LG's shares will become Kuber's treasure!
Korean consumer giant LG Electronics India has made such a spectacular entry in the stock market with its IPO of ₹ 11,600 crore that even the big names of the market are surprised. Within minutes of listing on Tuesday, the company's shares received 'buy' advice from not one or two, but eight brokerage houses. Market experts say that such tremendous confidence on the very first day is no small thing for any IPO.
LG India The stock made a huge jump of almost 50% from its issue price of ₹ 1,140, making investors rich. It was listed at ₹ 1,710 on NSE and ₹ 1,715 on BSE. With this great start, LG also broke the myth under which IPOs larger than ₹ 10,000 crore were not able to give profits to investors on the day of listing.
As soon as it was listed in the stock market, there was a competition among the brokerage firms to show a bullish view on LG India. MK Global Financial Services was at the forefront of this race, which set a price target of ₹ 2,050 for this share. This target is about 80% more than the IPO price. MK Global said in its report that based on the estimated profit of September 2027, they have valued LG India at 50 times P/E ratio, which is 10% more than a company like Havells India.
"LG has built a strong empire in India over the past three decades. The company dominates the premium segment of the key large appliance categories based on its global R&D strength, strong brand values and superior performance," wrote analysts at MK Global. The brokerage has estimated that between financial years 2026 and 2028, the company's income will grow at an annual rate of 13% and profit at 14%. Apart from MK Global, many big names like Nomura, Prabhudas Lilladher, Antique Stock Broking, Ambit Capital, ICICI Securities, Motilal Oswal and Equirus have given targets ranging from ₹ 1900 to ₹ 2,050.
A report said that LG has dominance in the premium category. The company's market share is 36.9% in washing machines, 43.2% in refrigerators, 27.2% in air conditioners and 62.9% in televisions. Whereas Nomura has estimated that by the financial year 2028, the company's Return on Equity (ROE) can reach strong levels like 31% and Return on Invested Capital (ROIC) 56%. Antique Stock Broking also praised the excellent financial performance of the company and said that between the financial year 2022 and 2025, the company's revenue has grown at an annual rate of 13.1% and profit after tax has grown at an annual rate of 22.3%.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
