Near-term margin compression is expected to ease as raw material costs stabilise
Outlook & Valuation: Looking ahead, LGEIL is well-positioned for structural growth and margin recovery, supported by its “Make-in-India, Make-for-India, and Make-India-Global” strategic roadmap. Near-term margin compression is expected to ease as raw material costs stabilise, promotional spend rationalises, and component localisation increases from 55.2% toward 70% over the next 3–4 years. Accordingly, we maintain BUY on LG Electronics, valuing the stock at 47x FY28E EPS, with an unchanged target price of Rs 1,965/share, implying an upside of 19% from the CMP.
LG Electronics India Ltd – FY26 Annual Report Analysis – 10092026 (2)_10-09-2026_13
