalleled. This wide footprint ensures visibility from metros to tier-III cities, far ahead of peers with limited networks.
- Manufacturing Strength: Two plants at Noida and Pune (14.5 mn units capacity, 77% utilization) give LG economies of scale and cost control. A third plant in Andhra Pradesh, with a planned investment of INR 5,001 crore, will further expand capacity.
- After-Sales Stickiness: The service ecosystem generates recurring income (~INR 666 Cr in FY25), a unique feature absent in most peers. This reinforces customer loyalty and ensures long-term engagement.
Final Words
LG India peer comparison highlights that the company delivers a rare trifecta—scale, profitability, and balance sheet strength.
- Scale & Profitability: At over INR 24,000 Cr in revenue with superior margins, LG dwarfs rivals in both size and earnings quality.
- Efficiency & Returns: With RoCE >40% and RoNW >35%, LG is extracting maximum productivity from capital, far ahead of sector benchmarks.
- Valuation Comfort: At ~35x P/E, LG India is priced below Havells, Voltas, and Blue Star, despite better fundamentals—making the IPO relatively attractive.
- Balance Sheet Health: Debt-free status and strong liquidity offer resilience.
- Strategic Edge: Wide distribution, robust service network, and diversified product portfolio ensure sustainability.
LG India IPO is not just about entering the stock market—it’s about offering investors a slice of India’s most trusted consumer durable brand. While challenges exist, they are well balanced by LG’s strengths. For investors seeking long-term exposure to India’s rising middle-class consumption story, LG India stands out as the most compelling bet among its peers.
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