Shares of LG Electronics India Ltd. will be in focus on Wednesday, December 10, after brokerage firm Kotak Institutional Equities initiated coverage on the stock.

Kotak has begun coverage with a 'Reduce' rating and a fair value of ₹1,600, implying a marginal downside from Tuesday's closing price. The brokerage said the stock looks fairly valued at current levels.

According to Kotak, LG's leadership in India's sharply competitive appliances and electronics market is anchored in its strong brand equity, deep distribution network, category-first product innovations and backward integration.

The brokerage believes the launch of affordable appliances, expansion into new categories and a pickup in exports and B2B could aid growth.

Kotak cited that LG Electronics commands over 25% share in WM

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