Goldman Sachs has initiated coverage on LG Electronics India with a ‘Buy’ rating and set a 12-month target price of Rs 1,750. Based on the current levels, this implies an upside of nearly 15%. In its 17 February 2026 note, Goldman Sachs said the company is “a market leader in terms of revenue and market share across multiple product categories with a 28-year presence in India” and believes it is “well-placed to grow faster than the industry in the near to medium term.”
The brokerage has valued the company at a 44x P/E multiple on FY28 EPS estimates to arrive at its target price.
Goldman Sachs on LG Electronics: Big growth drivers
Here is a detailed look at why Goldman Sachs has taken a positive view on LG Electronics.
#1 Faster growth than the industry
Goldman Sachs expects LG Electronics India to outpace the broader consumer durables industry in the coming years. The brokerage said growth will be supported by “shifting income cohort mix and rising penetration leading to faster industry growth in mid and premium products.”
The firm conducted “a bottom-up industry analysis (across four consumer durable categories)” by dividing India’s income-earning population into four cohorts and comparing consumption and penetration trends with countries of similar GDP per capita.
Based on this framework, Goldman Sachs forecasts that “the Indian consumer durables category is poised to grow at a revenue CAGR of 10.2% over the next five years versus 8.9% growth in the previous five years.”
Against this backdrop, it believes LG Electronics India is positioned to grow faster than the industry average in the near to medium term.
#2 Higher premium mix and GST benefit
A key part of the brokerage’s thesis is the company’s product mix. Goldman Sachs said the company has “a higher mix of premium products (relative to the industry).”
It also described the company as “the highest beneficiary of GST cuts in our coverage,” which it believes supports growth visibility.
Due to these factors, Goldman Sachs expects the company to grow at a CAGR of 15% between FY26–FY28.
The brokerage’s estimates show revenue at Rs 24,366.64 crore in FY25, Rs 24,816.30 crore in FY26E, Rs 29,288.80 crore in FY27E and Rs 33,083.92 crore in FY28E. EPS is projected at Rs 32.46 in FY25, Rs 26.67 in FY26E, Rs 30.92 in FY27E and Rs 39.74 in FY28E.
#3 Innovation track record and parent backing
Goldman Sachs said LG Electronics India’s “consistent track record of innovation” should allow it to sustain premiumisation trends.
The brokerage also cited “strong R&D backing by its parent to sustain staying ahead of the innovation curve.” It believes this support is important in categories where technology and product features drive consumer upgrades.
In addition, Goldman Sachs referred to LG Electronics Inc’s “Global South” strategy. According to the report, this strategy “should enable it to improve exports while expanding its manufacturing in India.”
The brokerage sees this as a structural support for long-term growth.
#4 Market leadership, B2B optionality and premium valuation
Goldman Sachs believes the company’s position across categories justifies a premium multiple within its consumer durables coverage.
It said the company’s “market leadership in under-penetrated categories” strengthens its growth outlook.
The brokerage also cited “brand strength and higher growth optionality from its B2B business” as additional positives.
At the same time, Goldman Sachs cautioned that “rising competitive intensity in an increasing commodity price environment should keep margin expansion potential limited.” Even so, it values the company at a 44X P/E multiple on FY28E EPS and has set a 12-month target price of Rs 1,750.
Conclusion
Goldman Sachs believes LG Electronics India can grow faster than the industry on the back of premium products, innovation strength and category leadership. Despite margin pressures, the brokerage has started coverage with a ‘Buy’ rating.