LG Electronics India shares rise 4% as JPMorgan, Morgan Stanley initiate coverage with 'overweight'

LG Electronics India shares rise 4% as JPMorgan, Morgan Stanley initiate coverage with 'overweight'

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26 Aug, 2025 12:21

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Shares of LG Electronics India rose 4% to Rs 1,691 apiece on November 19 as global brokerages JPMorgan, Morgan Stanley initiated coverage on the recently-listed company with "overweight" rating.

JPMorgan gave price target of Rs 1,920 for the stock, which implies up to 18% upside from November 18 close, and said India remains one of LG Electronics' key overseas markets, contributing 4.3% to global revenue in 2024 and accounting for a significantly higher share of profits due to stronger margin performance.

The appliance & consumer electronics maker's penetration into both value and premium market segments, wide distribution channels and a well-entrenched service network will provide a long runway for growth, it said.

JPMorgan sees revenue growth of 12% over FY26-28 and margins rise up from H126 lows to 12%/13% YoY in FY27/28 led by growth revival and sustained localisation efforts.

The stock has been trading 2% lower since its October 14 listing.

Meanwhile, Morgan Stanley gave a price target of Rs 1,864 per share, which represents up to 15% upside from November 18 close.

LG Electronics stands out across categories in a competitive consumer durables market. Its revenue and margin will be driven by new capacity, exports and B2B business, said Morgan Stanley.

While near-term FY26 earnings may dip, medium-term expansion and localisation efforts are expected to drive revenue, margins, and steady earnings growth through FY28, the brokerage said.

LG Electronics Q2 results

Last week, LG Electronics India reported a 27.3% fall in its net profit at Rs 389.43 crore in the September quarter of FY26.

The company had a net profit of Rs 535.70 crore during the July-September period a year ago, according to a regulatory filing from LG Electronics India.

Its revenue from operations was almost flat at Rs 6,174.02 crore in the September quarter of FY26. It was Rs 6,113.88 crore in the corresponding period a year ago.

Total expenses of LG Electronics India were Rs 5,728.95 crore, up 5% in the second quarter of FY26.

This was the maiden quarter results filing of LG Electronics India, part of South Korean Chaebol LG Electronics Inc.

In the first half (H1) of FY26, LG Electronics' total income was marginally down at Rs 12,591.17 crore.