LG Electronics shares jump 5% after robust Q1 earnings. What are Jefferies, other brokerages saying?
In the first quarter of FY27, LG Electronics India showcased impressive profit growth alongside significant operational revenue increases from April to June. The surge stemmed from robust demand for premium products across various categories. Analysts remain optimistic, highlighting the company's solid earnings potential and market stance, bolstered by strategic investments focused on enhancing…
On Friday, shares of LG Electronics India surged 5%, reaching Rs 1,654 on the BSE after the company reported a 27% increase in net profit year-on-year for the first quarter of FY27. Revenue from operations grew 15.5% YoY to Rs 7,233 crore, as premium demand drove growth across all categories. EBITDA increased 26% YoY to Rs 904 crore, with EBITDA margin expanding by 106 basis points to 12.5%.
The home entertainment segment led with a 22% revenue rise to Rs 1,657 crore and a 336 basis points EBIT margin. LG Electronics India's Managing Director Hong Ju Jeon attributed the growth to a shift towards premium, technology-led, and energy-efficient products, noting that the company's portfolio is built to support this trend.
Jefferies maintains a Buy rating on LG Electronics India with a target price of Rs 1,810, while Nuvama raised its FY27 EPS estimate by 2% and increased its target price to Rs 1,910.
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