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HDFC Securities initiates coverage on LG Electronics India Ltd. with an ‘Add’ rating and a target price of Rs 1,545 per share, valuing the company at 38 times Mar‑28E AEPS. The brokerage highlighted LG’s well-established market leadership, strong brand equity, and a consistent track record of innovation and premium product launches across its core categories.
LG remains one of India’s dominant consumer durables players, with leading positions in washing machines, refrigerators, panel televisions, and inverter air-conditioners. According to the brokerage, the company’s ability to leverage the wider LG Group ecosystem including global R&D capabilities, advanced manufacturing practices, and automation frameworks has allowed it to maintain operational efficiency while continuously introducing first‑in‑industry technologies.
HDFC Securities noted that LG India’s healthy balance sheet, robust return ratios, and low working capital requirements further bolster the company’s business quality. These fundamentals, combined with a strong launch pipeline and a stable demand environment in key categories, position LG well for steady growth.
The brokerage expects revenue / Ebitda / adjusted profit after tax to grow at a CAGR of 8% each over FY25–28E, driven by premiumisation trends, product mix improvement, and operational discipline. Overall, HDFC Securities believes LG Electronics India is well‑placed to steer through an evolving consumer landscape with a combination of leadership and innovation.
Intense competition, Industry seasonality and slowdown, Dependence on promoter (LG Electronics, Korea), raw material price volatility, supplier concentration are few risks for the stock, highlights the brokerage.
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