Investment Research - Asia Consumer Sector, Investory

Devi Subhakesan

Investment Research - Asia Consumer Sector

ASIA CONSUMER: INSIGHTS AND INVESTMENT IDEAS

Investory

Investory is a Singapore-based boutique independent equity research firm founded in January 2017 with a primary focus on consumption themes across Asia-Pacific.

We aim to generate investible ideas based on consumption trends and outlook. We screen our ideas on several parameters - product potential, long-term growth and management commitment being the most critical.  We follow a fundamental analysis approach in our stock selection process and are not restricted by market cap.

We aspire to grow into a leading source of unbiased research, free of conflict of interest, for investors yearning for independent and disciplined analysis. 

We also undertake bespoke research mandates to support our Institutional clients’ investment needs.

Our team comprises of professionals with extensive experience in the Asian equity markets, in areas ranging from research, servicing institutional clients and investment management.

Equity Capital Markets

<ul>
<li>LG Electronics India posted strong profit growth for FY24, reinforcing its leadership in India’s booming consumer durables sector—making now an ideal window for an IPO in India.</li>
<li>The company reportedly aims to raise USD1-USD1.5 billion early next year, potentially valuing its Indian operations at over USD10 billion.</li>
<li>With government initiatives improving housing quality, electrification, and water access, white goods penetration is set to rise, supporting future demand growth.</li>
</ul>


LG Electronics India posted strong profit growth for FY24, reinforcing its leadership in India’s booming consumer durables sector—making now an ideal window for an IPO in India.
The company reportedly aims to raise USD1-USD1.5 billion early next year, potentially valuing its Indian operations at over USD10 billion.
With government initiatives improving housing quality, electrification, and water access, white goods penetration is set to rise, supporting future demand growth.


LG Electronics India IPO: Strike While the Iron Is Hot. Cash in on Growth Momentum

<ul>
<li>
<a href="https://www.smartkarma.com/entities/lg-electronics-inc" target="_blank" data-smartkarma-citation="entities:8814:1" rel="noopener">LG Electronics</a>’s India business IPO could be valued above USD 7 billion, exceeding market expectations, driven by its dominant position in India's growing home appliances market and strong sector valuations.</li>
<li>Favourable market conditions and robust sector growth make now an ideal time for <a href="https://www.smartkarma.com/entities/lg-electronics-inc" target="_blank" data-smartkarma-citation="entities:8814:1" rel="noopener">LG Electronics (066570 KS)</a> to launch its India IPO, securing high investor interest and compelling valuations.</li>
<li>In a recent interview, <a href="https://www.smartkarma.com/entities/lg-electronics-inc" target="_blank" data-smartkarma-citation="entities:8814:1" rel="noopener">LG Electronics(066570 KS)</a>  CEO William Cho mentioned that an Indian market debut is one of several options being considered to revitalise the company’s consumer electronics business.</li>
</ul>



LG Electronics’s India business IPO could be valued above USD 7 billion, exceeding market expectations, driven by its dominant position in India's growing home appliances market and strong sector valuations.
Favourable market conditions and robust sector growth make now an ideal time for LG Electronics (066570 KS) to launch its India IPO, securing high investor interest and compelling valuations.
In a recent interview, LG Electronics(066570 KS)  CEO William Cho mentioned that an Indian market debut is one of several options being considered to revitalise the company’s consumer electronics business.


LG Electronics India IPO: Potential Big Gains. Booming Demand, Buoyant Valuations

External broker reports(aggregated public sources), Nirmal Bang

Nirmal Bang

External broker reports(aggregated public sources)

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Equity Bottom-Up

<div><div><div><div><ul><li>Front-load Washing Machine update: Front-load Washing Machine revenue grew by 2.8% YoY in 4QFY22 to Rs2.38bn. Sales were affected in Dec’21 and Jan’22 due to the third covid wave.</li></ul><div><div><div><div><ul><li>Top-load Washing Machine update: Sales of top-load Washing Machines increased by 33.6% YoY in 4QFY22 to Rs972mn.</li></ul><div><div><div><div><ul><li>Outlook: Over FY21-FY24E, we expect IFB to post 22.4% revenue CAGR. With the commissioning of self- manufacturing plant, addition of AC OEMs and scale-up in other categories, we expect earnings CAGR of 45.2% over FY21-FY24E.</li></ul></div></div></div></div></div></div></div></div></div></div></div></div><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Front-load Washing Machine update: Front-load Washing Machine revenue grew by 2.8% YoY in 4QFY22 to Rs2.38bn. Sales were affected in Dec’21 and Jan’22 due to the third covid wave.Top-load Washing Machine update: Sales of top-load Washing Machines increased by 33.6% YoY in 4QFY22 to Rs972mn.Outlook: Over FY21-FY24E, we expect IFB to post 22.4% revenue CAGR. With the commissioning of self- manufacturing plant, addition of AC OEMs and scale-up in other categories, we expect earnings CAGR of 45.2% over FY21-FY24E.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

IFB Industries - Margin Pressures Impacts Profitability; Confident of Healthy Demand in Future

Indian Accounting Research Analyst, Trudence Capital Advisors

Nitin Mangal

Indian Accounting Research Analyst

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

Thematic (Sector/Industry)

