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Post by : Rameen Ariff
LG Electronics India made a strong debut on the stock market on Tuesday, October 14, with shares opening at a premium of up to 50 per cent. Analysts believe the stock still has significant upside potential, with several leading brokerage firms projecting gains of up to 80 per cent.
On the BSE, LG Electronics’ shares were listed at ₹1,715, reflecting a 50.44% premium over the issue price of ₹1,140. On the NSE, the stock debuted at ₹1,710.10, marking a 50% premium. The company is a market leader in home appliances and consumer electronics, with strong positions in refrigerators, washing machines, panel TVs, inverter ACs, and microwave ovens.
Brokerages are optimistic about LG Electronics India’s growth prospects, expecting healthy profit and margin CAGR over the coming years.
Emkay Global Financial Services has a buy recommendation with a target price of ₹2,050, implying an 80% upside potential. Emkay highlighted LG’s strong global R&D, brand power, and premium positioning, noting India as a key market and potential export hub with the third plant starting in FY27. They project 13% revenue CAGR and 14% EPS CAGR, with strong RoE and RoCE of 32% and 44%, respectively.
Motilal Oswal Financial Services gave a buy call with a target of ₹1,800, expecting high return ratios and strong operational cash flow. They highlighted growth in B2B, high-margin businesses, and leadership in core product categories, with projected EBITDA and PAT CAGR of 10-17% over FY25-28.
PL Capital recommends a buy at ₹1,780, citing an extensive distribution network and strong brand loyalty. They forecast revenue, EBITDA, and PAT CAGRs of 9.3-10.9% driven by expansion plans, AMC and B2B growth, and localized sourcing.
Antique Stoke Broking also gave a buy recommendation at ₹1,725, citing strong financials and exceptional return ratios, with revenue, EBITDA, and PAT CAGRs of 11-12% over FY25-28.
Equirus Securities initiated coverage with a long/ buy call at ₹1,705, noting LG Electronics India’s dominance across washing machines (33.5%), refrigerators (29.9%), panel TVs (27.5%), inverter ACs (20.6%), and microwave ovens (51.4%). They highlighted the company’s strategy of focusing on premium segments to maintain leadership.
Overall, the IPO debut demonstrates strong investor confidence in LG Electronics India, and brokerage projections suggest substantial upside potential for investors eyeing the home appliance and consumer electronics market.
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