Kotak Initiates 'Reduce' on LG Electronics India, First Bearish Rating

• LG Electronics India received its first "Reduce" rating from Kotak Institutional Equities, breaking a "consensus buy" from 12 other analysts.
• Kotak initiated coverage with a fair value of ₹1,600, suggesting a marginal downside from the current stock price.
• The brokerage highlighted LG's strong brand equity, deep distribution, product innovation, and significant market share in India's appliances and electronics market.
• Potential growth drivers include affordable appliances, new category expansion, and increased exports and B2B operations.
• Key risks identified by Kotak include potential market share loss, changes in related-party terms, and reduced government grants.

Why It Matters: First 'Reduce' rating for LG Electronics India challenges previous 'Buy' consensus.