<p>In our earlier insight, <a href="https://www.smartkarma.com/insights/pli-schemes-let-s-not-get-carried-away" target="_blank" data-smartkarma-citation="insights:45394" rel="noopener">PLI Schemes: Let's Not Get Carried Away</a> we had discussed our take on the recent PLI introduced by the government and how it can shape the economy. This insight focuses on the White goods PLI which have been handed a total budget of INR 62.4 bn. We further narrow our take on the air conditioners (ACs) segment of the white goods.</p>
<p>Domestic AC manufacturers were particularly abuzz when the first thought of PLI came in from the government. However the recent development of the scheme, which targets only the component manufacturing has left most of the domestic large companies thinking whether to opt for the PLI or not.</p>

In our earlier insight, PLI Schemes: Let's Not Get Carried Away we had discussed our take on the recent PLI introduced by the government and how it can shape the economy. This insight focuses on the White goods PLI which have been handed a total budget of INR 62.4 bn. We further narrow our take on the air conditioners (ACs) segment of the white goods.
Domestic AC manufacturers were particularly abuzz when the first thought of PLI came in from the government. However the recent development of the scheme, which targets only the component manufacturing has left most of the domestic large companies thinking whether to opt for the PLI or not.

PLI for White Goods: Domestic Companies Left Stranded

<p>We upgrade our rating on IFB Industries to Buy (from Accumulate earlier) with a SOTP-based target price (TP) of Rs1,300 (from Rs1,535 earlier). On FY23E EPS, we value the Home Appliances business at a P/E of 30x and the Fine Blanking business at P/E of 7x. IFB's stock price has corrected by 22% since 3QFY21 results. IFB's revenue grew by 65% YoY to Rs7.9bn but was 7% below our estimate. The topline was lower than expectation as IFB lost some sales due to intense competition from peers who refrained from passing the price hikes on to consumers.</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

We upgrade our rating on IFB Industries to Buy (from Accumulate earlier) with a SOTP-based target price (TP) of Rs1,300 (from Rs1,535 earlier). On FY23E EPS, we value the Home Appliances business at a P/E of 30x and the Fine Blanking business at P/E of 7x. IFB's stock price has corrected by 22% since 3QFY21 results. IFB's revenue grew by 65% YoY to Rs7.9bn but was 7% below our estimate. The topline was lower than expectation as IFB lost some sales due to intense competition from peers who refrained from passing the price hikes on to consumers.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Ashoka Buildcon Ltd- 4QFY21 Result Update- Order inflow and asset monetization key monitorables

India

IFB Industries Ltd. manufactures household appliances, machine tools, and automobile parts.  The Company produces washing machines, clothes dryers, microwave ovens, and household and commercial dishwashers; machine tools such as straightners, decoilers and strip loaders; motors for appliances; and       a utomobile parts.

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IFB Industries (IFBI IN)

LG Electronics India IPO: Strike While the Iron Is Hot. Cash in on Growth Momentum

LG Electronics India is well poised for an IPO in India after strong profit growth, aiming to raise USD1-USD1.5 billion and potentially valuing...

Devi Subhakesan

LG Electronics India IPO: Potential Big Gains. Booming Demand, Buoyant Valuations

LG's India business IPO could unlock significant value, estimated between USD 6.7 to 9 billion given it's dominant presence in India's booming home...

Devi Subhakesan

IFB Industries - Margin Pressures Impacts Profitability; Confident of Healthy Demand in Future

IFB Industries (IFB) posted revenue of Rs8.8bn, up 10% YoY. The topline was below our estimate by 19.5%, but above consensus estimate by 3.5%.

Nirmal Bang

PLI for White Goods: Domestic Companies Left Stranded

AC manufacturers were particularly abuzz when the first thought of PLI came in. However, the recent development of the scheme has left most of the...

Nitin Mangal

Ashoka Buildcon Ltd- 4QFY21 Result Update- Order inflow and asset monetization key monitorables

We upgrade our rating on IFB Industries to Buy (from Accumulate earlier) with a SOTP-based target price (TP) of Rs1,300 (from Rs1,535 earlier). On...

Nirmal Bang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

LG Electronics India IPO: Strike While the Iron Is Hot. Cash in on Growth Momentum

​LG Electronics India is well poised for an IPO in India after strong profit growth, aiming to raise USD1-USD1.5 billion and potentially valuing...

Devi Subhakesan

LG Electronics India IPO: Potential Big Gains. Booming Demand, Buoyant Valuations

LG's India business IPO could unlock significant value, estimated between USD 6.7 to 9 billion given it's dominant presence in India's booming home...

Devi Subhakesan

IFB Industries - Margin Pressures Impacts Profitability; Confident of Healthy Demand in Future

IFB Industries (IFB) posted revenue of Rs8.8bn, up 10% YoY. The topline was below our estimate by 19.5%, but above consensus estimate by 3.5%.

Nirmal Bang

PLI for White Goods: Domestic Companies Left Stranded

AC manufacturers were particularly abuzz when the first thought of PLI came in. However, the recent development of the scheme has left most of the...

Nitin Mangal

Ashoka Buildcon Ltd- 4QFY21 Result Update- Order inflow and asset monetization key monitorables

We upgrade our rating on IFB Industries to Buy (from Accumulate earlier) with a SOTP-based target price (TP) of Rs1,300 (from Rs1,535 earlier). On...

Nirmal Bang

LG Electronics India is well poised for an IPO in India after strong profit growth, aiming to raise USD1-USD1.5 billion and potentially valuing...