LG Electronics gears up for growth on multiple tailwinds, say analysts

Antique retained its 'Buy' rating on LG Electronics with a target price of ₹1,796. Meanwhile, Emkay Global Financial Services retained its 'Buy' rating with a target price of ₹1,900

LG Electronics India Ltd. has seen analysts reiterate their bullish stance following recent management interactions, driven by expectations of a stronger summer season, a pickup in exports, and a recovery in discretionary spending. 

Antique Stock Broking said the company highlighted its preparedness to tap seasonal demand, the current demand environment across categories, pricing actions to offset cost inflation, and capital expenditure plans to support future growth.  

Management also indicated readiness to handle potential supply chain disruptions, including those related to LPG shortages, amid ongoing geopolitical challenges, the brokerage said. 

According to Antique, LG Electronics is strengthening its leadership through multiple initiatives, including the launch of its affordable 'LG Essentials' range to attract first-time buyers, a steady pipeline of innovative products, and a sharper distribution strategy to expand its pan-India reach while reinforcing its premium positioning. 

 

Backed by a strong brand, advanced manufacturing capabilities, and a wide distribution and service network, the company is well placed to tap India’s underpenetrated ₹6.2 trillion appliances market by FY29, Antique said. Its focus on India-specific, energy-efficient products and faster execution compared to peers is expected to support growth across both mass and premium segments.  READ | Motilal Oswal trims SBI Life target; commission caps seen as near-term risk 

Antique retained its 'Buy' rating on the LG Electronics stock with a target price of ₹1,796. Meanwhile, Emkay Global Financial Services retained its 'Buy' rating with a target price of ₹1,900, an upside of 21 per cent from Tuesday's close. 

Emkay cited sustained domestic market share gains, expectations of a stronger summer season supported by normalised channel inventory, and a gradual pickup in exports from FY27, led by the ramp-up of the Sri City plant over FY27 to FY29. 

The brokerage also noted that the company does not expect any production disruption from the current LPG supply situation, given its limited dependence for refrigerators and room air conditioners, with supplies secured until March 2026 and a transition to PNG and diesel underway. However, it added that vendors are facing supply-side challenges.\ 

Emkay said the company plans to double exports, currently at around 6 per cent of revenue, by FY27, including shipments to the US and expansion in other developing markets. It also highlighted that the expansion into the mass segment through the 'Essentials' range is unlikely to dilute margins.  READ | HDFC Sec assigns 'Buy' tag to NTPC Green Energy, sees 22% upside; know why 

Channel inventory for room air conditioners has normalised following a weak previous season and destocking in the third quarter, the brokerage said. It added that demand remains highly sensitive to temperature trends, with management indicating that 10 to 15 days of peak summer could absorb up to 3 million units of channel inventory. 

JM Financial said LG Electronics has guided for flat revenue in FY26 at around ₹24,400 crore, similar to FY25 levels, with the fourth quarter expected to support the target. The brokerage added that Ebitda margins are likely to reach double-digit levels in FY26, before gradually reverting to FY25 levels in FY27. 

========== 

(Disclaimer: The views and investment tips expressed by the analysts in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.)