LG Electronics India (LGEL IN) – Company Initiation – Positioned for sustainable growth – BUY
Published on 14 Oct 2025
We initiate coverage on LG Electronics India Ltd (LGEL IN) with ‘BUY’ rating and TP of Rs1,780 valuing at 42x FY28E earnings. LGEL is a key player in the consumer electronics and home appliances market, offering a diverse product portfolio with a strong focus on innovation and quality. Extensive distribution network and premium brand positioning ensure its market leadership across categories. We believe LGEL is well-positioned to capitalize on the growth opportunities in home appliances and consumer electronics given its 1) market leadership across products, 2) strong manufacturing capabilities, 3) diverse product portfolio, and 4) strong brand loyalty. Further, LGEL has leading market share in the premium category of Washing Machine (36.9%), Refrigerator (43.2%), RAC (27.2%) and TV (62.9%). It has a track record of launching multiple industry firsts – an outcome of its consistent focus and industry leading R&D spends. We estimate revenue/EBITDA/PAT CAGR of 9.9%/10.9%/9.3% over FY25-28E led by 1) healthy revenue growth across segments, 2) capacity expansion plans, 3) expansion of AMC & B2B businesses, and 4) focus on local RM sourcing. Initiate ‘BUY’.
