ICICI Direct Recommends 'Buy' LG Electronics India, Sets Target at Rs 1875

• ICICI Direct maintains a 'Buy' rating on LG Electronics India with a target price of Rs 1875, citing market leadership and backward integration.
• Near-term outlook is soft due to weak primary and secondary sales, despite initial volume boost from GST cuts.
• LG gained market share in 5-star RACs and refrigerators amidst a weak demand environment.
• Potential 8-10% price hike for 5-star ACs could occur due to new BEE norms.
• Rationalized promotional schemes and traction from the Essential series support margins and revenue visibility.

Why It Matters: ICICI Direct recommends 'Buy' LG Electronics India, projecting Rs 1875 target despite near-term softness.