Lenskart share price rallied nearly 4% in early trade on Friday after global brokerage firm Jefferies assigned a ‘Buy’ call on the stock, expecting further upside potential. Lenskart shares gained as much as 3.86% to ₹423.45 apiece on the BSE.
Jefferies initiated its coverage on the recently listed Lenskart shares with a ‘Buy’ rating and a target price of ₹500, valuing it at 50x FY28E pre-Ind AS EBITDA, broadly in-line with high-growth Consumer & Internet peers. According to Jefferies, the premium valuation should be viewed in the context of opportunity and leadership.
Lenskart share price target implies an upside potential of nearly 23% from its previous closing price.
Lenskart Solutions is India’s largest organized eyewear retailer and among Asia’s top two players, operating an omnichannel model with deep vertical integration across design, manufacturing, and retail. India remains the company’s core profit engine with over 85% of EBITDA, but international expansion adds strategic optionality.
Moat & International Strategy
India’s eyewear market, valued at $9 billion in FY25, is underpenetrated and growing at 13% CAGR. Organized retail penetration of around 24% is rising, with Lenskart now a firm leader. Despite this, Jefferies said that Lenskart’s current share is just 5% of the overall market, indicating substantial growth headroom.
According to Jefferies, the company’s vertically integrated omni-channel model ensures cost efficiency, rapid delivery, and superior customer experience
Lenskart’s global presence spans 10+ countries via organic entry and acquisitions and the brokerage firm sees this international foray as a strategic rationale for Lenskart. Despite modest industry growth abroad (3–7%), share gain potential exists along with crossmarket synergies, and profitability improvement ahead.
Financials
Jefferies expects Lenskart to post a revenue CAGR of ~24% over FY25–28E led by volume growth (mainly TU & frequency). Adjusted EBITDA is estimated to grow at more than 50% CAGR with margin expansion led by operating leverage and international gross margin improvement. EPS is expected to grow at 44% CAGR. Lenskart’s balance sheet is net cash, with rising return ratios and FCF.
Lenskart Share Price Performance
Lenskart shares made a muted debut in the Indian stock market on November 10. Lenskart share price got listed at ₹390.00 apiece on the BSE, a discount of 2.99% to the issue price of ₹402 per share.
Since debut, Lenskart share price has gained 8.5% from its listing price and more than 5% from its issue price.
At 9:35 AM, Lenskart share price was trading 1.12% higher at ₹412.25 apiece on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
