LG Electronics 'Plugged For Growth': Brokerages Initiate Bullish Coverage — Check Target Price

Brokerages are broadly positive on LG Electronics India Ltd., highlighting its strong market position, diversified product portfolio and consistent profitability. Both JPMorgan and BofA expect the company to benefit from rising consumer discretionary spending and long-term structural demand for home appliances in India.

JPMorgan has initiated coverage with an 'Overweight' rating and a target price of Rs 1,920, while BofA has started with a Buy call and a target price of Rs 1,840. Despite slight differences in estimates and valuation multiples, both agree that LG Electronics is well placed to capture India’s fast-expanding consumer durables opportunity.

Both brokerages highlight that India is becoming a strategic market for LG, supported by its strong brand equity and leadership across categories such as refrigerators, washing machines, televisions and air-conditioners. The company’s wide distribution footprint, localised innovation and access to global R&D are seen as key strengths that help it stay ahead of competition.

Growth drivers identified by both brokerages include product diversification, broader participation across mass and premium segments, and an increasing push into B2B, services and exports. The upcoming Andhra Pradesh manufacturing facility and rising localisation levels are expected to aid scale and improve cost competitiveness over time. Both JPMorgan and BofA forecast around 12% revenue CAGR over the next three to four years, driven by deeper penetration, premiumisation and new category expansion.

Profitability is another area where both brokerages find the company attractive. LG Electronics enjoys industry-leading margins and high return ratios, supported by premium mix, efficient working-capital management and strong execution. While fiscal year 2026 may see some pressure due to softer summer demand and higher input costs, both expect margins to improve gradually as growth revives, localisation increases and logistics costs normalise. ROE and ROCE are projected to remain superior versus peers, even as capex rises to support expansion.

However, both firms flag risks such as increased competition, particularly from Chinese brands, fluctuating consumer sentiment, commodity cost pressures, and delays in new product introductions. Higher loyalty payments or any escalation in contingent liabilities are also highlighted as potential concerns.