LG Electronics India shares took a hit on Thursday, settling nearly 2 percent lower due to a weak demand outlook for the December quarter. But does this short-term slump spell doom for investors, or is it just a minor blip on the radar?
The stock settled at Rs 1,521.50 on the NSE, down 1.89 percent, after touching a fresh low of Rs 1,515.50 during the session. This decline marks the third consecutive session of losses, with the shares down 3.14 percent over the past three days.
A weak demand outlook for the December quarter is being cited as the primary reason for the decline. ICICI Securities notes that the third quarter is expected to be weak due to subdued primary and secondary sales across air conditioners, televisions, and appliances. The demand has slowed down after the festive season, and the near-term outlook remains soft.
Despite the short-term slump, LG Electronics India continues to gain market share in the room air conditioner segment. The company's channel inventory position is also better than its peers, which is a positive sign for investors. ICICI Securities has maintained a 'buy' rating on the stock, with a target price of Rs 1,875, citing confidence in the company's medium-term prospects.
Remember, this is just a perspective, not a prediction. It's essential to do your own research and consider your investment goals before making any decisions. The Indian stock market can be volatile, and it's crucial to stay informed and adapt to changing market trends.
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