Jefferies has initiated coverage on LG Electronics India with a buy rating and a target price of ₹1,900, calling the company one of the strongest plays on India’s discretionary spending cycle. The brokerage highlighted LG’s diversified presence across product categories, strong brand recall, leadership in premium consumer appliances and robust backward integration, all of which collectively provide enduring competitive moats.
According to Jefferies, LG Electronics India benefits from entrenched distribution channels and a broad portfolio that positions it well to capture the next leg of demand growth as urban consumption rises. The brokerage added that the company’s balance sheet strength, supported by substantial cash reserves, provides ample room for future expansion and investment across categories.
Despite these advantages, Jefferies noted that LG trades at 43x FY27 estimated earnings—still a 10–15% discount to peers such as Havells and Blue Star. The brokerage believes the valuation gap could narrow as earnings delivery accelerates and as the company sustains its industry-leading margins and return ratios.
Disclaimer: The views above are those of Jefferies. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
