LG Electronics shares: Brokerages see up to 80% upside potential— what makes them bullish after stellar debut?

LG Electronics India: LG Electronics’ shares debuted at a solid premium of up to 50 per cent on Tuesday, October 14, and analysts believe the stock may still have significant upside potential. Several top brokerage firms in India are bullish on LG Electronics India, projecting gains of up to 80 per cent.

LG Electronics’ share price got listed at ₹1,715 on the BSE — a premium of ₹575, or 50.44 per cent, over the issue price of ₹1,140. On the NSE, the stock debuted at ₹1,710.10, representing a 50 per cent premium.

LG Electronics is a market leader across key home appliance and consumer electronics categories, with a strong presence in refrigerators, washing machines, panel TVs, inverter air-conditioners, and microwave ovens.

Brokerages are upbeat about the company’s growth prospects, expecting healthy profit and margin CAGR over the next few years.

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We have collated views from five brokerage firms that have initiated coverage on LG Electronics India. Take a look:

Emkay Global Financial Services

Emkay has a buy call on LG Electronics India with a target price of ₹2,050, implying an 80 per cent upside potential.

Emkay underscored that LG, over the last three decades, has built a formidable franchise, which leads in key large appliance categories with premium positioning, leveraging its global R&D strength, brand power, and superior execution.

Emkay said after the parent’s strategy of driving global growth, India, which is the

The largest appliance market for the parent outside the US and Korea is likely to play a significant role and contribute one-third of global growth over the next five years, said Emkay.

“On the expansion into mass-premium categories, a higher focus on B2B (HVAC, information displays, etc), and rising exports, India would emerge as a key export hub with the start of the third plant in FY27E and localised innovation-led launches,” Emkay said.

“This, amid signs of demand revival, is set to accelerate LG’s growth, with 13 per cent revenue CAGR over FY26E-28E translating into 14 per cent EPS CAGR, robust average RoE and RoCE of nearly 32 per cent and 44 per cent, respectively, coupled with net cash of ₹37 billion in FY25 (nearly ₹50 billion in FY28E), FCFE yield (basis sales) of 7.6 per cent by FY28E, and an average dividend payout of 65 per cent (FY27E-28E),” said Emkay.

Motilal Oswal Financial Services

Motilal Oswal has a buy call on LG Electronics India stock with a target price of ₹1,800, implying a 58 per cent upside potential.

Motilal expects LG Electronics India to trade at higher multiples, given strong return ratios (RoE and RoIC of nearly 30 per cent and 66 per cent, respectively, in FY28E) and higher OCF conversion, averaging nearly 74 per cent during FY26-28E.

A strategic focus on localisation, which is expected to further expand gross margin, targeted growth in high-margin B2B and AMC business, and a leadership position across key product categories are also the key 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 firm expects an EBITDA and profit CAGR of nearly 15 per cent and 17 per cent, respectively, over FY26-28.

PL Capital

PL Capital has a buy call on the stock with a target price of ₹1,780, implying a 56 per cent upside potential.

PL Capital underscored that an extensive distribution network and premium brand positioning ensure LG Electronics India’s market leadership across categories.

“We believe LG Electronics India is well-positioned to capitalise on the growth opportunities in home appliances and consumer electronics given its market leadership across products, strong manufacturing capabilities, diverse product portfolio, and strong brand loyalty,” said PL Capital.

“We estimate revenue, EBITDA, PAT CAGR of 9.9 per cent, 10.9 per cent, and 9.3 per cent, respectively, over FY25-28E led by healthy revenue growth across segments, capacity expansion plans, expansion of AMC and B2B businesses, and focus on local raw material sourcing,” said PL Capital.

Antique Stoke Broking

Antique has a buy call on LG Electronics India with a target price of ₹1,725, implying a 51 per cent upside potential.

Antique believes LG Electronics India is a compelling investment opportunity due to the company’s strong financials and exceptional return ratios.

Antique forecasts revenue, EBITDA, and PAT CAGRs of 11 per cent, 12 per cent, and 12 per cent, respectively, over FY25-28E, with an OPM (operating profit 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 coverage on LG Electronics India with a “long” recommendation, which is akin to a buy call, with a target price of ₹1,705 at 40 times on forward EPS of ₹43.

Equirus pointed out that LG Electronics India is India’s leading consumer durables company, which holds commanding value shares across key categories – washing machines (33.5 per cent), refrigerators (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.

“While some may argue that LG Electronics India has lost market share in recent years, we view this as a deliberate strategic decision to vacate the mass segment, allowing it to strengthen and maintain leadership within the premium category,” said Equirus.

Equirus said that while it is modelling revenue, EBITDA, and PAT CAGRs of 11 per cent, 13 per cent, and 9 per cent, respectively, brands such as LG Electronics India, trading at 35 times on FY25A, remain an extremely attractive entry point.

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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.