Stock to BUY: Nuvama initiates coverage on THIS 30-year-old consumer electronics brand, sees 25% upside - DETAILS inside

Stock to BUY, LG Electronics Share Price Target 2026: Brokerage firm Nuvama has initiated coverage on a company that has been operating in India’s household appliances sector for the past three decades, assigning it a Buy rating and indicating an upside potential of nearly 25 per cent from the current market price.

The stock is a constituent of the BSE Consumer Discretionary index and has a market capitalisation of approximately Rs 1,01,815.86 crore. The company in focus is LG Electronics India.

The brokerage has reiterated a positive outlook on the company, citing a strong growth trajectory for the consumer electronics brand. However, it has also highlighted certain risks that could weigh on the company’s outlook.

The share price of the stock settled 1.6 per cent higher, or Rs 23.4 up, at Rs 1,500 on Monday (April 14). (LG Electronics share price)

According to Nuvama, LG Electronics is a leader across key segments, including washing machines, refrigerators, room air conditioners, and televisions. The company also holds a dominant share in premium sub-segments, supported by strong brand equity, continuous innovation, and a deep distribution network.

Nuvama expects the company to deliver a revenue/EBITDA/PAT CAGR of 12 per cent / 19 per cent / 19 per cent over FY26–FY29, driven by expansion in exports, enterprise (B2B) offerings, and its Essentials product line.

The brokerage also highlighted a strong margin expansion outlook, supported by rising localisation, operating leverage, and a higher contribution from high-margin segments such as B2B and after-sales services.

The company’s EBITDA margin is projected to expand by 220 basis points over the forecast period, while pre-tax RoIC is expected to reach 63 per cent by FY29, the highest among peers.

Pre-tax RoIC measures how efficiently a company generates operating profit before taxes from the capital invested in its business.

However, Nuvama flagged certain risks, including an unfavourable summer season and potential changes in export strategy. Despite this, it remains constructive on the stock, valuing it at 48x FY28E earnings and reiterating a strong long-term growth trajectory for the consumer electronics major.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)