Nomura initiates coverage on LG Electronics India stock with Buy rating

Published 14/10/2025, 06:50
Nomura initiates coverage on LG Electronics India stock with Buy rating

Investing.com - Nomura/Instinet initiated coverage on LG Electronics India (LGEL:IN) stock with a Buy rating and set a price target of INR1,800.00.

The research firm projects LG Electronics India will achieve a 10% revenue compound annual growth rate (CAGR) from fiscal year 2025 through 2028, driven by multiple products, exports, and service initiatives.

Nomura estimates EBITDA margins will improve from 12.8% in FY25 to approximately 14.1% in FY28, led by better product mix, operating leverage, and localization efforts, resulting in a 14% earnings per share CAGR over the period.

The firm expects LG Electronics India to trade at the mid-point of its historical trading band of 30-45x earnings, attributing a 40x target price-to-earnings ratio on average FY27-28F EPS to reach its INR1,800 price target.

The target price represents a 58% upside potential from the IPO price of INR1,140, though Nomura identified potential downside risks including slower industry growth, market share loss due to competition, adverse currency movements, and limited success in export markets.

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