Summer is beginning to tighten its grip across India, and with rising temperatures, the focus on cooling appliances is heating up on Dalal Street. Moreover, with rising temperature, demand for air conditioners, refrigerators, and other consumer durables also surges and this year seems no different.

Following this seasonal shift, one recently listed company has caught the attention of global brokerage firm Jefferies. The stock in focus here is LG Electronics India. The international brokerage house Jefferies has initiated a positive view on the stock. It has given a ‘Buy’ rating to this stock and sett a target price of Rs 1,910. This implies a potential upside of around 29% from current levels.

But what is driving this optimism, and can the summer demand story sustain? Let’s take a look –

Early summer trends and pricing power in focus

Jefferies in its report notes that the initial signs from the ongoing summer season are encouraging. Demand for cooling products is picking up as temperatures rise across several parts of the country.

One of the key factors supporting growth is the company’s ability to pass on rising costs. According to the brokerage report, LG Electronics has already increased prices of its 3-star and 5-star air conditioners by 7-9% in the March quarter of FY26.

“Further hikes of +5-10% likely in April 2026 due to weak rupee, higher raw materials,” the report added.

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New launches and market share gains

Another reason behind the positive outlook is the company’s strong product pipeline. As per Jefferies report, LG Electronics has been actively launching new products across categories to maintain its market position.

Recent launches include a premium 2-ton 5-star air conditioner, French-door refrigerators, and artificial intelligence-powered washing machines. The company is also expanding into new categories such as chest freezers and introducing products targeted at smaller cities.

The report added, LG Electronics has gained share across multiple categories, including refrigerators, room air conditioners, televisions, and washing machines. .

“Recent launches to help sustain high market shares,” the report highlighted.

AI push, exports and future growth drivers

The brokerage sees multiple growth levers that could support the company over the medium term. One of these is the increasing role of exports. Currently, exports contribute around 6-7% of total sales, with limited exposure to the Middle East.

“Exports at 6% of sales, of which ME is a smaller part,” the report stated, suggesting that geopolitical risks may have a limited direct impact. At the same time, opportunities from trade agreements and tariff reductions could support export growth in the future.

The company is also investing in expanding its manufacturing capacity, particularly for export-focused products. In addition, it is exploring new business segments such as business to business services and annual maintenance contracts.

Another important trend is localisation. According to the brokerage report, LG Electronics is increasing local sourcing in its television business.

Key risks to watch and other details

The brokerage has flagged certain risks that investors need to watch. Geopolitical tension, particularly in the Middle East, could impact supply chains and fuel availability.

“While LPG shortage (ME conflict) is key industry risk, players are evaluating other fuel sources,” the report noted.

There are also concerns around raw material volatility, weather conditions, and execution of new capacity expansion plans.

Conclusion

According to the brokerage report, the overall outlook remains steady. “We estimate revival in FY27e led by normal summer on a weak base of LY,” it said, adding that earnings per share growth is expected to remain strong over the next few years.

Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor.