LG Electronics India Stock Soars 50.4% in Stellar Market Debut
LG Electronics India shares surged 50.4% on their trading debut, valuing the company at $13.07 billion and surpassing its South Korean parent’s market capitalisation of nearly $10 billion. This marks India’s most sought-after IPO since 2008.
Key Trading Details
- Stock opened at Rs 1,710.10 on NSE, up from issue price of Rs 1,140
- Touched intraday high of Rs 1,749
- Settled at Rs 1,695 as of 12:08 PM
- Best billion-dollar IPO debut since Eternal in 2021
Brokerage Recommendations
Leading brokerages have issued bullish ratings on the stock:
- Prabhudas Lilladher: “Buy” rating with target price of Rs 1,780
- Motilal Oswal Financial Services: “Buy” rating with target price of Rs 1,800
Motilal Oswal analysts stated: “We expect LGEIL to trade at higher multiples, given the strong return ratios, higher OCF conversion, a strategic focus on localisation, targeted growth in high-margin B2B and AMC revenues, and a leadership position across key product categories.”
Market Growth Outlook
India’s home appliances and consumer electronics market (excluding mobile phones) is projected to grow at 14% CAGR over CY24-29. The brokerage noted: “LG Electronics India (LGEIL), with its leadership across key product categories, is well-positioned to capitalise on this growth opportunity.”
Meanwhile, LG Electronics reported operating profit of 688.9 billion won ($482.6 million) for the September quarter, down 8.4% year-on-year.
