Jefferies raises LG Electronics India target to Rs 1,895, citing 21% EPS growth
Analysts see significant upside potential for the Indian electronics firm driven by premiumization and capacity expansion plans.
Jefferies analysts assigned a 'Buy' rating to LG Electronics India with a new target price of Rs 1,895. The brokerage views the stock as positioned for up to 21% gains in its bull-case scenario, which projects the share reaching Rs 2,000. In contrast, the firm's base case estimates a compound annual growth rate of 21% for earnings per share over the next three years, ranging from fiscal year 26 through 29. Current trading activity showed shares closing at Rs 1,636.80 after dipping slightly during the session. The research team highlights planned capital expenditures between Rs 12 billion and Rs 15 billion, primarily focused on the Sri City facility. Despite these heavy investments, analysts predict return on capital employed will stay between 30% and 33%, while return on equity is expected to sit at 24% to 25%. The report also notes the company has achieved a 25% rise from April lows, trading at approximately 45 times forward earnings. Target price-to-earnings multiples stand at 46 times.
