LG Electronics India: LG Electronics’ shares debuted at a strong premium of as much as 50 per cent on Tuesday, October 14, and analysts imagine the inventory should still have vital upside potential. A number of prime brokerage corporations in India are bullish on LG Electronics India, projecting features of as much as 80 per cent.
LG Electronics’ share value received listed at ₹1,715 on the BSE — a premium of ₹575, or 50.44 per cent, over the problem value of ₹1,140. On the NSE, the inventory debuted at ₹1,710.10, representing a 50 per cent premium.
LG Electronics is a market chief throughout key house equipment and client electronics classes, with a powerful presence in fridges, washing machines, panel TVs, inverter air-conditioners, and microwave ovens.
Brokerages are upbeat concerning the firm’s development prospects, anticipating wholesome revenue and margin CAGR over the following few years.
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We’ve got collated views from 5 brokerage corporations which have initiated protection on LG Electronics India. Have a look:
Emkay International Monetary Companies
Emkay has a purchase name on LG Electronics India with a goal value of ₹2,050, implying an 80 per cent upside potential.
Emkay underscored that LG, during the last three a long time, has constructed a formidable franchise, which leads in key massive equipment classes with premium positioning, leveraging its international R&D power, model energy, and superior execution.
Emkay mentioned after the mother or father’s technique of driving international development, India, which is the
The biggest equipment marketplace for the mother or father exterior the US and Korea is prone to play a big function and contribute one-third of world development over the following 5 years, mentioned Emkay.
“On the growth into mass-premium classes, a better deal with B2B (HVAC, info shows, and so forth), and rising exports, India would emerge as a key export hub with the beginning of the third plant in FY27E and localised innovation-led launches,” Emkay mentioned.
“This, amid indicators of demand revival, is about to speed up LG’s development, with 13 per cent income CAGR over FY26E-28E translating into 14 per cent EPS CAGR, strong common RoE and RoCE of almost 32 per cent and 44 per cent, respectively, coupled with web money of ₹37 billion in FY25 (almost ₹50 billion in FY28E), FCFE yield (foundation gross sales) of seven.6 per cent by FY28E, and a mean dividend payout of 65 per cent (FY27E-28E),” mentioned Emkay.
Motilal Oswal Monetary Companies
Motilal Oswal has a purchase name on LG Electronics India inventory with a goal value of ₹1,800, implying a 58 per cent upside potential.
Motilal expects LG Electronics India to commerce at larger multiples, given robust return ratios (RoE and RoIC of almost 30 per cent and 66 per cent, respectively, in FY28E) and better OCF conversion, averaging almost 74 per cent throughout FY26-28E.
A strategic deal with localisation, which is predicted to additional develop gross margin, focused development in high-margin B2B and AMC enterprise, and a management place throughout key product classes are additionally the important thing positives.
Motilal expects an EBITDA and PAT CAGR of 10 per cent and 12 per cent, respectively, over FY25-28, with the EBITDA margin reaching 12.6 per cent and 13.1 per cent in FY27 and FY28, respectively, versus 12.1 per cent in FY26 and 12.8 per cent in FY25.
The brokerage agency expects an EBITDA and revenue CAGR of almost 15 per cent and 17 per cent, respectively, over FY26-28.
PL Capital
PL Capital has a purchase name on the inventory with a goal value of ₹1,780, implying a 56 per cent upside potential.
PL Capital underscored that an in depth distribution community and premium model positioning guarantee LG Electronics India’s market management throughout classes.
“We imagine LG Electronics India is well-positioned to capitalise on the expansion alternatives in house home equipment and client electronics given its market management throughout merchandise, robust manufacturing capabilities, numerous product portfolio, and powerful model loyalty,” mentioned PL Capital.
“We estimate income, EBITDA, PAT CAGR of 9.9 per cent, 10.9 per cent, and 9.3 per cent, respectively, over FY25-28E led by wholesome income development throughout segments, capability growth plans, growth of AMC and B2B companies, and deal with native uncooked materials sourcing,” mentioned PL Capital.
Vintage Stoke Broking
Vintage has a purchase name on LG Electronics India with a goal value of ₹1,725, implying a 51 per cent upside potential.
Vintage believes LG Electronics India is a compelling funding alternative as a result of firm’s robust financials and distinctive return ratios.
Vintage forecasts income, EBITDA, and PAT CAGRs of 11 per cent, 12 per cent, and 12 per cent, respectively, over FY25-28E, with an OPM (working revenue margin) of 12.3 per cent, 12.8 per cent, and 12.9 per cent in FY26E, FY27E, and FY28E, respectively.
Equirus Securities
Equirus Securities has initiated protection on LG Electronics India with a “lengthy” suggestion, which is akin to a purchase name, with a goal value of ₹1,705 at 40 occasions on ahead EPS of ₹43.
Equirus identified that LG Electronics India is India’s main client durables firm, which holds commanding worth shares throughout key classes – washing machines (33.5 per cent), fridges (29.9 per cent), panel TVs (27.5 per cent), inverter ACs (20.6 per cent), and convection microwave ovens (51.4 per cent) as of June 2025.
“Whereas some could argue that LG Electronics India has misplaced market share in recent times, we view this as a deliberate strategic determination to vacate the mass phase, permitting it to strengthen and preserve management inside the premium class,” mentioned Equirus.
Equirus mentioned that whereas it’s modelling income, EBITDA, and PAT CAGRs of 11 per cent, 13 per cent, and 9 per cent, respectively, manufacturers resembling LG Electronics India, buying and selling at 35 occasions on FY25A, stay an especially engaging entry level.
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Disclaimer: This story is for academic functions solely. The views and suggestions expressed are these of particular person analysts or broking corporations, not Mint. We advise buyers to seek the advice of with licensed consultants earlier than making any funding choices, as market situations can change quickly and circumstances could range.
