Consensus 'buy' stock: Another analyst joins the list of those betting on this new listing

Shares of LG Electronics India Ltd. are in focus on Tuesday, November 25, as brokerage firm Jefferies initiated coverage, projecting an upside of 17.2% from current levels.

Jefferies initiated with a "buy" rating on the stock, with a target price of 1,900 per share. It ended the previous session at 1,620.2 apiece.

Jefferies views LG Electronics India as a strong play on India discretionary, given its diversified mix.

Strong moats such as market leadership in multiple products, premium brand recall, new launches, entrenched distribution and backward integration, which result in industry-leading margins and high return ratios,  are some key aspects that keep Jefferies bullish on the newly listed MNC.

Jefferies went on to further state that the cash on LG Electronics India's balance sheet can support future growth.

Notal balance sheet cash can support future growth, the brokerage added.

Despite these advantages, the stock trades at 43 times its estimates for the financial year 2027, which is 10% - 15% below its peers Havells India Ltd. and Blue Star Ltd.

Earlier this month, LG Electronics India's chief sales officer Sanjay Chitkara said the company is expecting its business momentum to improve in the coming quarters. He said the company can return to its earlier pace of expansion. Chitkara added that he was hopeful it would get back to consistent double-digit revenue growth.

Shares of LG Electronics India were listed on the stock exchanges at a 50% premium last month. The stock listed on the National Stock Exchange at 1,710.1 against an issue price of 1,140, while it debuted on the Bombay Stock Exchange at 1,715.

All 15 analysts who have coverage on the stock have "buy" ratings.

The stock ended the previous session 1.35% lower at 1,620.2 apiece, down 5% from its listing price.

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