Brokerage firm Nuvama has maintained its Buy rating on LG Electronics India while raising its target price to ₹1,990 from ₹1,910 earlier. According to reports from ET Now, the revised target price is set for September 2027, with the brokerage basing its valuation on around 48 times the estimated September 2028 earnings per share (EPS). The latest view came after Nuvama's interaction with the company's management, which reinforced the positive outlook for the consumer electronics company.
The company has launched its ₹11,607.01 crore IPO with shares opening for subscription on October 7, 2025, and listing scheduled for October 14, 2025. The public issue comprises 10.18 crore fresh shares with a minimum investment of ₹14,820. The IPO has received overwhelming investor response with QIB subscription at 166.51x, retail individual investor subscription at 3.55x, and non-institutional investor subscription at 22.45x. The strong subscription reflects positive market sentiment toward the consumer electronics major.
The brokerage highlighted several key factors supporting its positive view, including the increasing contribution from premium products. As reported by ET Now, higher sales of premium appliances, along with localisation and price increases, could help LG Electronics manage the impact of rising component and commodity costs. The company has reiterated its expectation of mid-teen revenue growth in FY27 and operating margins moving into the early double-digit range. LG Electronics is also looking to increase the contribution of exports to around 8-10 per cent of total revenue in FY27, with an ambition to take the share to about 20 per cent over the next three years.
Domestic demand has shown encouraging signs with positive trends during July and August, while the Onam season also remained strong, according to the report. The company's washing machine business has benefited significantly from premiumisation, with sales of fully automatic top-load washing machines increasing by around 50 per cent. Additionally, dishwasher sales grew nearly 75 per cent year-on-year. To manage higher input costs, LG Electronics has increased prices across various product categories by around 7-12 per cent.
The company's international presence has expanded significantly, with LG Electronics now operating across 65 countries, compared with 47 countries around the time of its IPO. As reported by ET Now, the company's strategy focuses on premiumisation, higher localisation and market-share gains to support both revenue growth and profitability. The brokerage believes these factors could support both revenue growth and profitability, with the company's management expressing confidence in achieving its growth targets.
