LG Electronics IPO lists 50% higher; brokerages see 20% upside

On Tuesday, the LG Electronics shares debuted for Rs 1,710 on BSE and Rs 1,715 on NSE, around 50% higher over its upper band of issue price, slated at Rs 1,140 per share, making it one of the standout IPO listings of the year.  The IPO drew bids worth around Rs 4.39 lakh crore, with a subscription rate of 54.02 times overall, including 166.51 times in the Qualified Institutional Buyers (QIB) segment, Retail Investors subscribing for 3.55 times, and Non Institutional Buyers with 22.44 times, respectively. Market participants and analysts anticipated one of the strongest stock market debuts of 2025.?

Market Leadership and New Offerings

LG Electronics India holds leading positions in several segments of the consumer electronics market, such as washing machines, refrigerators, air conditioners, and microwave ovens, with market shares above 20% in each category, like Refrigerators, Washing machines, Inverter Air Conditioners, Panel televisions, and so on. The brand has earned its status by consistently bringing innovative products to India, like AI-powered OLED and QNED/Neo TVs, which represent the latest wave in premium home entertainment. The company’s expansion strategy includes a planned Rs 5,001 crore investment to set up a new manufacturing plant in Andhra Pradesh, thus increasing production capacity and strengthening its supply chain localization. This initiative complements LG’s premiumisation drive and its growing focus on B2B solutions (such as HVAC and display systems), placing LG at the forefront of India’s product innovation and domestic manufacturing quality.?

Financial Performance

LG Electronics India sustained strong growth in its latest fiscal year. For FY25, revenue stood at Rs 24,366 crore, while net profit rose sharply to Rs 2,203 crore, a 46% year-on-year increase. LG’s steady earnings were attributed to rising demand for premium appliances, improved cost efficiency, and higher localization of inputs, while over 54% of its materials are sourced and manufactured internally as of June 30, 2025. LG India’s performance is further bolstered by improving EBITDA margins from 9.54% in FY23 to 12.76% in FY25 and PAT margins supported by a large retail footprint and efficient manufacturing scale.?

Key Ratios and Balance Sheet Strength

The company reported a near-zero debt profile, maintaining a debt-to-equity ratio of 0, which is better than that of its peers. Its return ratios are industry-leading, with ROE at 37.13% and ROCE at 42.91% for FY25. LG Electronics India’s price-to-earnings (P/E) multiple stands at 35x FY25 earnings, which is considered a steep discount to sector averages, according to street analysts' views. The steady margin and robust cash flows have enabled LG Electronics to fund growth from internal accruals and invest in product innovation without financial strain.?

Brokerage Views and Targets

Leading brokerages have expressed bullish views, with Motilal Oswal and Nomura setting first-year targets at Rs 1,800 while Emkay Global projects upside potential of up to Rs 2,050, translating to 20% upside from the listing price of Rs 1,710. Brokers cite LG’s dominance in high-growth segments, increasing localization, premiumisation strategy, and expansion into B2B and exports as key drivers. Strong cash flows, robust returns, and competitive valuation compared to peers provide further upside, with analysts suggesting the stock could eventually re-rate to sector multiples of 50 to 55x earnings as per various sources.?

Conclusion

LG Electronics India’s listing is supported by exceptional operational metrics, sustained innovation, and robust financial discipline. With favorable brokerage targets and clear structural growth drivers, LG Electronics India stands poised for continued momentum and value creation, distinguishing itself as one of the top IPOs in 2025 IPO specifically in the consumer electronics sector.?