Buy LG Electronics India; target of Rs 1860: Motilal Oswal

Motilal Oswal is bullish on LG Electronics India recommended buy rating on the stock with a target price of Rs 1860 in its research report dated March 02, 2026.

Broker Research

March 04, 2026 / 12:31 IST

Buy

Motilal Oswal's research report on LG Electronics India

Our recent interaction with LG Electronics India (LGEIL) management suggests that LGEIL continues to gain market share across key categories despite mixed industry trends, with refrigerators growing marginally against a 1.5-2.0% industry decline and TVs delivering 6.4% growth vs. 3.8% growth for the industry. In RAC, LGEIL outperformed with a lower volume decline (~4% vs. ~6% industry). The strong growth is being driven by premiumization and deeper portfolio expansion, with the entry into five-star two-ton, sub-one-ton, and fixed-speed AC segments, significantly widening its addressable market across price and capacity bands. It has implemented calibrated price hikes across categories to offset cost pressure. The company is also scaling adjacencies – AMC, B2B and export businesses. We estimate LGEIL’s revenue/EBITDA/PAT CAGR at 10%/22%/23% over FY26-28.

Outlook

The stock trades at 46x/39x FY27/FY28E EPS. We value LGEIL at 45x FY28E EPS to arrive at our TP of INR1,860. Reiterate BUY.

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