Interestingly, while peers such as Maruti Suzuki and ITC took years to surpass their parent companies’ market capitalisation, LG Electronics India achieved that milestone on day one as a public company.
Investor enthusiasm was evident as the stock surged to an intra-day high of ₹1,749 on the NSE, compared with its issue price of ₹1,140.
Indian subsidiaries of global multinationals often command premium valuations, and LG Electronics India is no exception. The stock trades at roughly 43 times one-year forward earnings, compared to its parent’s 8.4 times, according to Bloomberg data.
For the 12 months that ended in June 2025, LG Electronics Inc. reported a net profit of $476 million on revenue of $63.2 billion, with an EBITDA margin of 7.2%. In contrast, LG Electronics India posted a net profit of $248 million in FY25 on $2.75 billion in revenue, reflecting higher profitability and investor confidence in India’s consumer growth story.
Brokerages remain upbeat on the newly listed stock. Motilal Oswal Financial Services, Emkay Global Financial Services, and Equirus Capital have all initiated coverage with Buy ratings and target prices ranging from ₹1,705 to ₹2,050. Among them, Emkay has the highest 12-month target of ₹2,050.
With its stellar market debut, LG Electronics India also marked the best first-day gain for an IPO raising at least ₹10,000 crore since Coal India’s 40% surge in 2010.
(Edited by : Hormaz Fatakia)
