LG Electronics India share price extended gains for second consecutive day on Wednesday, October 15. The home appliances and consumer electronics seller stock rose as much as 1 per cent to ₹ 1708.35.
LG Electronics stock made a bumper stock market debut on Tuesday, listing at 50 per cent premium over the IPO price. The stock got listed at ₹1715 on the BSE and at ₹1,710.10 on the NSE.
Ahead of the listing, the shares of LG Electronics IPO were trading at ₹1,562, indicating a listing premium of 37 per cent.
LG Electronics IPO was entirely an offer for sale of 10.18 crore shares, with price band fixed at ₹1,080 to ₹1,140 per share.
LG Electronics’ ₹11,607 crore IPO became the most oversubscribed public offering in the Indian stock market, attracting bids totaling nearly ₹4.5 lakh crore.
The segment reserved for qualified institutional buyers (QIBs) was massively oversubscribed at 166.51 times, while the non-institutional investors’ portion saw 22.44 times subscription. The retail individual investors (RIIs) category received 3.54 times subscription.
LG Electronics share price: Should you buy, sell or hold?
Brokerage firm Motilal Oswal has initiated coverage on LG Electronics stock and has given ‘buy’ rating, with a target price of ₹1,800 apiece, impying 58 per cent upside potential.
“We initiate coverage on LGEIL with a BUY rating and a TP of INR1,800, premised on 40x FY28E EPS. LGEIL should trade at higher multiple, given the strong return ratios, higher OCF conversion and a strategic focus on localization.”
On the other hand, brokerage firm Emkay Global Financial Services sees an upside potential up to 80 per cent. The brokerage firm has assigned ‘buy’ rating with a target price of ₹2,050.
“Following a relatively muted ~6% EPS CAGR over FY19-26E, we expect a growth revival, with revenue/EPS CAGR of ~13/14% over FY26E-28E on the back of stable margins (~13%) and a net-cash B/S, leading to robust return ratios (32% RoE /44% RoCE), and an FCFE yield (basis sales) of ~7.6% by FY28E. We believe LG deserves a premium multiple given its diversified category leadership and renewed focus on growth via masspremium product expansion, coupled with high RoEs (~31-33% over FY26E-28E) vs peers like Havells (~14-20%) and Blue Star (~18-21%) justifying a ~50x multiple,” it said.