Buy LG Electronics India; target of Rs 1700: ICICI Securities

ICICI Securities is bullish on LG Electronics India recommended buy rating on the stock with a target price of Rs 1700 in its research report dated October 14, 2025.

Broker Research

October 14, 2025 / 10:58 IST

buy

26 Aug, 2025 12:21

Volume

Todays L/H

ICICI Securities research report on LG Electronics India

We initiate coverage on LG Electronics India (LG) with a BUY rating as: (1) It has developed strong competitive advantages such as LG brand with premium positioning, established distribution network, and multiple manufacturing units in India with strong backward integration capabilities. (2) Its share-of-voice is higher than that of peers, indicating potential for market share gains. LG is also investing in strengthening its distribution network and we model this to act as a key competitive advantage and growth driver. (3) It has generated strong return ratios and FCF over FY14-25. Core RoE (ex-cash and tax adjusted other income) is >90%. (4) It is market leader in most white goods it operates in and is beneficiary of premiumisation trend. (5) Revenue contribution of LG India to parent’s revenue rose from 3.5% in CY21 to 4.3% in CY24, highlighting the growing importance of the Indian business to the parent.

Outlook

We model LG India to report revenue/PAT CAGR of 9.3%/7.9% over FY25–28E. We initiate coverage on the stock with a BUY rating and a DCF-based target price of INR 1,700 (implying 45x FY27E and 42x FY28E earnings). Key risks: Steep competition, delay/ failure in launch of new products, and rapid technological changes.

For all recommendations report, click here