Synopsis:- A brokerage has given a ‘Buy’ rating with a ₹1,750 target price, implying about 12% upside from ₹1,560. The company plans ₹50 billion capex, aims to raise localisation from 54% to 63%, and holds strong market shares, including 33% in washing machines and 17.3% in air conditioners.
India’s household appliances sector thrives amid urbanisation and rising incomes. In FY26 Q1, sector revenues held flat at Rs 273 billion despite summer demand dips, with electrical appliances up 4% to Rs 166 billion. Projections show the market hitting USD 54.6 billion for full FY26, growing at 5.65% CAGR through 2031. Premium and smart products fuel this expansion.
With a market capitalisation of Rs 1,05,932.61 crore, the shares of LG Electronics India Ltd trade around at Rs 1,560.65 per share, decreasing around 2 percent as compared to the previous closing price of Rs 1592.30 apiece.
Future Growth Drivers
As per the brokerage, LG Electronics India continues to dominate the consumer durables market with a strong presence across major categories. It expects revenue growth to accelerate to 14–16% over the next five years, driven by the rollout of the LG Essential series targeting economy consumers in Tier II and Tier III cities.
In addition, the company plans to increase localisation levels from 54% to 63% over the next four years, supported by backward integration into key components like compressors and PCBs. A Rs 50 billion capex investment at the Sri City, Tamil Nadu facility is also planned to expand capacity across appliances and components.
The brokerage further expects earnings to grow at a CAGR of around 18% between FY26 and FY28, while EBITDA margins may improve to above 12% from 11.4%. Exports could also increase to 10–12% of total sales, though risks like slower demand and rising competition remain.
Elara Capital has issued a ‘Buy’ rating on a household appliances manufacturer with a target price of Rs 1,750 per share. Compared to the current price of Rs 1,560.65, the brokerage sees a potential upside of about 12%, reflecting a positive outlook on the company’s growth prospects.
LG Electronics reported revenue of ₹27.88 billion in its Home Appliance and Air Solution segment with an EBIT margin of 4%, impacted by higher copper, aluminium, and forex costs. Despite margin pressure, the company maintained strong market leadership with 33% share in washing machines, 30% in refrigerators, and 17.3% in air conditioners, while premium products like side-by-side refrigerators reached 43.3% market share.
LG Electronics India Limited is one of India’s leading consumer durables manufacturers, offering products such as air conditioners, refrigerators, washing machines, televisions, and home appliances. The company focuses on innovation, localisation, and premium technology while expanding its presence across urban and emerging markets through a strong distribution network.
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