LG Electronics Shares Slip 3% After Hitting 52-Week High As Investors Book Profits

LG Electronics India shares saw profit booking after touching a fresh 52-week high, driven by a strong operating performance in the June quarter.

Shares of LG Electronics India Limited fell nearly 3% during Monday trading as the household appliances stock experienced profit booking after hitting a fresh 52-week high. The company reported a better-than-expected operating performance for the June quarter of FY27, bolstered by solid revenue growth and strong operational execution.

Trading Session Movements
At 1:25 pm on Monday, August 17, the LG Electronics India share price was trading 3.17% lower at Rs 1,676.95 per share on BSE, carrying a market capitalization of Rs 1,13,694.38 crore. Earlier in the session, the stock touched a fresh 52-week high of Rs 1,755.55 per share on BSE, while its intraday low touched Rs 1,670.15 per share.

Breakdown of Financial Results
The company delivered a stronger-than-estimated operating performance, powered by higher-than-expected revenue and margins in its HE segment. Its well-diversified product portfolio across multiple categories has successfully driven growth across various demand cycles. Consolidated net profit for Q1FY27 jumped 27.2% year-on-year to Rs 652.8 crore, compared to Rs 513.2 crore in the corresponding period of the previous year.

Meanwhile, the company's revenue expanded by 15.5% to reach Rs 7,233.3 crore, up from Rs 6,262.9 crore a year ago. Operating profitability also saw a significant boost, with EBITDA surging 26.2% to Rs 904.2 crore against Rs 716.2 crore previously. Consequently, the EBITDA margin expanded to 12.5%, improving from 11.4% in the year-ago quarter.

Brokerage Outlook and Long-Term Projections
Motilal Oswal, in its report released on Monday, August 17, stated that they remain positive on the long-term growth prospects of LG. This optimism is underpinned by broad-based category growth, premiumization, rising localization, strong brand positioning, and an increasing contribution coming from exports and B2B businesses.

The brokerage maintained a 'Buy' recommendation with a long-term target price of Rs 2,000 per share. Motilal Oswal noted that they increased their EPS estimates by approximately 7% and 10% for FY27 and FY28 respectively, following upward revisions in revenue and margin projections. The target price is arrived at by valuing LG at 45x FY28E EPS.

Stock Price Trajectory and Historical Context
The consumer electronics maker's stock hit its new 52-week high mark during the session. Looking back, the stock had dipped to a 52-week low of Rs 1,300 per share on January 21, 2026. The share price has rallied roughly 12% so far in 2026, registering gains of 6.7% over two weeks and approximately 6.15% over three months.

What this means for you
Across India: Investors tracking the consumer durables sector should closely monitor valuation shifts and profit-booking trends in major appliance stocks.

Questions & Answers

1. Why did LG Electronics India shares fall recently?
The shares fell nearly 3% due to profit-booking by investors after the stock hit a fresh 52-week high.

2. What was the company's net profit for the June quarter?
The consolidated net profit rose 27.2% year-on-year to Rs 652.8 crore.

3. What is the target price set by Motilal Oswal?
The brokerage maintained a 'Buy' recommendation with a long-term target price of Rs 2,000 per share.

4. When did the stock hit its 52-week low this year?
The stock touched its 52-week low of Rs 1,300 per share on January 21, 2026.

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