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ICICI Securities Report
LG Electronics India Ltd.'s Q3 FY26 print was weaker-than-expected as its performance was marred by post-festive seasonality and weaker trade/ consumer offtake. LG consciously avoided price discounting to protect brand positioning, which impacted margins, in the brokerage's view.
A further blow to margins came from higher commodity inflation and currency depreciation. However, ICICI Securities remain positive on the company, given
The company continues to maintain its market leadership in key categories – supported by its brand strength, premium positioning and extensive distribution network.
LG has gained offline TV market share and bolstered its leadership position.
Sri City plant is on track and is slated to be operational by Q3 FY27. The brokerage believe, this should enhance LG's supply chain efficiency by enabling faster market access and improving product availability.
The company continues to focus on scaling its AMC business and strengthening its B2B business.
Its dual strategy of supporting margins through premiumisation while driving volumes via its Essential series supports growth visibility.
With US tariff easing out, the brokerage believe margins in information display will likely improve in the medium term.
The brokerage believes, weak Q3 FY26 was transitory impact rather than structural. With strong brand equity, sustained leadership, distribution strength and backward integration, LG is well-positioned to deliver consistent growth and margin resilience over the medium term.
The brokerage retain Buy with a DCF-based revised target price of Rs 1,746 (earlier Rs 1,875; implied target P/E at 46x FY28E EPS).
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Icici Securities Lg Q3fy26 Results Review.pdf
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