2 days ago
LG Electronics Shares Hit Record High on Growth Outlook
LG Electronics shares climbed to a record high.
Analysts expect the company to sell more products and earn better margins.
They point to premium products and a wider mix of items as possible reasons.
LG said air-conditioner prices would rise by 5–6% from October 1.
It had not announced price increases for its other product groups.
Analysts also see new factories, exports and business sales as ways to grow.
MOFSL kept its Buy rating and set a target price of Rs 2,080.
Other brokerages also expect a strong quarter, though their estimates and target prices differ.
LG Electronics shares rose 6% to a record high, according to the article.
MOFSL expects margins to improve on premium products, richer product mix and increased localisation.
LG announced a 5–6% air-conditioner price increase from October 1; other product prices were expected to remain largely stable.
MOFSL sees Sri City capacity, exports and business-to-business expansion as medium-term growth drivers.
Nuvama and JM Financial also forecast growth, with JM estimating Q2 FY27 revenue of Rs 7,100 crore.
- Who
- LG Electronics and brokerages including MOFSL, Nuvama Institutional Equities and JM Financial.
- What
- LG Electronics shares rose 6% to a record high as brokerages cited growth and margin prospects.
- Where
- The article discusses LG Electronics shares and its planned production capacity at Sri City.
- When
- The article does not specify the date of the share-price rise; LG's air-conditioner price increase is effective October 1.
- Why
- Brokerages pointed to premiumisation, product expansion, price actions, localisation and expected growth in appliances and other products.
Key facts
- Share move
- Shares rose 6% to a record high.
- Air-conditioner price increase
- 5–6%, effective October 1.
- MOFSL target price
- Rs 2,080; rating reiterated as Buy.
- Nuvama target price
- Rs 1,990.
- JM Financial Q2 FY27 revenue estimate
- Rs 7,100 crore, up 15% year-on-year.
- JM Financial EBITDA margin estimate
- 9.5%, compared with 8.9% a year earlier.
- Sri City production schedule
- Compressor production is expected to start in Q3 FY27, AC manufacturing in Q4 FY27, followed by washing-machine and refrigerator production over the subsequent 18 months.
- MOFSL FY26–29 CAGR estimates
- Revenue around 14%, EBITDA around 24% and PAT around 25%.
Quotes
MOFSL
Brokerage whose outlook and estimates for LG Electronics are reported in the article.
“New product launches and increasing SKUs in the value-driven essential series should support portfolio expansion and market penetration.”
businesstoday.in
Sources
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