Growth across the shop floor

Within the headline numbers, the premiumization thread runs clear. In televisions, the 55-inch-and-above segment is growing about 50 percent year on year while smaller screens stay broadly flat — large panels now account for a disproportionate share of value growth even as unit volumes moderate.

Year-on-year growth by screen size, as indicated by management.

The same dynamic is reshaping refrigeration. LG's new French-door range — priced at Rs 1.2-1.6 lakh — became the segment leader by the end of August, overtaking Haier and Samsung within three to six months of launch, even as the broader refrigerator category grows only in low single digits. The latest 574-to-610-litre line underlines the intent to keep pushing up-market, expanding the addressable premium pool.

New categories, wider net

Portfolio expansion is the other growth plank. LG has entered the chest freezer market — a domestic category worth about Rs 3,000 crore — with a convertible range of six models priced between Rs 28,990 and Rs 62,990, opening a commercial-refrigeration stream across retail, dairy, pharmaceuticals and food service. A new 15-model semi-automatic washing-machine line, built at Greater Noida, targets exports to more than 10 countries in 2027. Underpinning the volume strategy is LG Essential, a value-driven series designed to upgrade the mass market while protecting margin, which the company plans to extend to 22 countries across Asia, the Middle East and Africa by the end of 2026.

Sri City: the localization clock

The clearest medium-term lever is the phased build-out at Sri City, which deepens localization, substitutes imports and adds supply-chain flexibility. Compressor output starts first, with appliance lines following in sequence.

Phase-wise ramp at Sri City. Compressor (3QFY27) and AC (4QFY27) starts are company-guided; later lines follow over the subsequent 18 months, with timing indicative.

The estimates underneath

The target for investors

This is a premium multiple for a premium franchise. At 40 times forward earnings the stock is not cheap, but it is backed by a near-29 percent return on equity, a net-cash balance sheet and an earnings line compounding in the mid-twenties. Margins are set to widen roughly 70 and 40 basis points in FY28 and FY29, back toward 13 percent. Motilal Oswal applies 45 times September-2028 earnings to reach its Rs 2,080 target, about 22 percent above the current price. For investors, the case is a structurally advantaged consumer-durables leader whose localization, premiumization and export levers are only beginning to compound; accumulation on dips suits the premium rating.