Targets and highlights
- Motilal Oswal — TP ₹1,800: Buy, citing premium positioning, strong cash conversion, localization tailwinds, and leadership across key white goods; values on higher multiples given returns and OCF.
- ICICI Securities — TP ₹1,700: Buy, anchored on distribution depth, backward‑integrated manufacturing, high core RoE and FCF, and premiumisation runway; sees durable share gains.
- Antique Stock Broking — TP ₹1,725: Buy, pointing to innovation‑led portfolio and distribution scale supporting growth in home appliances and consumer electronics.
- Prabhudas Liladher (PL Capital) — TP ₹1,780: Buy, highlighting category leadership in premium segments and operating leverage from scale and localization.
- Equirus Capital — TP ₹1,705: Buy, constructive on brand strength, diversified mix, and execution consistency across large appliances.
- Emkay Global — TP ₹2,050: Buy, the Street‑high TP, premised on India pivot in LG’s Global South strategy, B2B push (HVAC/displays), export scale‑up with a third plant, and localised innovation; valued at 50x Sep‑27E PER, a 10% premium to Havells.
- Ambit Capital — TP ₹1,820: Buy, noting premium brand equity, leadership across categories, and structural margin supports from localization and service revenues.
- Nomura — TP ₹1,800: Buy, modelling ~10% revenue CAGR FY25–28; margin resilience from localization, strong general trade mix, and operating leverage.
The common bullish threads
- Premium brand, “masstige” expansion: Scope to widen addressable market while protecting brand equity in premium categories.
- Localization and scale: Backward integration and domestic sourcing enhance margins and supply resilience, with operating leverage as volumes ramp.
- Category leadership: Top shares in TVs, refrigerators, washing machines, and room ACs provide pricing power and steady mix.
- Emerging growth vectors: B2B HVAC/displays and exports tied to capacity adds offer incremental runway beyond core retail categories.
What to watch near term
- Post‑listing stabilization: After a 50% premium debut near ₹1,710, watch anchor/QIB flows and margin commentary into the first results cycle.
- Execution on capacity and exports: Timelines on the third plant and export contribution mix will inform whether Street‑high targets are sustainable.
- Input costs and FX: Commodity and currency moves can sway margins despite localization efforts; monitor hedging and pricing actions.
It’s interesting to see how the wide range of price targets from various analysts all point to a similar confidence in LG’s strategy. The focus on localization and innovation should give LG a solid foundation to expand its market share, particularly in both the B2B and premium B2C segments.
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