Prøve GULL - Gratis
TINA factor driving LG multiples
Mint Mumbai
|November 19, 2025
The maiden quarterly result of LG Electronics India Ltd after it listed in October was nothing close to electrifying. Ebitda fell 27.7% year-on-year to ₹548 crore in the September quarter (Q2FY26) and the margin contracted 350 basis points (bps) to 8.9%.
Profitability was marred by commodity cost inflation. Raw material costs increased to 70.6% of sales from 68.2% year-on-year and sales promotion expenses were higher. This led to steep earnings per share cuts by brokerages.
Revenue grew 1% year-on-year to ₹6,174 crore. Even so, this was better than peers that reported revenue declining in Q2. LG also gained market share, said Centrum Broking.
The implementation timeline of GST 2.0 weighed on LG's Q2 result. LG raised prices by 1.5%-2% for refrigerators and washing machines, which together accounted for 48% of its sales in FY25. This should ensure that LG returns to a double-digit
uation of 40x P/E, based on Bloomberg consensus estimates for FY27.
Denne historien er fra November 19, 2025-utgaven av Mint Mumbai.
Abonner på Magzter GOLD for å få tilgang til tusenvis av kuraterte premiumhistorier og over 9000 magasiner og aviser.
Allerede abonnent? Logg på
FLERE HISTORIER FRA Mint Mumbai
Mint Mumbai
Why waiting for a crash can cost you more than investing at highs
Data over the decades shows timing matters far less than staying invested, whether through SIPs or lump sums
4 mins
January 12, 2026
Mint Mumbai
The long tail of a blockbuster—Collections beyond the box-office
The box-office is no longer the only engine of value for a successful film.
3 mins
January 12, 2026
Mint Mumbai
Swiggy scales up Noice to expand private-label play
Swiggy’s Noice expanded its supplier base from 40 to nearly 70 contract manufacturers
2 mins
January 12, 2026
Mint Mumbai
Elon Musk relies on Gwynne Shotwell to make SpaceX soar
Gwynne Shotwell, the longtime president of SpaceX, confronted a delicate problem last June.
6 mins
January 12, 2026
Mint Mumbai
NSE’s unlisted shares in focus as IPO fog clears
The unlisted market could be in for a flurry of activity, with the National Stock Exchange (NSE) likely to get the market regulator’s approval to begin its listing process by the end of this month.
2 mins
January 12, 2026
Mint Mumbai
Hedge funds get ready for the 'Donroe Doctrine' trade
Call it the “Donroe trade.”
4 mins
January 12, 2026
Mint Mumbai
INSIDE THE CRAVING FOR HERBAL CIGARETTES
Can these smokes become ayurveda’s next big growth driver?
5 mins
January 12, 2026
Mint Mumbai
Europe needs to arm itself again and that's an opportunity for us
Europe will have to reckon with internal divergences as it adapts to the withdrawal of a US shield
3 mins
January 12, 2026
Mint Mumbai
The downside to using AI for all those boring tasks
Some managers make space in the workday for repetitive, low-intensity tasks where creative sparks can fly
3 mins
January 12, 2026
Mint Mumbai
Trump wants Cuba to strike deal with US
US President Donald Trump on Sunday suggested Cuba should strike a deal with Washington, warning that the island nation would no longer receive oil or money from Venezuela.
1 min
January 12, 2026
Listen
Translate
Change font size