LG Electronics share price: Brokerage firm Nuvama has maintained its Buy rating on LG Electronics India and raised its target price to Rs 1,990 from Rs 1,910 earlier. The brokerage sees further growth potential for the consumer electronics company, supported by domestic demand, premium products and expanding exports.
LG Electronics share price target
The brokerage’s latest view came after its interaction with the company’s management. Nuvama said the outlook remains positive as demand for televisions, washing machines and air conditioners continues to support the domestic business.
Premium products to support growth
One of the key factors behind Nuvama’s positive view is the increasing contribution from premium products.
The brokerage noted that higher sales of premium appliances, along with localisation and price increases, could help LG Electronics manage the impact of rising component and commodity costs.
The company has also reiterated its expectation of mid-teen revenue growth in FY27 and operating margins moving into the early double-digit range.
Exports emerge as another growth driver
LG Electronics is also looking to increase the contribution of exports to its overall business.
Its international presence has also expanded, with the company now operating across 65 countries, compared with 47 countries around the time of its IPO.
Premium TV and appliance demand remains strong
Domestic demand has also shown encouraging signs. According to the report, the company saw positive trends during July and August, while the Onam season also remained strong.
Washing machine, dishwasher sales rise
The company’s washing machine business has also benefited from premiumisation. Sales of fully automatic top-load washing machines increased by around 50 per cent, while dishwasher sales grew nearly 75 per cent YoY.
LG Electronics increases prices
To manage higher input costs, LG Electronics has increased prices across various product categories by around 7-12 per cent.
The company’s strategy is focused on protecting margins rather than relying on price cuts to compete. Nuvama believes that premiumisation, higher localisation and market-share gains could support both revenue growth and profitability.
(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
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