LG share price target at Rs 2,050? Korean giant sparks record frenzy with 8 buy calls on Day 1

LG Electronics India’s Rs 11,600 crore IPO has triggered what market veterans are calling an extraordinary show of analyst confidence on Tuesday, bagging at least seven buy ratings within minutes of its spectacular stock market debut—a rare feat that underscores the investment community's bullish conviction on India's consumer durables sector.

The Korean appliances giant's shares rocketed 50% above their issue price of Rs 1,140, listing at Rs 1,710 on the NSE and Rs 1,715 on the BSE. The stellar debut also shattered the "Rs 10,000 crore IPO curse," where mega offerings have consistently failed to deliver listing-day pops.

Emkay Global Financial Services led the charge with the street's most aggressive stance, slapping a Rs 2,050 price target on the stock—implying an eye-popping 80% upside from the IPO price. The brokerage valued LG India at 50 times the September 2027 estimated price-to-earnings ratio, representing a 10% premium to Havells India.

"LG has, over the last three decades, 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 analysts wrote, projecting 13% revenue CAGR over FY26-28E, translating into 14% EPS CAGR.

The wave of buy ratings came from heavyweights including Nomura, Emkay, Prabhudas Lilladher, Antique Stock Broking, Ambit Capital, ICICI Securities, Motilal Oswal, and Equirus, with price targets ranging from Rs 1,705 to Rs 2,050.

Nomura initiated coverage with a buy rating and Rs 1,800 target price, implying 58% upside from the IPO price. The Japanese brokerage projected robust return ratios, estimating post-tax ROE/ROIC of 31%/56% in FY28F. "We estimate EBITDA margins will improve from 12.8% in FY25 to ~14.1% in FY28F led by better mix, operating leverage, and localization," Nomura analysts said, forecasting 10% revenue CAGR and 14% EPS CAGR over FY25-28F.

ICICI Securities highlighted LG's commanding market position, noting the company has generated core return on equity exceeding 90% when adjusted for cash and tax-adjusted other income. "Its share-of-voice is higher than that of peers, indicating potential for market share gains," the brokerage said, initiating coverage with a buy rating.

The company's stranglehold on premium segments particularly caught analysts' attention. Prabhudas Lilladher pointed out that LG commands leading market share in the premium category across washing machines (36.9%), refrigerators (43.2%), air conditioners (27.2%), and televisions (62.9%). The brokerage set a target of Rs 1,780, valuing the stock at 42 times FY28 earnings.

Ambit Capital emphasized LG's growth runway, noting that the company is a top-three player across key categories on both margins and revenue share. "Growth tailwinds led by underpenetration (10-40%) continue to play out, with premiumization opportunities across categories," Ambit analysts wrote, setting a 12-month target of Rs 1,820 that implies 43 times one-year P/E—a 60% upside.

The brokerage added that LG's current valuation of 30 times FY27 P/E trades at a 38% discount to the FMCG pack despite "superior growth possibilities given lower category penetration and higher RoCE."

Motilal Oswal initiated coverage with a Rs 1,800 target, premised on 40 times FY28 estimated EPS. "We expect LGEIL to trade at higher multiples, given the strong return ratios, higher OCF conversion, a strategic focus on localization, targeted growth in high-margin B2B and AMC revenues, and a leadership position across key product categories," the brokerage said.

Antique Stock Broking emphasized the company's exceptional financial performance, noting revenue CAGR of 13.1% and profit after tax CAGR of 22.3% between FY22-25, along with "exceptional return ratios" of 36.9% RoE and 38.5% RoCE in FY25. The firm set a target price of Rs 1,725, valuing the stock at 40 times first-half FY28 EPS.

"With low penetration across key categories and a large, expanding TAM, LGEIL is ideally positioned to benefit from strong tailwinds in consumer discretionary spending, further aided by supportive government policies," Antique analysts wrote.

Several brokerages highlighted LG India's growing strategic importance to its Korean parent. ICICI Securities noted that revenue contribution of LG India to the parent's revenue climbed from 3.5% in CY21 to 4.3% in CY24, "highlighting the growing importance of the Indian business to the parent."

Emkay pointed out that following the parent's "Global South" strategy announced in July 2025, India—the largest appliance market for the parent outside the US and Korea—would contribute one-third of global growth over five years.

Export potential emerged as another key investment thesis. Ambit Capital noted that exports, currently at 6% of revenue, "could be a key optionality" as the Sri City plant doubles capacity, potentially boosting the share of exports by four percentage points to 10% by FY28.

Equirus Securities initiated coverage with a "long" rating and Rs 1,705 target, modeling FY25-FY28 revenue/EBITDA/PAT CAGR of 11%/13%/9%. "Brands like LGEIL—with strong brand equity, extensive distribution, leadership across categories, and industry-leading margins—are trading at 35x FY25A earnings," the brokerage noted.