Updated Feb 18, 2026 11:18 IST
Goldman Sachs has initiated its coverage on LG Electronics India with a ‘buy’ rating…
highlights
- Goldman Sachs has given a target of ₹ 1,750 on LG Electronics with BUY rating.
- This shows about 13% upside from LG Electronics India’s current level.
- The brokerage is confident of the company’s premium positioning, innovation and long-term growth prospects.
LG Electronics Share Price: Brokerages continue to have confidence in the country’s electronics giant LG Electronics India. Global brokerage firm Goldman Sachs has initiated its coverage on LG Electronics India with a ‘buy’ rating and a target price of ₹1,750 for the stock. The stock closed at ₹ 1,551.15 on BSE on Tuesday, so according to the brokerage it is showing a profit of about 13%.
Brokerage Opinion on LG Electronics
Goldman Sachs believes that LG Electronics India is a market leader across multiple categories in the home appliances and consumer electronics segments. The company’s strong premium positioning and brand values differentiate it from its competitors. According to the brokerage, due to change in earnings and increase in product penetration, the company can register faster growth than the industry.
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The report also said that the company’s innovation track record and ‘Global South’ strategy will help in increasing exports and scale. However, scope for a big jump in margins may remain limited due to increased competition and commodity price pressures. Goldman has estimated the company’s valuation at around 44 times based on FY28E EPS.
Big decline in profits in quarterly results
On Wednesday, the company released its December quarter (Q3FY26) results. During this period, net profit fell by 61.58% on an annual basis to ₹ 89.67 crore, which was ₹ 233.45 crore in the same period last year.
Revenue from operations remained almost flat at ₹4,114.4 crore, compared to ₹4,395.53 crore last year. Total expenditure declined by 2.77% to ₹4,038.36 crore. The company said Home Appliances and Air Solutions segment revenue declined 9.8% to ₹2,788.09 crore due to softening in demand post Diwali. The home entertainment segment, however, recorded a modest growth of 1.6%. The segment received initial support from the reduction in GST rates, with revenues remaining around last year’s levels.
What is the further strategy?
The company has said to focus on ‘two-track strategy’ for Q4 FY26. This includes expanding the premium portfolio and strengthening the line-up through new product launches.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.
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