Morgan Stanley has initiated coverage on LG Electronics India with an overweight rating and a target price of ₹1,864, highlighting the company’s strong positioning across several consumer durables categories. The brokerage said LG stands out in a highly competitive market due to its industry-leading margins and best-in-class capital efficiency, making it one of the more structurally attractive players in the sector.
According to Morgan Stanley, revenue and margin expansion will be driven by the company’s new manufacturing capacity and a rising contribution from exports and B2B verticals. The brokerage expects earnings to decline 9% year-on-year in FY26, primarily due to trends in the air conditioners segment, but forecasts a robust 16% earnings CAGR over FY26–28. Morgan Stanley has valued the company using a 50x P/E multiple applied to its September 2027 earnings estimates.
The brokerage added that LG Electronics India remains well positioned to benefit from premiumisation and export-led scale efficiencies over the medium term.
Disclaimer: The views above are those of Morgan Stanley. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
