LG Electronics India IPO in Tamil | Cash Flow, Valuation, Risks, GMP, News, Allotment, Listing Gains

📢 Before investing in LG Electronics India IPO, watch this detailed Tamil analysis!

🚀 LG Electronics India IPO in Tamil — Deep dive into Cash Flow, Valuation, Risks, GMP, Latest News, Allotment & Listing Gains.
📊 We also explore dividend payouts, royalty impact, brand strength, and growth opportunities across both B2C and B2B segments.

📊 Detailed Breakdown

🔹 Strong Cash Flow & Financial Highlights

• Operating Cash Flow: ₹1,654 Cr (FY25) – strong profitability & efficient working capital.
• Receivables: less than 10% of sales → efficient cash cycle.
• Cash & Equivalents: ₹4,575 Cr reserves.
• Capex Outflow: ₹770.46M (Q1 FY25) for new manufacturing expansion.
• Dividend Outflow: ₹20,928.82M (FY24) → big financing cash outflow (~9.8% of sales).
• Free Cash Flow Conversion: 59.49% of operating profit → excellent discipline.

🔹 Market Leadership & Category Share

• #1 brand in India’s home appliances & electronics market.
• Market share: Washing Machines – 33.5%, TVs – 27.5%, Refrigerators – 29.5%, Inverter ACs – 20.6%, Microwaves – 48%.
• Premium OLED TV segment – 62.3%.
• Consumer durables in India still underpenetrated → huge future growth potential.

🔹 Growth & Expansion Plans

• Launching AI-based premium appliances and smart home products.
• Entry into built-in kitchens & smart homes.
• Expanding domestic & export capacity – 3rd plant in Sri City (3× capacity).
• Focusing on high-growth B2B sectors: hospitality, retail, healthcare, education.
• Industry outlook: ~11% CAGR for appliances & electronics sector till 2029.

🔹 Valuation & Positives

• IPO priced ~60.75% lower than peers – attractive entry valuation.
• Debt-free, high return ratios, strong global brand.
• FY23–FY25: Revenue CAGR 11%, PAT CAGR 28%.
• EBITDA margin: 12.8%, higher than peers.
• Capital-efficient business, strong brand recall, and wide distribution network.

🔹 Anchor Investor Highlights

• Anchor Book Size: ₹3,474.9 Cr
• 149 participants; 48.9% allocation to 26 domestic MFs.
• Top-tier mutual funds & diversified participation.

⚠️ Risks & Watchpoints

• High dividend payout to parent (LG Korea) – FY24 payout 138.5% of PAT.
• Royalty payments: ~₹455 Cr (FY25), ~1.8% of operating revenue.
• Tax litigation: ₹4,717 Cr pending (≈2× FY25 PAT).
• Weather-related seasonality – mild summers hit AC & fridge sales.
• Heavy dependence on LG Korea for technology, licensing & brand.
• Strong competition from Samsung, Whirlpool, Voltas, and new players.

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📢 Disclaimer:
This video is for educational purposes only and is not financial advice. Please do your own research or consult your financial advisor before investing.