LG Electronics India First Take: Q4 - In-line operational print; Outlook supported by summer demand and export opportunity

研报英文原文证据摘录

LG Electronics India First Take: Q4 - In-line operational print; Outlook supported by summer demand and export opportunity

Latika Chopra, CFA AC Asia Pacific Equity Research

(91-22) 6157-3584 22 May 2026 J P M O R G A N

latika.chopra@jpmorgan.com

Investment Thesis, Valuation and Risks

LG Electronics India (Overweight; Price Target: Rs1,620.00)

Investment Thesis

LGEL offers best-in-class superior execution enabled by a diversified portfolio, wide

distribution footprint (across channels), high innovation intensity (customized to localized

needs), access to global tech/R&D capabilities, a well-entrenched service network, a well-

regarded leadership team and strong brand equity (market leadership across categories:

Refrigerators, Washing Machines, TVs and RAC). Following a soft 9MFY26 (although

ahead of peers), we expect gradual improvement in the growth trajectory enabled by macro

tailwinds (GST/interest/income tax rate cuts) and its own efforts towards expanded product

range, sustained share gains, tapping into exports/B2B opportunities, and scaling up

distribution reach. Margins should trend up from FY26E lows, led by growth revival,

sustained localization efforts and premium mix.

Valuation

Our Mar-27 price target is Rs1,620, based on a one-year forward P/E multiple of 45x, at a

10% premium to peers. In our view, LGEL deserves to trade at a premium given its more

diversified portfolio, access to the global technology of its parent, premium positioning

(market leadership), well entrenched distribution and service network, market share

strength, and superior return profile, along with optionality to foray into categories of the

future.

Risks to Rating and Price Target

Key risks include: (1) steep competitive intensity; (2) weak consumer sentiment; (3)