Up 43% in 2 months! Analysts see more steam left in this stock as post IPO rally continues

Brokerage firms continue to remain positive on LG Electronics India (LGEIL), the consumer electronics major which made its stock market debut earlier this year. The stock market analysts believe that the stock is headed for a strong upside in the coming months considering its market leadership, after delivering healthy listing gains after its stock market debut. LG India is a leading home appliance and consumer electronics player in India and operates the largest distribution and after-sales services network domestically. The company focuses on various consumer electronics and B2B businesses, spanning from home appliances & media entertainment to HVAC & commercial displays. It is a leading single-brand global home appliance player. LGEIL has been the number 1 player in major home appliance and consumer electronics in India (excluding mobile phones) for CY22, CY23, CY24 and 1HCY25 as per the market share by value in offline channels, said SBI Securities, adding that it operates one of the largest in-house home appliance and consumer electronics production capacities with capacity of 1.45 crore products. LGEIL plans a total investment outlay of Rs 5,000 crore for the Sri City facility, deployed in a phased manner over the next four to five years, funded through internal accruals, it said. "The GST rate realignment along with festive demand, is expected to lift consumer sentiment and drive recovery following a muted demand scenario which was witnessed in 1HFY26" Further, the new introduction of LG Essential lineup is gaining early traction, allowing the company to enter the underpenetrated regional markets, SBI Securities added. It has a target price of Rs 1,886 on the stock, while has cited slowdown in consumer demand, Change in consumer preferences, Competitive intensity as key risks. Shares of LG Electronics India dropped more than 1.45 per cent on Monday to Rs 1,635 against its previous close at Rs 1,659.40 on Friday. The stock is down nearly 6 per cent from its all-time peak at Rs 1,736.40 hit in October 2025, just day after listing. The stock is up 43 per cent from its IPO price. Motilal Oswal Financial Services estimate LGEIL’s revenue, Ebitda and PAT CAGR at 8 per cent, 8 per cent and 9 per cent over FY25-28. We estimate the H&A segment’s margin to be at 13 per cent in FY27/FY28, while the HE segment’s margin is projected at 15-16 per cent in FY27/FY28. "We anticipate a recovery in operating profit margin in FY27/28, driven by increased domestic sourcing of components, a focus on B2B and export markets, and growth in AMC revenue. The stock is trading reasonably at 45 times/39 times FY27/FY28E EPS. We value LGEIL at 45 times FY28E EPS to arrive at our target price of Rs 1,890," it added and reiterate 'buy' tag. LG Electronics India made its stock market debut in October 2025 as the company raised more than 11,600 crore via its IPO, by offering its shares for Rs 1,140 apiece. The stock is currently 43 per cent above its IPO price and brokerages see up to 16 per cent upside in the stock. LGEIL delivered a steady Q2FY26 despite an unfavourable summer, and geopolitical tensions as it maintained its industry-leading market share in washing machines, gained in RACs, refrigerators and TVs; thus, reflecting strong brand pull. Margins in Q2FY26 were impacted due to elevated ad-spend, GTM investment and strong channel support, which would normalise in H2FY26, said ICICI Securities. "LGEIL aims to increase localisation by 200–300bps annually, expecting it to be ~70%. Localisation shall reduce FX impact by 3-4 per cent; enabling it to expand margins. With Sri City plant’s commencement, LG would have better control over product quality and supply chain. It took 1.5-2 per cent price hikes in October to counter input cost pressures," it said with a 'buy' and target price of Rs 1,875.