Nomura has initiated coverage on LG Electronics India with a ‘buy’ rating and a target price of Rs 1,800 per share, a day after the stock made a blockbuster debut on the exchanges with a nearly 50 percent listing gain. The brokerage said India’s favourable demographics and a structural shift towards premiumisation across categories position the company for sustained growth over the medium term.
According to Nomura, premiumisation is emerging as a secular theme in India’s consumer electronics market, providing a tailwind for revenue expansion. The firm believes value creation will depend on companies that innovate and localise their products to capture rising consumer aspirations. Nomura's price target implies an upside of about 7 percent on LG Electronics India stock.
LG Electronics India shares had listed on Tuesday at Rs 1,710.1 on the NSE, a 50 percent premium to the IPO price of Rs 1,140; the stock settled 48 percent higher at Rs 1,682.8. The Rs 11,607-crore IPO saw strong investor demand with a subscription of 54 times, valuing the company at Rs 1.14 lakh crore, higher than its South Korean parent’s market capitalisation.
Other brokerages such as Motilal Oswal and Prabhudas Lilladher have also initiated coverage with ‘buy’ ratings and similar price targets of Rs 1,780-1,800, citing LG’s strong brand leadership, broad distribution network, and localisation-driven growth strategy.
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