LG Electronics India Limited: Risk Reward Update

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LG Electronics India Limited: Risk Reward Update

UpdateM

RiskRisk RewardReward– LG Electronics- LG ElectronicsIndia Limited (LGEL.NS)India Limited (LGEL.NS)

Top-tier Durable Franchise

PRICE TARGET Rs1,610.00 OVERWEIGHT THESIS

Base case, derived from a target P/E of 45x applied to our earnings estimate for March 2028. ▪LGEIL has demonstrated its execution

This multiple is benchmarked to the average P/E of LGEIL's Indian consumer prowess by sustaining its market leadership

discretionary, retail and consumer durables peers. We use this cohort in our valuation across many categories in a highly

framework given both consumer discretionary and retail along with durable companies have competitive Indian market.

many similar macro drivers (rising disposable income, rising urbanization, etc.). ▪We like LGEIL's disciplined focus on

margins (industry-leading) and large sales Rs1,761.19

network.

Consensus Price Target Distribution Rs1,527.00 Rs1,900.00 leverages its global parentage for MS PT ▪LGEIL

Source: Refinitiv, Morgan Stanley Research Mean Morgan Stanley Estimates technology and innovation.

▪It has an efficiently run business model

evidenced by its healthy cash flow

generation.

RISK REWARD CHART ▪Our OW rating relative to our coverage

reflects LGEIL's strong moats of resilient

INR Rs2,271.00Rs2,271.00(+52.36%)Rs2,271.00(+52.36%)(+52.36%) business model, strong market leadership

across key categories, industry-leading

margins and best-in-class capital efficiencies.

Consensus Rating Distribution

Rs1,610.00Rs1,610.00(+8.02%)Rs1,610.00(+8.02%)(+8.02%)

1500 Rs1,490.50Rs1,490.50Rs1,490.50 92% Overweight

4% Equal-weight

4% Underweight

MS Rating

Rs832.00Rs832.00(-44.18%)Rs832.00(-44.18%)(-44.18%) Source: Refinitiv, Morgan Stanley Research

Risk Reward Themes