LG Electronics: What Emkay says on Essential Series launch, target price post IPO listing
Emkay Global said LG’s latest ‘Essential Series’ marks its foray into the mass-premium segment, a move that will expand its addressable market from about 85 per cent to nearly 100 per cent.
- Oct 15, 2025,
- Updated Oct 15, 2025 8:58 AM IST
LG Electronics India's strong stock market listing on Tuesday coincided with the company’s announcement of its new ‘Essential Series’ product range, which Emkay Global believes will help LG expand its reach and accelerate its growth trajectory in India.
Emkay Global said LG’s latest ‘Essential Series’ marks its foray into the mass-premium segment, a move that will expand its addressable market from about 85 per cent to nearly 100 per cent. The new lineup — comprising double-door refrigerators, top-load washing machines, convertible microwave ovens, and compact 0.8-ton air conditioners — has been developed using local insights and is value-engineered to make products more accessible without compromising LG’s signature quality and customer experience.
According to the brokerage, the new products are expected to be priced 15–20 per cent lower than LG’s premium models, effectively targeting value-conscious consumers seeking premium features at affordable price points. Despite the lower prices, Emkay noted, LG has managed to maintain profitability through careful product design, cost optimisation, and efficient manufacturing.
The Essential Series will be available from November 2025 and will be distributed primarily through high-margin traditional and regional retail trade channels, as well as tier-2 and tier-3 towns. Emkay said this approach will ensure limited cannibalization of LG’s existing premium portfolio while broadening its customer base in smaller cities, which are increasingly driving India’s consumption story.
Emkay Global believes this launch reinforces LG’s accelerating growth strategy, not only in the mass-premium segment but also through its increasing focus on exports and B2B categories, in line with its global roadmap. The brokerage said LG’s strong brand equity, local manufacturing scale, and product innovation place it in a favourable position to capture rising demand across consumer electronics and home appliances.
Emkay maintained its ‘Buy’ rating on the stock, with a target price of Rs 2,050, valuing it at 50 times Sep-27E earnings, representing a 10 per cent premium to Havells. The brokerage expects LG India to deliver a 13 per cent revenue CAGR and 14 per cent EPS CAGR over FY26E–28E, backed by robust return ratios of 32 per cent RoE and 44 per cent RoCE by FY28E.
“The launch of the Essential Series is a calibrated move to address the fast-growing mass-premium category, complementing LG’s premium portfolio rather than competing with it. It reinforces our view that LG’s growth trajectory in India is accelerating,” Emkay said.
LG Electronics India's strong stock market listing on Tuesday coincided with the company’s announcement of its new ‘Essential Series’ product range, which Emkay Global believes will help LG expand its reach and accelerate its growth trajectory in India.
Emkay Global said LG’s latest ‘Essential Series’ marks its foray into the mass-premium segment, a move that will expand its addressable market from about 85 per cent to nearly 100 per cent. The new lineup — comprising double-door refrigerators, top-load washing machines, convertible microwave ovens, and compact 0.8-ton air conditioners — has been developed using local insights and is value-engineered to make products more accessible without compromising LG’s signature quality and customer experience.
According to the brokerage, the new products are expected to be priced 15–20 per cent lower than LG’s premium models, effectively targeting value-conscious consumers seeking premium features at affordable price points. Despite the lower prices, Emkay noted, LG has managed to maintain profitability through careful product design, cost optimisation, and efficient manufacturing.
The Essential Series will be available from November 2025 and will be distributed primarily through high-margin traditional and regional retail trade channels, as well as tier-2 and tier-3 towns. Emkay said this approach will ensure limited cannibalization of LG’s existing premium portfolio while broadening its customer base in smaller cities, which are increasingly driving India’s consumption story.
Emkay Global believes this launch reinforces LG’s accelerating growth strategy, not only in the mass-premium segment but also through its increasing focus on exports and B2B categories, in line with its global roadmap. The brokerage said LG’s strong brand equity, local manufacturing scale, and product innovation place it in a favourable position to capture rising demand across consumer electronics and home appliances.
Emkay maintained its ‘Buy’ rating on the stock, with a target price of Rs 2,050, valuing it at 50 times Sep-27E earnings, representing a 10 per cent premium to Havells. The brokerage expects LG India to deliver a 13 per cent revenue CAGR and 14 per cent EPS CAGR over FY26E–28E, backed by robust return ratios of 32 per cent RoE and 44 per cent RoCE by FY28E.
“The launch of the Essential Series is a calibrated move to address the fast-growing mass-premium category, complementing LG’s premium portfolio rather than competing with it. It reinforces our view that LG’s growth trajectory in India is accelerating,” Emkay said.