Buy LG Electronics India; target of Rs 2080: Motilal Oswal

The latest market report highlights that Motilal Oswal's research report on LG Electronics India

Our recent interaction with LG Electronics India (LGEIL) management suggests healthy topline expansion 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 expansion, while refrigerator expansion 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 firm has announced a ~5-6% price hike in AC, effective 1st Oct’26, to mitigate elevated input cost pressure. No price hikes have been announced so far in other product categories, in which prices are anticipated to stay largely stable. New product launches and increasing SKUs in the value-fuelled Essential series should backing portfolio expansion and market penetration.

We estimate mid-teen topline expansion 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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