LG Electronics India Shares: 80% Upside Post-Debut

LG Electronics India Shares Debut with 50% Surge: Brokerages Eye Up to 80% Upside

LG Electronics India shares made a blockbuster entry on October 14, 2025, listing at a robust 50% premium over the issue price of ₹1,140, opening at ₹1,715 on BSE and ₹1,710 on NSE. This lg electronics india share price rally underscores investor enthusiasm for the consumer durables giant's market dominance in appliances like refrigerators, washing machines, and ACs. As the largest IPO by a foreign firm in India since 2008, raising ₹11,607 crore via offer for sale, the debut values the company at over $13 billion. Brokerages remain bullish, forecasting lg electronics india ipo upside of up to 80%, driven by premium positioning, localization, and B2B expansion.

The listing premium reflects strong subscription-54 times oversubscribed-fueled by LG's 30-year legacy in India, commanding 30%+ shares in key categories. With global R&D backing and a net cash position of ₹37 billion in FY25, the firm eyes 13% revenue CAGR through FY28. Analysts highlight robust RoE of 32% and dividend payouts averaging 65%, positioning it as a top pick in the sector amid demand revival.

Post-debut, shares traded around ₹1,700, with volumes exceeding 9 lakh, signaling sustained interest. This momentum aligns with India's consumer electronics boom, projected at 12% annual growth, where LG's premium focus and export ambitions from a third plant in FY27 could amplify earnings.

Market Leadership and Strategic Edge Fueling Brokerage Optimism

LG Electronics India's stronghold in premium segments-33.5% in washing machines, 29.9% in refrigerators, and 51.4% in microwaves as of June 2025-forms the bedrock of brokerage confidence. The company's deliberate exit from mass markets has fortified its brand loyalty, enabling higher margins through innovation-led launches like AI-enabled appliances. With India as the parent's largest market outside the US and Korea, it targets one-third of global growth over five years via mass-premium expansion and B2B ventures in HVAC and displays.

Localization efforts, including 90%+ domestic sourcing, are set to widen gross margins to 28% by FY28, per estimates. Coupled with a third manufacturing plant, this positions LG as an export hub, tapping ASEAN demand. Brokerages like Emkay emphasize the firm's net cash buffer of ₹50 billion by FY28, supporting FCFE yields of 7.6% and RoCE of 44%, making it resilient amid economic cycles.

In a sector where peers like Voltas and Blue Star grapple with competition, LG's global R&D-over 50 innovation centers-drives product superiority, from inverter tech to smart connectivity. This edge, amid India's urban consumption surge, underpins projections of 14% EPS CAGR through FY28.

Emkay Global: Buy Call with 80% Upside to ₹2,050

Emkay Global Financial Services leads the pack with a 'buy' recommendation, targeting ₹2,050- an 80% lg electronics india brokerage target from debut levels. Highlighting LG's three-decade franchise in large appliances, Emkay notes premium positioning via brand power and execution excellence. The report forecasts 13% revenue growth over FY26-28, translating to 14% EPS expansion, bolstered by demand revival and B2B focus.

Key catalysts include the third plant's FY27 launch, enhancing exports and localized innovations. With average RoE/RoCE at 32%/44% and a 65% dividend payout, Emkay sees FCFE yield hitting 7.6% by FY28, underscoring undervaluation at current multiples.

• Revenue CAGR: 13% (FY26-28E)
• EPS CAGR: 14%
• Net Cash: ₹37B (FY25) to ₹50B (FY28E)
• Dividend Payout: 65% average

Emkay's thesis aligns with India's appliance market doubling to $20 billion by 2030, where LG's 20%+ share cements its moat.

Motilal Oswal: 58% Upside to ₹1,800 on Margin Expansion

Motilal Oswal Financial Services echoes the positivity with a 'buy' at ₹1,800, implying 58% lg electronics india motilal oswal target. The firm anticipates higher multiples from 30% RoE and 66% RoIC in FY28, plus 74% OCF conversion over FY26-28. Localization and B2B/AMC growth are margin drivers, pushing EBITDA to 13.1% by FY28 from 12.8% in FY25.

Projections include 10% EBITDA CAGR and 12% PAT over FY25-28, accelerating to 15%/17% from FY26. Leadership in categories like panel TVs (27.5% share) supports this, amid premiumization trends.

Motilal views the debut premium as a launchpad, with strategic sourcing curbing input costs and exports adding 5% to revenues by FY28.

PL Capital: 56% Potential to ₹1,780 on Distribution Strength

PL Capital initiates 'buy' at ₹1,780, a 56% lg electronics india pl capital target, citing extensive networks and premium branding for category leadership. The brokerage estimates 9.9% revenue, 10.9% EBITDA, and 9.3% PAT CAGRs over FY25-28, driven by expansions in AMC, B2B, and local sourcing.

Manufacturing prowess and diverse portfolios position LG to capture appliance growth, with brand loyalty ensuring sticky revenues. PL Capital forecasts OPM stability at 12.5%, supported by capacity ramps.

Antique Stock Broking: 51% Upside to ₹1,725 on Financial Solidity

Antique Stock Broking recommends 'buy' at ₹1,725, offering 51% lg electronics india antique target, lauding strong financials and return ratios. It projects 11% revenue, 12% EBITDA, and 12% PAT CAGRs over FY25-28, with OPM rising to 12.9% in FY28 from 12.3% in FY26.

The firm's net cash and innovation pipeline make it a compelling hold, especially with exports and B2B scaling to 15% of mix by FY28.

Equirus Securities: Long Call at ₹1,705 on Premium Leadership

Equirus Securities opts for 'long' at ₹1,705 (40x FY26 EPS of ₹43), implying 45% upside. As India's top durables player, LG's value shares-20.6% in inverter ACs-stem from strategic premium focus, offsetting mass share erosion.

Modeling 11% revenue, 13% EBITDA, and 9% PAT CAGRs over FY25-28, Equirus sees 35x FY25 multiples as an entry bargain, with B2B and exports catalyzing growth.

Broader Outlook: Why LG Electronics India Stands Out in Durables

Consensus across brokerages points to 12% sector CAGR, but LG's 13-15% outpaces via premiumization and digital integration. With 5,000+ touchpoints and e-commerce at 20% sales, distribution evolves to omnichannel. Sustainability-energy-efficient lines-aligns with green mandates, potentially adding 2-3% margins.

Risks like raw material volatility are mitigated by hedging, while competition from Samsung/Whirlpool is countered by R&D spends at 2% of revenues. Post-IPO, fresh capital bolsters capex to ₹2,000 crore annually, targeting 25% B2B by FY30.

For investors, the debut validates hype; average targets suggest 60%+ returns by FY28. In a portfolio, LG diversifies auto-heavy holdings, blending stability with growth. As India urbanizes, LG's appliance ecosystem-from smart homes to exports-promises enduring value.