LG Electronics share price target: Buy stock for 22% upside, says MOFSL

Motilal Oswal Financial Services Ltd (MOFSL) has maintained a 'Buy' rating on LG Electronics India Ltd, saying diversified portfolio, premiumisation and expansion across key appliance categories are key drivers for the company. The domestic brokerage suggested a target price of Rs 2,080 on the stock, implying a 22% potential upside.

MOFSL expects healthy growth across LG Electronics India's television, washing machine and air-conditioner businesses. It said the company's premiumisation strategy, new product launches and wider SKU offerings should support revenue growth. The brokerage also noted that LG Electronics India has announced a 5-6% price hike in air conditioners from October 1, while prices of other product categories are expected to remain largely stable.

On Thursday, LG Electronics India shares were trading 0.78% higher at Rs 1,734.15. The stock opened at Rs 1,720 apiece, against its previous day's closing value of Rs 1,720.80. It touched a high of Rs 1,743.55 and a low of Rs 1,704 so far.

The brokerage expects the company's revenue, Ebitda and PAT to clock a CAGR of around 14%, 24% and 25%, respectively, over FY26-FY29. It expects mid-teens revenue growth in the medium term, supported by stronger demand across televisions, air conditioners, washing machines and home entertainment products. It also expects margin expansion of 70 basis points to 1.3 percentage points in FY28-29.

LG Electronics India is also expanding its manufacturing footprint. At its Sri City facility, the company plans to increase compressor capacity, with manufacturing of compressors expected to begin in Q3FY27.

On the export front, Motilal Oswal said the company has expanded its footprint to more than 60 countries and expects export revenue growth of around 30% YoY. Its B2B business is also expected to contribute more strongly, with the brokerage estimating it could account for around 10% of revenue from about 8% currently.

MOFSL said it remains positive on LG Electronics India, citing its diversified product portfolio, strong brand franchise, multiple avenues for sustainable revenue growth and improving localisation. The brokerage valued the stock at 45x September 2028 EPS to arrive at a target price of Rs 2,080 and retained its Buy rating.