Buy

Per media articles (refer to link) , the Union Cabinet has approved changes to the Press Note 3 framework for FDI (we await official confirmation by the GoI).

We recommend a BUY rating on the stock with a TP of Rs 1,628/share, implying an upside of 10% from the CMP.

Our recent interaction with LG Electronics India (LGEIL) management suggests that LGEIL continues to gain market share across key categories despite mixed industry trends, with refrigerators growing marginally against a 1.5-2.0% industry decline and TVs delivering 6.4% growth vs. 3.8% growth for the industry.

The Indian Room Air Conditioner (RAC) market is expected to grow at a strong 19% CAGR over FY26E28E, driven by rising consumption and low penetration of just 8%, which offers significant headroom compared to...

We are initiating coverage on LG Electronics India Ltd (LGEIL) with a BUY recommendation and a target price of Rs 1,815/share, which implies an upside of 16% from the CMP.

Q3FY26 performance: LG Electronics reported weak Q3 amid softer post-festive demand and weak traction in compressor-led categories. Revenues were down by 6.4% YoY, 33.4% QoQ. Segmentally, Home Appliance & Air Solutions segment reported de-growth of 9.8% YoY, while Home Entertainment posted flattish revenue growth of 1.7% YoY. EBITDA margin contracted sharply by 290 bps YoY, 410 bps...

LG Electronics India (LGEIL)’s 3Q revenue declined ~6% YoY to INR41.1b (in line), while EBITDA declined ~39% YoY to INR2.1b (~23% miss, due to weak performance in the home appliance segment). OPM contracted 2.7pp YoY to 5.1% (est. 6.5%).

About the stock: Amber Enterprises India (Amber) is a leading manufacturer and solution provider for room air-conditioner (RAC) industry, commanding leadership with market share of 26-27%. It has capabilities to manufacture ~70% BoM for RACs. Its electronics division (PCBA, Bare PCB and Box-build) serves customers...

Q3 Revenue/ EBITDA were 22%/ 42% ahead of estimates, driven by strong growth in Electronics (+79% YoY) and CD (+30% YoY)

Amber Enterprises (AMBER)’s 3Q result was ahead of our estimates, driven by a betterthan-expected performance in consumer durable and electronics segments. The RAC industry is witnessing demand revival sequentially, and the company is also expecting growth in the non-RAC segment.

Metering & systems segment contributed ~56% to total revenues as of 9MFY26, while balance ~44% by consumer & industrials. Company has 7 manufacturing facilities (5 in Haryana & 2 in Himachal) and 2 R&D centres. In meters segment,...

Resetting expectations: Vivo, PLI tick marks to be key manufacturing services (EMS) company of India offering comprehensive EMS solutions with specialized focus across product verticals including mobile, television, washing machine, refrigerators, laptop, lighting, telecom, wearables and hearables, AC printed circuit boards (PCBs), etc. Q3FY26 performance: Dixon reported weak set of results as smartphone volumes came at mere ~0.7 cr units vs expectations of ~1 crore units. Management attributed this to weak industry demand esp. in low to mid-budget phones, post...

Revenue grew 2% YoY (-28% QoQ). Mobile division revenue grew 5% YoY (-27% QoQ)

Dixon’s 3QFY26 revenue/EBITDA came in line with our estimates, though the quarter’s performance was impacted by weak demand in the smartphone industry due to challenges related to higher memory prices and channel inventory.

Revenue grew 11% YoY, supported by festive demand and seasonal recovery in ECD and steady contribution from Lighting & Switchgear

Orient Electric (Orient) delivered a resilient performance in Q3FY26 despite macro headwinds. Growth was driven by favourable product mix, cost discipline and portfolio diversification.

A 12% EBITDA beat was driven by stronger-than-expected ECD growth, led by double-digit growth in heating products and single-digit fan growth.

Topline miss was offset by stronger margins, resulting in EBITDA and PAT

Engineering Growth with Excellence

Strong leadership hold across categories: LGEDIA is the market leader across multiple product categories - The company commands strong offline market shares, including ~29.9% in refrigerators, 33.5% in washing machines, 27.5% in panel TVs, 20.6% in inverter ACs, 51.4% in convection microwaves and 40.5% in water purifiers. In premium segments, LGEDIA enjoys a dominant position with ~43.2% share in side-by-side refrigerators, 36.9% in front-load washing machines, 27.2% in 5-star ACs and 62.9% in OLED TVs. Similarly, the company has strong presence in mass market i.e....