Motilal Oswal Sees A Whopping 58% Upside In LG Electronics Share Price Post IPO Debut; Target Price Inside

LG Electronics India IPO Listing Today: LG Electronics India Limited share price is poised for a whopping 58% growth given its dominance in the electronics product industry, said Motilal Oswal in its report on Tuesday, October 14. LG Electronics received decent response during the IPO subscription period and is set to make debut in Dalal street today.

LG Electronics India Limited has fixed an upper price band of Rs 1,140 per share. LG Electronics' IPO GMP Today (grey market premium) jumped to Rs 430 on the listing day, indicating listing at Rs 15,750 per share (sum of IPO GMP Today and upper price band).

LG Electronics Share Price To See 58% Upside | Target Price

LG Electronics Limited has a high industry growth potential, and holds leadership position in its segment. With its stronghold across key products, LG Electronics is estimated to post a CAGR of ~14% over CY24-29, noted MOFSL in its report.

"The company plans to balance between premium and mass products as part of LG's global strategy and aims for premiumization of mass products, which should help to improve affordability and, in turn, increase its customer base," stated MOFSL in its report.

Focus on export, higher B2B and AMC segment revenue will help LG Electronics to target an over 25% year on ear growth in AMC revenue for the next few years. Premiumisation and localisation of business will help the company to drive its profitability. The company also plans to increase the share of raw materials sourced domestically to 63% in the next four years.

LG Electronics Share Price Recommendation With Target Price

Considering the upper price band of LG Electronics, Motilal Oswal noted, "We initiate coverage on LGEIL with a BUY rating and a TP of INR1,800, premised on 40x FY28E EPS." The company has a strong presence in online as well as offline markets in India. Its offline stores has a dominance in key consumer durables categories, such as TVs, washing machines, refrigerators, ACs, ovens, and water purifiers.

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