LG Electronics hits record low as 3-month lock-in ends; time to accumulate?

LG Electronics share price declined after around 15 million shares of the company's outstanding equity, became eligible for trading following the expiry of the lock-in

LG Electronics shares fell 4.4 per cent on BSE and hit an all-time low at ₹1,392.8 per share. The selling pressure on the counter came after its three-month lock-in period ended. Lock-in period is a mandatory time frame during which certain shareholders are prohibited from selling their shares in the open market. 

At 10:13 AM, LG Electronics’ share price was trading 1.82 per cent lower at ₹1,431.1 on the BSE. In comparison, the BSE Sensex was down 0.16 per cent at 84,829.06. The stock commands a market capitalisation of ₹2,559.97 crore, with a 52-week high at ₹1,736.4. 

 

The stock is currently trading nearly 17 per cent below its listing price of ₹1,715 on BSE. However, it is 25 per cent above its issue price of ₹1,140 per share. LG Electronics made a strong debut on Dalal Street on October 14, 2025. 

 

 

Around 15 million shares, or about 2 per cent of the company's outstanding equity, became eligible for trading following the expiry of the lock-in, according to Nuvama Institutional Equities. 

Analyst’s view on LG Electronics 

Kranthi Bathini, equity strategy, WealthMills Securities, suggests accumulating LG Electronics stock in a staggered manner.

 

“Valuations look decent; however, the next couple of quarters’ results are crucial—ideally, investors should track at least one or two quarters of post-listing performance before making serious allocations to recently listed initial public offerings (IPOs),” he said. 

 

He added: Given the company’s strong long-term outlook and its formidable presence in India’s white goods and home appliances space, the impact of the lock-in ending should be minimal, and investors can continue to hold while starting gradual accumulation.  "LG Electronics India remains a compelling long-term investment backed by its dominant market position, including a 33.4 per cent share in washing machines and 29.9 per cent in refrigerators," said Nitant Darekar, research analyst at Bonanza Portfolio.  He added: While Q2 FY26 margins were pressured by goods and services tax (GST) transition disruptions and commodity inflation, the company’s ₹5,000 crore capacity expansion and 'Global South' export strategy signal strong conviction.   Darekar expects a recovery driven by increased localization, premiumisation, and the new 'LG Essentials' value play targeting underpenetrated segments. With robust liquidity of ₹4,280 crore and strong brand momentum heading into the festive season, the long-term outlook remains positive despite near-term volatility.

LG Electronics Q2 results

In the September quarter (Q2FY26), LG Electronics India’s net profit declined 27.3 per cent to ₹389.43 crore, as against ₹535.7 crore a year ago. Its net sales in the quarter marginally rose 0.9 per cent to ₹6,170.4 crore in the July-September quarter.

 

Emkay Global Financial Services, in its post-Q2 note, said that LG Electronics’ Q2FY26 results were weak, similar to peers’ due to GSTled demand postponement by both trade partners and consumers, weak consumer sentiment, and muted business-to-business (B2B) revenue in the home electronics segment due to tariff-related impact. Despite this, LG gained market share in both the home appliances and electronics segments, thus reinforcing its category leadership.

 

The brokerage maintained its FY27-28 estimates and built in FY26E-28E revenue compound annual growth rate (CAGR) of 14 per cent with Earnings before interest, tax, depreciation and amortisation margin (Ebitdam) of 10.7 per cent/12.5 per cent/12.8 per cent in FY26E/FY27E/FY28E, respectively.   Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers discretion is advised.