India is emerging as one of the strongest growth engines for LG Electronics, and Jefferies believes the momentum is only getting stronger. In a new initiation report, the brokerage placed a Buy rating on LG Electronics with an upper target price of Rs 2,200 per share, implying nearly 36% upside from the latest close. Jefferies said India is steadily becoming a profit-rich geography for the Korean appliance maker, supported by a sharp rise in premiumisation, stronger brand pull, and a shift in consumer preference toward high-value products.
The brokerage added that LG’s position has strengthened across air-conditioners, refrigerators, washing machines, and televisions, with India now contributing almost one-fifth of the company’s consolidated operating profit. That share, it said, is set to grow meaningfully over the next three years.
Jefferies on LG Electronics India: Premium shift boosts earnings profile
Jefferies said India’s contribution to LG’s global revenue has climbed rapidly over the past few years, driven mainly by the premiumisation wave. High-end appliances, especially multi-inverter air-conditioners, frost-free refrigerators, top-tier washing machines, and OLED TV models, have seen faster adoption as urban incomes rise and replacement cycles shorten.
This shift, Jefferies noted, is allowing LG to command better margins than peers in several categories. The report pointed out that Indian consumers are increasingly opting for higher-ticket products, and LG has positioned itself well in these premium lanes with brand strength, distribution reach, and product quality all working together.
“India is no longer a volume-only market for LG. It is becoming a margin contributor,” Jefferies said.
Jefferies on LG Electronics India: Revenue base expanding across categories
The brokerage said LG’s India sales mix has diversified considerably. Air-conditioners, which used to be a seasonal category, are seeing deeper penetration in Tier-II and Tier-III cities. Refrigerators continue to be a steady growth pillar, and washing machines have seen rising demand for higher-capacity and fully-automatic variants.
Jefferies added that LG’s television business in India is benefitting from a clear uptrend toward larger screen purchases. OLED as a category is expanding faster than the industry average, and LG continues to lead in this segment with a strong product pipeline.
The report said these category-wise gains are helping LG build a steady revenue runway that can hold even through muted demand seasons.
Jefferies on LG Electronics India: Operational scale drives cost advantage
One of the central themes in Jefferies’ initiation report is LG’s manufacturing scale in India. The brokerage noted that LG’s large domestic production base gives it a structural advantage in cost management, pricing flexibility and product availability.
Local manufacturing has helped LG absorb input fluctuations better than peers, the report said, and allowed the company to respond faster to shifts in demand. Jefferies also highlighted that LG has been expanding local value addition in key products, which should aid margin consistency in the coming years.
“Scale, localisation and category depth together give LG a strong operational buffer,” the brokerage wrote.
Jefferies on LG Electronics India: Investments in R&D and brand strength
Jefferies said LG’s long-term brand equity in India remains robust because of continuous investments in innovation and category-specific R&D. The company has been widening its smart-appliance range and introducing higher-efficiency models in air-conditioning and refrigeration.
The brokerage pointed out that LG’s brand recall in India is among the highest across consumer-durable categories, and its distribution network is one of the deepest in the country. That combination, Jefferies believes, will support both market share gains and long-term pricing power.
The report added that LG’s customer-service network remains a differentiator, particularly in categories where after-sales reliability influences repeat purchases.
Jefferies on LG Electronics India: Financial performance and projections
Jefferies expects India’s earnings contribution to LG Electronics to rise consistently over the next three years. The brokerage projects steady revenue growth supported by premiumisation, deeper distribution and category expansion.
The report said margins should improve gradually as the share of high-value appliances increases. Jefferies expects operating profit from the Indian business to compound at a healthy pace, helping the company lift its consolidated return profile.
The brokerage’s base-case scenario assumes continued double-digit revenue growth from the Indian market and operating leverage as volumes scale up. Its target price of Rs 2,200 per share implies a meaningful re-rating potential from current levels.
Jefferies on LG Electronics India: Key risks to watch out for
Jefferies noted a few factors that investors should keep track of. A sharp rise in competitive intensity, especially in air-conditioners and entry-level refrigerators, could put pressure on margins. Any volatility in panel prices may affect the television segment’s profitability. The brokerage also flagged macro-sensitive demand in discretionary categories as a risk if consumer sentiment softens.
Policy-linked fluctuations in import duties or localisation rules could influence cost structures, Jefferies added.
Even so, the brokerage said LG’s brand strength, distribution scale and category leadership place it in a favourable position to manage these risks.