A leader across the living room and the kitchen

Ventura's starting point is dominance. LG holds commanding positions across every core appliance category, and the breadth of that leadership — rather than any single hero product — is what the brokerage believes insulates earnings and funds the next leg of growth. Its estimated category shares tell the story.

The company closed FY26 with revenue of Rs 24,605 crore and net profit of Rs 1,685 crore, capping the year with its highest-ever quarterly revenue — Rs 8,054 crore in the March quarter, up 8 percent year on year. A two-track strategy spanning premium and mass-premium price points is gaining traction in large-panel televisions, French-door refrigerators and the LG Essentials range.

Where the growth comes from

Room air-conditioners lead the charge, but the growth is broad-based across the portfolio. The grid below maps Ventura's projected revenue growth by segment; deeper shading marks faster expansion.

Room air-conditioners are seen accelerating from 14 percent growth in FY27E to 18 percent by FY29E — the sharpest trajectory in the portfolio.

The levers behind the margin story

Ventura's more striking call is on profitability. It expects EBITDA margins to widen by 268 basis points, from 9.8 percent in FY26 to 12.5 percent by FY29E, with net margins improving from 6.8 percent to 8.4 percent. The gauge below plots that journey.

Several levers do the work. Localisation is set to climb from 55 percent toward 65 percent, cushioning margins against currency swings; exports, currently around 6 percent of revenue, are targeted at 9 to 10 percent; and the business-to-business channel could scale from roughly 4 percent to 7 to 8 percent over the medium term. Recurring revenue from annual maintenance contracts and the higher-margin LG Essentials range add further ballast.

Capacity is the enabler. A planned Rs 5,000 crore plant at Sri City in Andhra Pradesh — LG's third factory in the country — will lift compressor capacity from 10 lakh to 30 lakh units and nearly double room air-conditioner output, while strengthening the export base. Ventura also flags data-centre cooling, where LG has established hyperscaler relationships, as a promising future B2B lever.

The numbers behind the call

Over FY26-FY29E the model shows revenue compounding in the low teens while operating profit and earnings grow more than half again as fast, a function of the margin expansion above.

On these estimates, earnings per share climb from about Rs 24.8 in FY26 to Rs 44.4 by FY29E. The Rs 2,141 target values the stock at 48.2 times FY29 earnings — punchy in isolation, but Ventura argues LG screens cheaper than its listed peers while delivering superior returns on capital, leaving room for a re-rating.

Where LG sits among its peers

Ventura ranks LG at the head of its consumer-durables pecking order, citing category leadership, a diversified revenue base and a valuation it considers undemanding relative to the group.

The macro backdrop is supportive. Private final consumption accounted for about 61 percent of India's GDP in 2024 — below consumption-heavy economies — while per-capita income is projected to rise from roughly Rs 2.56 lakh in 2025 toward Rs 3.98 lakh by 2030, widening the addressable base for both essential and discretionary appliances.

Key risks