Buy LG Electronics India; target of Rs 1808: Prabhudas Lilladher

Prabhudas Lilladher is bullish on LG Electronics India has recommended buy rating on the stock with a target price of Rs 1808 in its research report dated February 12, 2026.

Broker Research

February 13, 2026 / 11:43 IST

Buy

Prabhudas Lilladher's research report on LG Electronics India

Home Appliances & Air Solutions reported 9.8% YoY decline in revenue, with refrigerators and washing machines witnessing high single-digit YoY decline, while AC revenue remained largely flat. Segment margins contracted by 310bps YoY, impacted by rising commodity costs, operating deleverage, higher recycling compliance costs, and upfront AMC-related expenses. Despite the revenue softness, the company continued to gain market share across major categories on YTD basis. Home Entertainment reported 1.7% YoY revenue growth, driven by the Information Display business, while the TV segment remained flat YoY despite the GST reduction not translating into meaningful demand pickup. Segment margins declined by 390bps YoY, primarily due to execution of relatively low-margin Information Display orders during the quarter, which management expects to normalize going forward.

Outlook

We downward revise our FY27/FY28 earnings estimates by 5.3%/5.0% factoring in correction in margins due to recycling costs linked to compliance, upfront AMC costs & elevated fixed costs arising with operation of new plant. We estimate FY26-28E revenue/EBITDA/PAT CAGR of 11.5%/23.0%/21.0%. Maintain ‘BUY’ rating with revised TP of Rs1,808 (earlier Rs1,920) based on 45x FY28 EPS.

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