The LG Electronics India share price is still trading below its listing price but the stock has delivered nearly 15% return in the last 1 month. The stock is also increasingly seeing coverage by key brokerage houses. After Goldman Sachs, Axis Securities has also initiated coverage on LG Electronics India with a ‘Buy’ recommendation and a target price of Rs 1,815/share, which implies an upside of 16% from the current level.
Axis Securities believes the company is well-positioned for sustained profitability and growth supported by its leading market share, brand equity and deep distribution network.
LG Electronics’ strong distribution capabilities to help
LG Electronics India has typically enjoyed a significant market share across the home appliance categories. The increasing share in premium segments and leadership in Side-by-Side refrigerators is additionally supporting the Buy call by Axis Securities.
The domestic brokerage house pointed out that “the company is expected to maintain its consolidation in premium ranges as well as entry-level brands. It also has further scope to improve market share through entry into LG Essentials (an entry-level brand), capacity enhancements, and a robust supply chain.”
They believe that these measures are likely to “support improvement in the company’s overall profitability. ” The consumer durables sector is expected to see deeper penetration in tier 2 and 3 cities, and Axis Securities believes that LG Electronics India’s “strong distribution capabilities are likely to further strengthen its overall market position.”
The power of ‘local’ focus
LG Electronics has leveraged its global technology leadership to deliver consumer-centric innovations tailored to local requirements, and this has given the company a “strong competitive edge.”
These innovations extend across categories through energy-efficient inverter air conditioners, customised washer–dryer solutions suited to Indian climatic conditions, and microwave ovens adapted to Indian cooking habits.
According to Axis Securities, “localised design features, supported by a nationwide after-sales service network, further strengthen brand loyalty, reinforcing the company’s position as a preferred household electronics brand in India.”
Betting on localised supply chain
The other big advantage, as per Axis Securies, is LG’s “operational efficiency is supported by a deeply localised and well-integrated supply chain.” It works with 287 long-standing suppliers, with an increasing share of components sourced domestically. The brokerage house highlighted that “local procurement has risen to 54% in FY25, lowering costs, mitigating currency risk, and reducing lead times.”
According to them, large in-house manufacturing capacity, component-level backward integration, and improving utilisation levels support tighter cost control and consistent product quality.
Additionally, “the company’s Rs 705 crore incentive in the government’s manufacturing scheme shows the company’s participation in the mega-expansion scheme,” Axis Securities added.
Conclusion
Broadly speaking, Axis Securities pointed out that drivers like expansion into B2B segments, doubling exports by FY27, entry into new product categories, and rising localisation under the ‘Make in India’ initiative strengthen the operating model for LG Electronics India. The strong brand and presence across both value and premium segments supports the Buy rating by Axis Securities.