Shares of LG Electronics India Jump 4% as Global Brokerages Launch ‘Overweight’ Ratings

LG Electronics India Shares Rise 4% as Global Brokerages Begin Coverage With Overweight Ratings

LG Electronics India Shares moved higher by 4 percent to ₹1,691 on November 19 after global investment houses JPMorgan and Morgan Stanley initiated coverage on the newly listed appliance and consumer electronics company with an “overweight” rating. The positive commentary from both brokerages boosted investor sentiment, positioning LG Electronics India as a strong contender in the competitive consumer durables sector.

The bullish outlook was driven by the company’s deep penetration across value and premium market segments, its extensive distribution network, and a long-standing service ecosystem that provides a multi-year growth runway.

JPMorgan Calls LG Electronics India a Strong Long-Term Play

JPMorgan initiated its coverage with an “overweight” rating and assigned a price target of ₹1,920, implying an upside potential of nearly 18 percent from the previous close. The brokerage highlighted that India remains a critical overseas market for LG Electronics and contributes around 4.3 percent to the company’s global revenue in 2024—while accounting for a disproportionately higher share of global profits due to superior margins.

According to JPMorgan, LG Electronics India Shares reflect strong fundamentals backed by the company’s wide product range, strong market presence, and growing localisation. The firm expects the company to deliver revenue growth of 12 percent between FY26 and FY28, supported by rising consumer demand, scale benefits, and improved supply chain efficiencies.

JPMorgan further noted that margins are likely to rise from H1 FY26 lows, reaching 12–13 percent in FY27–FY28, driven by growth revival and continued localisation efforts aimed at reducing reliance on imports.

Despite the strong outlook, it pointed out that LG Electronics India Shares have been trading slightly lower—around 2 percent below issue price—since the stock listed on October 14.

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Morgan Stanley Says LG Electronics India Stands Out in Consumer Durables Market

In a similar tone, Morgan Stanley also initiated coverage with an “overweight” rating, assigning a price target of ₹1,864, which signals a potential 15 percent upside for investors. The brokerage said LG Electronics distinguishes itself across multiple categories in the intensely competitive consumer durables industry.

Morgan Stanley believes that the company’s long-term prospects will be driven by:

• New manufacturing capacity

• Expanding export footprint

• Growing B2B business verticals

The brokerage acknowledged that FY26 earnings may witness a marginal dip, but stressed that medium-term growth remains intact. It expects expansion strategies, localisation, and operating leverage to drive stronger revenue and margin performance through FY28.

Morgan Stanley underscored that the steady improvement in profitability and strategic investments make LG Electronics India Shares attractive from a valuation and growth standpoint.

LG Electronics India Q2 Results Reflect Transitional Quarter Post Listing

Last week, LG Electronics India posted its first quarterly results since going public, marking a mixed performance in the September quarter of FY26. The company reported a 27.3 percent decline in net profit, which fell to ₹389.43 crore from ₹535.70 crore a year earlier.

Its revenue from operations remained nearly flat at ₹6,174.02 crore, compared with ₹6,113.88 crore in the corresponding quarter of FY25. Meanwhile, total expenses climbed 5 percent to ₹5,728.95 crore, reflecting higher input costs and increased promotional spending.

This marked the maiden quarterly filing for LG Electronics India as a publicly listed entity under the umbrella of South Korea’s LG Electronics Inc. For the first half of FY26, the company’s total income stood marginally lower at ₹12,591.17 crore.

While the profit decline raised questions about near-term momentum, analysts believe that the results reflect a transitional phase, with much stronger performance expected in upcoming quarters as the company ramps up capacity, enhances localisation, and taps into festive demand cycles.

Market Outlook: Strong Growth Runway Ahead for LG Electronics India Shares

The upbeat assessments from JPMorgan and Morgan Stanley reaffirm the long-term potential of LG Electronics India Shares, particularly as India emerges as a crucial market for global consumer electronics brands. With growing demand for premium appliances, rising urbanisation, and increased discretionary spending, LG is well-positioned to capture a meaningful share of both mid-range and high-end categories.

The company’s strong distribution reach—spanning urban and rural markets—coupled with a wide service network, provides a competitive advantage that many peers continue to build toward. Its investment in manufacturing and localisation aligns with government policies aimed at promoting domestic production, further supporting margin expansion.

Despite short-term moderation in profits, analysts remain confident that LG Electronics India’s growth strategy, diversified portfolio, and operational scale will keep LG Electronics India Shares on a robust upward trajectory.

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