LG Electronics gains 3%; Morgan Stanley, Dolat Capital initiate coverage

Shares of LG Electronics rose by over 3 per cent on Wednesday, backed by coverage initiation and bullish calls from multiple brokerages, despite the weak earnings for the September quarter.

 

The household appliances maker's stock rose as much as 3.44 per cent during the day to ₹1,680 per share, the biggest intraday rise since November 13 this year. The LG electronoics stock pared gains to trade 2.8 per cent higher at ₹1,670 apiece, compared to a 0.07 per cent advance in Nifty 50 as of 11:13 AM. 

 

Shares of the company currently trade at 0.4 times the average 30-day trading volume, according to Bloomberg. The counter has fallen nearly 2.3 per cent since its listing on October 14 this year, compared to a 2.8 per cent advance in the benchmark Nifty 50. LG Electronics has a total market capitalisation of ₹1.13 trillion.   CATCH STOCK MARKET UPDATES TODAY LIVE

 

Morgan Stanley, Dolat Capital initiate coverage on LG Electronics

Global brokerage initiated coverage with an 'Overweight' rating on the household appliances maker's stock with a target of ₹1,864 per share, citing that it's the top-tier consumer durables franchise in India, according to reports. 

 

Analysts noted that LG stands out across many categories in a highly competitive consumer durables market and has "industry-leading margins and best-in-class capital efficiencies." It expects revenues and margins to be driven by its new capacity and sees greater contribution from exports and B2B business. 

 

Meanwhile, analysts at Dolat Capital on November 17 gave a new 'Accumulate' rating, adding that it's "India’s most trusted consumer durable brand." LG Electronics also offers a wide product portfolio and maintains market leadership in key categories such as washing machines, refrigerators, panel TVs and inverter air-conditioners, it said. 

 

The company is as well-positioned for growth, supported by its large distribution network, advanced manufacturing and product innovation capabilities, and strong parentage, the brokerage said.   ALSO READ | Titagarh Rail shares slip as analysts trim estimates after Q2 results

LG Electronics Q2 results 

LG Electronics India saw its net profit decline by 27.3 per cent due to margin pressures witnessed in Q2FY26. Its net sales in the quarter marginally rose 0.9 per cent to ₹6,170.4 crore in the July-September quarter.

 

The appliance major saw its PBIDT (profit before interest, depreciation and taxes) drop 23.8 per cent to ₹627.3 crore in the quarter. The company said it witnessed margin pressures due to the combined impact of rising commodity prices and incremental investments in festive go-to-market initiatives to support the company’s distributors during tough market conditions.

 

“The H&A segment maintained its market leadership in Q2FY26, recording growth across key categories. While the GST revised rate announcement temporarily deferred consumer purchase, LGEIL’s strong brand equity and resilient distribution network helped strengthen its premium market share,” the company said in its results release.