LG Electronics India IPO Rocks Market with 50% Listing Pop, Experts Caution on High Valuations

LG Electronics India IPO Rocks Market with 50% Listing Pop, Experts Caution on High Valuations

October 16, 2025

Hold tight! LG Electronics India just stormed the stock market with a dazzling debut after its record-breaking Rs 11,607 crore IPO. The shares opened at a mind-blowing 50% premium, sending waves of excitement and a bit of FOMO (fear of missing out) through investors. But wait! Despite this sparkling start, experts advise caution. After a wild ride climbing as much as 2.3% during the day, LG's stock eased back near its previous close, showing that this journey will be thrilling but volatile. "Post the solid listing, LG trades close to 55x TTM PE," said Aishvarya Dadheech, Founder and CIO of Fident Asset Management. She likes LG's strong brand and distribution but warns, "valuations are now at par to other listed peers." Dadheech suggests investors should wait for a better entry point. She says, "waiting for some formal guidance by the company in the coming months" is wise. Plus, LG’s main money-makers, like washing machines and refrigerators, face stiff battle from multinational giants, and growth has slowed because the previous COVID-era jump was unusually high. Still, not all is gloom! The long-term story sparkles bright. Emkay Global Financial Services is cheering with a price target of Rs 2,050 per share, promising around 22% growth from the last close. Their bet is on LG’s stronghold in premium appliances, powerful brand image, and global research and development strength. Motilal Oswal echoes the cheer with a target of Rs 1,800 per share, highlighting LG’s strong returns, focus on local manufacturing, and growth in high-margin business segments. They said, "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." Prabhudas Lilladher is not far behind, valuing LG at Rs 1,780 per share and pointing to its "market leadership across products, strong manufacturing capabilities, diverse product portfolio, and strong brand loyalty." How huge was this IPO? A staggering Rs 4.39 lakh crore in bids poured in! This crushed the record set by Bajaj Housing Finance’s Rs 3.2 lakh crore in 2024. At about 1:20 pm, LG shares were trading at Rs 1,694, just slightly up by 0.2% on the NSE. So, the big question: Should you jump on the LG train now or watch from the sidelines? Experts say, enjoy the show but wait for the right moment to hop aboard. The market buzz is just beginning, and for LG Electronics India, the story promises flavor, fire, and fireworks! Stay tuned and keep your eyes peeled.

Read More at Economictimes

Tags: Lg electronics, Ipo, Stock market, Investors, Valuation, Brokerage targets,

Veer Sharma

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