SYNOPSIS: Emkay initiated coverage on Lenskart with a Buy rating, citing strong eyewear market growth, technology-led advantages, rapid store expansion, improving margins, and a solid balance sheet supporting long-term domestic and global growth.
Shares of a technology-driven eyewear company with integrated operations spanning designing, manufacturing, branding and retailing are in focus on the stock exchanges, after receiving a bullish initiation by Emkay Global Financial Services.
The brokerage believes the company has the potential to deliver up to 6x revenue growth over the next decade, driven by favourable industry tailwinds, technology-led execution, and improving profitability.
With a market cap of Rs. 78,286 crores, at 10:06 a.m., shares of Lenskart Solutions Limited were trading at Rs. 451.25 on Tuesday, compared to its previous closing price of Rs. 456.2 on BSE.
The Rs. 7,278-crore Lenskart IPO made a muted debut on Monday, 10th November, listing at Rs. 390 apiece on the BSE, a discount of Rs. 12, or nearly 3 percent, to the issue price of Rs. 402 per share. On NSE, Lenskart shares got listed at Rs. 395 apiece, a discount of Rs. 7, or 1.74 percent to the IPO price of Rs. 402 per share. Since its listing, the shares have gained about 10 percent.
Brokerage Target & Outlook
Brokerage firm Emkay Global Financial Services has initiated coverage on Lenskart Solutions Limited with a “buy” rating and a target price of Rs. 525 per share, implying a potential upside of around 15 percent from its previous close. The valuation is based on a DCF-implied multiple of 56x Dec-27E EBITDA.
According to Emkay, India’s eyewear market – estimated at $9 billion – is well placed for steady growth. Key drivers include a 700 basis points (bps) cut in GST, rising vision and refraction-related issues, and the growing acceptance of eyewear as both a necessity and a fashion accessory. Together, these factors are expected to support an industry CAGR of about 13 percent, as per Redseer estimates.
The brokerage highlighted that Lenskart is currently India’s largest eyewear retailer, with a market share of 5 percent, and is steadily working towards building a scalable global eyewear platform.
Technology remains at the core of Lenskart’s strategy. Emkay pointed to its strong focus on backend automation and vertical integration, along with consumer-facing innovations such as remote optometry and virtual try-ons. The company also uses geo-analytics and Vision AI to guide store expansion and merchandising decisions.
As the business scales, these strengths are beginning to reflect in operating performance. Emkay expects same-store sales growth of 15-16 percent, faster deliveries with next-day service across 58 cities, and continued rapid network expansion, with around 450 new stores likely to be added in FY26E.
Lenskart has also started gaining meaningful traction internationally, particularly in markets such as Singapore and Dubai, which the brokerage sees as encouraging signs for its global ambitions.
Long-term Growth
Emkay described Lenskart’s store economics as attractive, with an average store-level payback of around 10 months, supported by high throughput and relatively low capital intensity. This, it noted, compares favourably with other discretionary retail peers.
While acknowledging that valuations may look optically expensive following the company’s recent turnaround in profitability, Emkay believes there is significant headroom ahead. The brokerage estimates that Lenskart could achieve nearly 6x revenue growth in India over the next decade, translating into a 20 percent CAGR. A gradual shift toward company-owned stores and operating leverage from growth investments could also support average margin expansion of about 150 bps annually, driving an EBITDA CAGR of around 30 percent.
Over the medium term, Emkay expects Lenskart to outperform peers. For FY25-28E, it forecasts revenue CAGR of 25 percent and EBITDA CAGR of 50 percent, compared with 12-26 percent for other major retail players. It also flagged several scalable opportunities within the business that could further strengthen growth prospects.
Within the eyewear segment, Emkay sees Lenskart as the clear market leader, with more than three times the scale of the next largest player, Titan Eyewear. It noted, most competitors focus on third-party premium brands, which make up only about 5 percent of India’s eyewear market by volume.
Finally, the brokerage highlighted Lenskart’s strong balance sheet, with net cash of around Rs. 4,000 crore, which it believes provides ample flexibility to fund expansion and pursue long-term growth opportunities.
Lenskart reported a significant growth in revenue from operations, experiencing a year-on-year increase of around 21 percent, from Rs. 1,736 crores in Q2 FY25 to Rs. 2,096 crores in Q2 FY26. Likewise, its net profit increased during the same period from Rs. 86 crores to Rs. 103 crores, representing an impressive rise of nearly 20 percent YoY.
Lenskart Solutions Limited is engaged in the business of designing, manufacturing, branding, and retailing its own-branded eyewear products. The company sells prescription eyeglasses, sunglasses, and other products, including contact lenses and eyewear accessories.
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