Synopsis: Goldman Sachs initiates Buy on LG Electronics India, sees 15% upside, driven by premiumization, faster-than-industry growth, innovation, and long-term structural demand tailwinds.
The shares of this company, which is a leading player in India’s home appliances and consumer electronics industry, holding a significant market share across multiple key categories in the offline channel, are in focus after a global brokerage assigns a “Buy” rating.
With a market capitalization of Rs 1,05,647 crore, LG Electronics India Ltd’s shares on Thursday opened at Rs 1,550.95 per share, down by 0.64 percent from the previous day’s close price of Rs 1,561.15 per share. The share of the company trades at a fairly valued P/E of 51.2x compared to the industry P/E of 48x.
Brokerage views
Goldman Sachs initiated a Buy rating and a target price of Rs 1,750 against the current market price of Rs 1,552, implying an upside potential of 15 percent. The valuation stands at 44x FY28E EPS, reflecting confidence in the company’s long-term growth trajectory despite near-term earnings volatility.
The company maintains market leadership across key product categories, supported by strong premium positioning and brand equity. It is well placed to outpace industry growth in the near to medium term, driven by structural tailwinds such as rising income levels, improving penetration, and increasing demand for middle and premium products.
Growth visibility remains robust, with revenue projected to clock a 15 percent CAGR between FY26 and FY28, materially higher than the industry’s expected 10.2 percent CAGR. Earnings are estimated to grow at a stronger 22 percent CAGR over the same period, supported by premiumization, innovation-led product expansion, and strategic initiatives such as the “Global South” export push and scaling up manufacturing in India.
While risks persist, including rising competition from global and Chinese players and potential margin pressure from commodity cost inflation, the long-term thesis remains intact. Despite a 61 percent YoY decline in Q3 net profit to Rs 89.7 crore due to elevated operating expenses, the outlook remains constructive, anchored in structural demand recovery and operating leverage benefits over time.
LG Electronics India Limited (LGEIL) was established in January 1997 in India. It is focused on various consumer electronics and B2B businesses, from home appliances and media entertainment to HVAC and commercial displays. LGEIL’s manufacturing units at Greater Noida and Ranjangaon, Pune has the capacity to manufacture LED TVs, air conditioners, commercial air conditioning systems, washing machines, refrigerators, and monitors.
Financial Highlights: The revenue from operations declined by 6 percent to Rs 4,114 crore in Q3 FY26 from Rs 4,396 crore in Q3 FY25, and EBIDT fell by 42 percent to Rs 196 crore in Q3 FY26 from Rs 340 crore in Q3 FY25. Accompanied by a net profit decline of 62 percent to Rs 89.7 crore in Q3 FY26 from Rs 233 crore in Q3 FY25, resulting in an EPS decline of 62 percent to Rs 1.32 per share in Q3 FY26.
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