Motilal Oswal's research report onLG Electronics India
Our recent interaction with LG Electronics India (LGEIL) management suggests healthy revenue growth momentum across key segments, aided by healthy consumer demand and its premiumization strategy. Television (TV), washing machine and air conditioner (AC) segments are estimated to clock double-digit growth, while refrigerator growth is estimated in low-single digits. Margin is likely to improve on a YoY basis, backed by a richer product mix, premiumization and increased localizations. The company has announced a ~5-6% price hike in AC, effective 1st Oct’26, to mitigate higher input cost pressure. No price hikes have been announced so far in other product categories, in which prices are expected to remain largely stable. New product launches and increasing SKUs in the value-driven Essential series should support portfolio expansion and market penetration.
We estimate mid-teen revenue growth in Home Appliances & Air Solution and Home Entertainment, and a gradual margin expansion in FY28/29 by 70bp/40bp to 13% (similar to FY25). We reiterate BUY with a TP of INR2,080, based on 45x Sep’28E EPS. At CMP, the stock trades at 40x FY28E EPS.
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