LG Electronics Eyes Market Share Gains Amid Near-Term Demand Challenges, Says ICICI Securities— Details Inside

LG continues to strengthen its position in the room AC market, particularly in 5-star inverter ACs. It now holds leadership position in the 5-star RAC category. The refrigerator category saw some demand softness due to weaker consumer sentiment..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.ICICI Securities remains positive on LG Electronics India Ltd. given its sustained market leadership across categories and backward integration. While near-term demand is expected to remain soft due to weak primary and secondary sales post-festive season, the brokerage sees structural strengths supporting medium-term growth.Recent GST cuts in air conditioner, television and dishwashers have helped to drive volumes, but demand has slowed down after festivals..The brokerage highlights-Price hike of 8–10% in 5-star ACs could happen due to new BEE norms.LG gained market share in 5-star RACs and refrigerators, even in a weak demand environment.The company’s channel inventory is relatively placed better than peers, although higher YoY.LG has rationalised various promotional schemes to support margin.The Essential series is gaining traction and supports revenue visibility.The company plans to launch chest freezers by H1 FY27 and would leverage its existing distribution network.The brokerage remains positive on the back of the company’s premium positioning, sustained market share and backward integration..ICICI Securities maintains Buy with a DCF-based target price of Rs 1,875; implied target P/E at 45x FY28E earnings per share..Key risks:Steep increase in commodity prices; and material increase in competitive pressures..Click on the attachment to read the full report:.TCS A 'Buy' Due To Undemanding Valuations, Says Motilal Oswal — Check Target Price, Potential Upside And More.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

LG Electronics Eyes Market Share Gains Amid Near-Term Demand Challenges, Says ICICI Securities— Details Inside

The brokerage remains positive on the back of LG’s premium positioning, sustained market share and backward integration.

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