- LG Electronics India benefits from strong parentage with LG Electronics Inc., South Korea
- The company commands market leadership in washing machines, refrigerators, TVs, and ACs
- Revenue CAGR of 13% over FY22-25 with debt-free status and operational efficiency
LG Electronics' strong parentage with LG Electronics Inc., South Korea, a global leader in consumer electronics and home appliances, provides an unmatched access to worldclass R&D, innovation, design expertise, and supply chain synergies. This association, for which LG Electronics pays a modest royalty of ~2.3-2.4% of revenues for authorized products (blended royalty rate: ~1.8-1.9%), ensures consistent technological superiority and brand credibility in the Indian market.
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Dolat Capital Report
We initiate coverage on LG Electronics India Ltd. with an ‘Accumulate' rating and target price of Rs 1,855, valuing the stock at 42x FY28E EPS. LG Electronics stands as one of India's most trusted consumer durable brands, offering a wide product portfolio and commanding market leadership across key categories such as washing machines, refrigerators, panel TVs, and inverter ACs.
We believe that the company is well-positioned for growth, supported by-
its large distribution network,
advanced manufacturing and product innovation capabilities and
strong parentage.
LG Electronics aims to further strengthen its presence through capacity expansion, scale-up of B2B and export businesses, and continued premiumization.
The company exhibited revenue CAGR of 13% over FY22-25, with industry-leading Ebitda margins and superior return ratios. Moreover, LG Electronics maintains a debt-free status, which reflects its prudent capital allocation and operational efficiency.
We bake in revenue/Ebitda/PAT CAGR of 11%/10%/11% over FY25-28E.
With better revenue mix and operational efficiencies, we expect Ebitda margins to expand to 12.6% by FY28E.
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