LG Electronics India may see market share erosion, Investec warns; Stock in focus

Shares of LG Electronics India, have received their lowest price target on the street on Wednesday, December 24, after being a near "consensus buy" for analysts who tracked the stock so far.

Investec initiated coverage on the stock with a "reduce" rating and a price target of ₹1,536. Investec's target is nearly the same price at which the stock had closed on Tuesday.

The brokerage wrote in its note that despite the lower bargaining power and increasing customer choices due to competition, LG Electronics' reach remains the company's key strength, and moat.

LG Electronics India has robust in-house manufacturing, with a third facility in the pipeline to cater to the South Indian market, exports, lower logistics costs are some additional benefits, Investec's note said.

However, the brokerage has warned that LG Electronics India is likely to face market share erosion, which will impact its topline, along with challenges in its niche premium and super premium categories, due to new entrants in the market.

18 analysts have coverage now on LG Electronics India, of which two have a "sell" rating and the rest have a "buy" recommendation on the stock.

Shares of LG Electronics India ended 0.9% lower on Tuesday at ₹1,546.6. The stock is down 12% from its post-listing high of ₹1,749.