LG Electronics India (LGEL.NS): Management Meeting Takeaways from Citi India Consumption Tour

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LG Electronics India (LGEL.NS): Management Meeting Takeaways from Citi India Consumption Tour

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18 Jun 2026 09:10:09 ET │ 12 pages

LG Electronics India (LGEL.NS)

Management Meeting Takeaways from Citi India Consumption Tour

CITI’S TAKE

We hosted LG Electronics India (LGEL) management as part of the Citi

Buy India Consumption Tour. Key takeaways: (a) category demand is broadly

Price (18 Jun 26 15:30) Rs1,607.60 healthy across ACs, washing machines, and TVs, while refrigerators

remain relatively slower; (b) RAC sell-out was very strong in April and May, Target price Rs1,800.00

helped by favourable temperature, normalized channel inventory, though Expected share price return 12.0%

primary growth may lag secondary given seasonality and dealer caution; Expected dividend yield 2.5%

(c) LG has taken price hikes ahead of most peers to cover BEE transition, Expected total return 14.5%

commodity, FX, and management remains focused on protecting margins Market Cap Rs1,091,194M

while broadly maintaining market share; (d) premiumization remains a key

US$11,521M advantage, especially in RAC and TVs; (e) Essential series is aimed at

entry/first-time buyers in Tier 2–3 markets without diluting margins.

Demand and category trends: Management indicated that all categories are Ashish Kanodia, CFAAC

performing broadly well. RAC saw a strong sell-out – April and May were both strong +91-22-6175-9805

for RAC secondary sales, while June so far has been relatively softer. The key nuance ashish.kanodia@citi.com

is that strong secondary may not immediately translate into equally strong primary,

as by June dealers are typically cautious on fresh stocking given the AC season is

largely done. Management noted that Jan–Mar typically accounts for ~50–55% of