Shares of LG Electronics India surged 6.14% to a record high of ₹1,825 on October 5, extending investor interest after brokerages maintained a positive outlook on the consumer electronics company.
Motilal Oswal Financial Services (MOFSL) expects double-digit growth in LG Electronics’ television, washing machine and air-conditioner businesses during Q2 FY27, while refrigerator growth is likely to remain in the low single digits.
The brokerage expects margins to improve year-on-year, supported by premiumisation, a better product mix and higher localisation. LG Electronics has also announced a 5-6% price hike for air conditioners from October 1 to offset higher input costs.
MOFSL sees localisation, capacity expansion at Sri City, B2B growth and exports as key medium-term growth drivers. Compressor production at the facility is expected to begin in Q3 FY27, followed by AC manufacturing in Q4 FY27.
The brokerage estimates revenue, EBITDA and PAT to grow at compound annual rates of around 14%, 24% and 25%, respectively, between FY26 and FY29. It retained its Buy rating with a target price of ₹2,080.
Nuvama Institutional Equities also expects a strong quarter, supported by television and washing machine sales and price actions. It has a target of ₹1,990.
Meanwhile, JM Financial expects Q2 FY27 revenue to rise 15% year-on-year to ₹7,100 crore, with EBITDA margin estimated at 9.5%.
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