LG Electronics India saw its stock move higher in early trade today, gaining a little over 2% after Morgan Stanley initiated coverage on the company with an overweight rating and a target price of ₹1,864. As of 9:26 AM, the stock was trading 1.85% higher at ₹1,654.10.
The global brokerage highlighted that LG continues to hold a strong footing across multiple consumer durables categories and stands out in a fiercely competitive market because of its industry-leading margins and impressive capital efficiency. According to the report, this combination makes LG one of the more structurally attractive players in the Indian consumer electronics space.
Morgan Stanley believes that the company’s growth momentum will be shaped by its upcoming manufacturing capacities and a rising share of exports along with a strengthening B2B business. While the brokerage expects earnings to slip by around 9% year-on-year in FY26 due to trends in the air conditioners segment, it projects a strong earnings CAGR of nearly 16% over FY26 to FY28. The valuation has been derived using a 50x P/E multiple on LG’s estimated earnings for September 2027.
The brokerage also pointed out that LG Electronics India is well positioned to benefit from the premiumisation wave in consumer electronics, as well as scale efficiencies coming from export growth over the medium term.
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