Buy LG Electronics India; target of Rs 1800: Motilal Oswal

BUY

Motilal Oswal's research report on LG Electronics India

High industry growth potential; holds leadership position: India’s home appliances and consumer electronics market (excluding mobile phones) is estimated to post a CAGR of ~14% over CY24-29. LG Electronics India (LGEIL), with its leadership across key product categories, is well-positioned to capitalize on this growth opportunity. The company plans to balance between premium and mass products as part of LG’s global strategy and aims for premiumization of mass products, which should help to improve affordability and, in turn, increase its customer base. Focus on export; higher B2B and AMC segment revenue: The company plans to raise its export share to ~10% by FY28E from 6% in FY25. It also aims to generate 14-15% of its revenue from the B2B segment over the next few years (vs. ~10% in FY25), noting that B2B margins are higher than those in the B2C segment. Further, LGEIL targets an over 25% YoY growth in AMC revenue for the next few years.

Outlook

We initiate coverage on LGEIL with a BUY rating and a TP of INR1,800, premised on 40x FY28E EPS.

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LG Electronics India - 14102025 - moti