Synopsis: Jefferies recommends a Buy on LG Electronics India with a ₹1,910 target, driven by strong AC demand, price hikes supporting margins, and limited export exposure, ensuring a stable growth outlook.
This Large-cap Consumer Durables stock, engaged in manufacturing and selling consumer electronics, home appliances, and air conditioning solutions, focusing on innovation, quality, and energy efficiency, in focus after Jefferies gave a Buy target of Rs. 1,910, which has an upside potential of 27.79 percent.
With a market capitalization of Rs. 1,01,449.32 crore, the shares of LG Electronics India Limited were currently trading at Rs. 1,494.60 per equity share, down nearly 1.08 percent from its previous day’s close price of Rs. 1,510.95.
Reason Behind the Surge
Jefferies, a prominent brokerage firm, has recommended a “Buy” call on LG Electronics India Limited with a target price of Rs. 1,910 per share, indicating an upside potential of 27.79 percent from its current price of Rs. 1,494.60 per share.
Jefferies maintains a Buy rating on LG India, supported by strong demand trends. The summer season has started well, with higher demand for air conditioners boosting sales momentum. This early demand indicates a positive outlook for the coming quarters, especially as cooling products remain a key revenue driver for the company.
The company has already implemented price hikes of 7-9 percent in premium AC categories, and further increases of 5-10 percent are expected due to a weak rupee and rising input costs. These price hikes are likely to support margins despite cost pressures, helping maintain profitability.
While LPG shortages remain a concern for the industry, LG India is exploring alternatives to manage the risk. Additionally, exports contribute only 6 percent of total sales, with limited exposure to the Middle East, reducing external risks and supporting stable growth expectations.
Q4 FY26 Outlook
LG expects a positive shift in customer demand with the launch of its new BEE-rated product range. The company is already seeing healthy demand across categories, especially for compressor-based products like air conditioners, which are expected to grow further during the summer season. This reflects rising interest in energy-efficient and reliable appliances.
To support this growth, LG is following a two-track strategy. It is expanding its premium product range while also strengthening its LG Essential lineup to reach more customers. Recent launches include a 0.9-ton room air conditioner, 2-ton 5-star ACs, and the new VX washing machine range. At the same time, LG continues to focus on innovation and cost control to ensure steady and profitable long-term growth.
Company Overview
LG Electronics India Limited (LGEIL) is the Indian subsidiary of LG Electronics, headquartered in New Delhi and Noida. Established in 1997, it is a leading manufacturer and marketer of consumer electronics and home appliances across India. The company plays a pivotal role in LG’s global operations, anchoring its presence in South Asia and supporting the “Make in India” initiative.
Recent Quarter Results
Coming into financial highlights, LG Electronics India Limited’s revenue has decreased from Rs. 4,396 crore in Q3 FY25 to Rs. 4,114 crore in Q3 FY26, which is a drop of 6.41 percent. The net profit has also decreased by 61.37 percent from Rs. 233 crore in Q3 FY25 to Rs. 90 crore in Q3 FY26.
LG Electronics India Limited’s revenue and net profit have grown at a CAGR of 13.12 percent and 23.31 percent, respectively, over the last three years.
In terms of return ratios, the company’s ROCE and ROE stand at 56.8 percent and 45.2 percent, respectively. LG Electronics India Limited has an earnings per share (EPS) of Rs. 32.5, and its debt-to-equity ratio is 0.07x.
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