LG Electronics India made a striking debut on Dalal Street on Tuesday, listing at nearly a 50 percent premium over its IPO price. The strong entry has shaken up the household appliances sector, prompting investors to compare LG Electronics with long-standing competitors Havells, Voltas, and Blue Star to see which stock holds the greatest potential for long-term gains.
LG Electronics Share Performance Stuns Investors
LG Electronics shares opened at Rs 1695.80 on the BSE and maintained momentum, trading at Rs 1716.19 at 9:30 am on Wednesday, reflecting a 48 percent premium on the upper IPO price band of Rs 1,682. The company’s market capitalization now stands at Rs 1,16,538 crore.
This strong debut highlights investor confidence in LG’s established brand and growth potential in India’s growing household appliance market.
The company’s listing success has already made it one of the most valuable appliance players in the country, surpassing the market capitalization of several competitors.
Comparing Share Prices of Industry Leaders
As LG Electronics shines, its rivals show mixed performance in 2025:
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Havells India: Trading at Rs 1,456 per share, up 0.56 percent, but down 13.36 percent year-to-date.
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Blue Star: Trading at Rs 1,897 per share, up 0.90 percent, but down 16.24 percent year-to-date.
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Voltas: Trading at Rs 1,397.70 per share, up 0.43 percent, down 23.41 percent year-to-date.
The table below shows a snapshot of share performance and market capitalization:
| Company | Share Price (Rs) | YTD Change | Market Cap (Rs Crore) |
|---|---|---|---|
| LG Electronics | 1,716.19 | +48% | 1,16,538 |
| Havells | 1,456 | -13.36% | 91,500 |
| Blue Star | 1,897 | -16.24% | 39,000 |
| Voltas | 1,397.7 | -23.41% | 46,118.72 |
LG Electronics clearly leads in market value, reflecting strong investor interest compared to older competitors.
Financial Metrics: RoE, RoCE, and P/E Ratios
Investors are also evaluating profitability and valuation metrics:
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LG Electronics: RoE of 36.9% in FY25, according to SBICAPS; P/E ratio not yet updated.
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Havells: RoE of 18.35%; P/E ratio 18.35 standalone, 11.70 consolidated.
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Blue Star: RoE of 17.23%; P/E ratio 87.20 standalone, 71.81 consolidated.
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Voltas: RoE of 8.09%; P/E ratio 71.95 standalone, 72.10 consolidated.
LG Electronics demonstrates significantly higher return on equity, indicating superior profitability compared to peers.
Expert Views Highlight LG’s Growth Potential
Prior to the IPO, over 10 brokerage firms gave LG Electronics a ‘Buy’ rating, citing its strong fundamentals and market positioning.
Emkay Global noted that LG has “built a formidable franchise, leading in large appliance categories with premium positioning, leveraging global R&D strength and brand power.” The report emphasized that India, as the largest appliance market outside the US and Korea, could contribute one-third of LG’s global growth over five years.
The brokerage added that LG deserves a premium valuation, with high RoE and mass-premium product expansion justifying a potential 50x multiple.
Havells India is expected to grow steadily with its Lloyd brand and new product developments. Kotak Securities predicts earnings per share growth of 8.4% in FY26 and 22% in FY27.
Blue Star continues to hold a strong position in the air conditioning and electronics sector, with consistent revenue and margin delivery. Analysts project a 16-17% CAGR in revenue, EBITDA, and PAT over FY25-28.
Voltas faces challenges due to higher inventories in the channel, though it anticipates a demand revival in Q3 following festival season demand and GST reduction. The company has maintained channel incentives to support sales growth.
What This Means for Investors
The debut of LG Electronics offers a new high-growth option in the household appliance segment. Compared to its peers, LG not only leads in market capitalization but also in profitability and growth potential.
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For long-term investors, LG appears to offer strong returns backed by high RoE, strategic global positioning, and premium brand recognition.
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Havells and Blue Star remain steady performers with consistent margins and product innovation, suitable for moderate-risk portfolios.
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Voltas may be a more cautious bet due to inventory challenges and slower growth in the short term.
Investors now have an opportunity to diversify in the appliance sector by evaluating growth, profitability, and valuation across these leading companies.
The surge of LG Electronics has set a new benchmark for household appliance stocks in India. With its strong IPO listing and market performance, it could redefine the competitive landscape, forcing peers to innovate and adapt rapidly.
The question now is which of these appliance stocks will offer the best long-term value as India’s consumer demand continues to expand. Share your thoughts on which company you believe has the brightest future and share this article with friends to spark a conversation about investment opportunities.
