Will Lenskart share price cross ₹500 anytime soon?

The shares of the Mid-Cap company, specializing in the design, manufacturing, branding, and omnichannel retail of eyewear products, including prescription eyeglasses, sunglasses, contact lenses, and accessories, are in focus after leading Global Brokerage firm Jefferies initiated a Buy rating.

With a market capitalization of Rs. 72,864.55 Crores on Monday, the shares of Lenskart Solutions Ltd rose upto 5.1 percent, reaching a high of Rs. 432.25 compared to its previous closing price of Rs. 411.20.

What Happened 

Lenskart Solutions Ltd, engaged in the design, manufacturing, branding, and omnichannel retail of eyewear products, including prescription eyeglasses, sunglasses, contact lenses, and accessories, is in focus after a leading Brokerage firm, Jefferies, reiterated its ‘Buy’ rating, setting a target price of Rs. 500 a share, a 19 percent upside from its current market level. In a bullish scenario, the brokerage sees the stock climbing to Rs 560, implying a 33 percent rise.

The reasons for the “Buy” target

Lenskart commands only ~5% share of India’s ~$9 billion eyewear market, despite being the country’s largest tech-led eyewear retailer. With the sector growing at ~13% annually and prescription eyeglasses forming over 70% of demand, the underpenetrated and largely unorganised market offers significant headroom for expansion. Its 2,100+ store network makes it the clear leader, yet the low market share underscores a long runway for growth.

A key competitive differentiator is Lenskart’s full control over its value chain, supported by manufacturing hubs in India, Singapore, and Dubai. This integration enables cost efficiency, faster fulfilment, and superior customer experience, strengthening its moat in a market where bespoke customisation and multi-step manufacturing challenge unorganised players. The experience-centre format offers lower capex and rapid payback, with ~80% of stores recovering costs within a year, company-operated expansion model.

Jefferies expects revenues to grow at ~24% CAGR during FY25–28, driven by rising transaction frequency and volume growth. India remains the “bedrock” of performance, accounting for >85% of EBITDA, while overseas markets provide long-term optionality. Strong unit economics and market dominance support substantial scalability across channels and geographies.

Adjusted EBITDA is projected to expand at >50% CAGR between FY25–28 and margin gains of ~600 bps. EPS is expected to grow at ~44% CAGR, while the company maintains a net cash balance sheet with improving free cash flows and return ratios. 

Jefferies notes that Lenskart’s valuation should be viewed in the context of its market leadership, vertically integrated cost advantages, and multi-year growth runway. While risks exist, competition, tech-driven disruption, and potential demand softness, the company’s dominant position and structural tailwinds support meaningful long-term value creation.

The company’s revenue rose by 20.77 percent from Rs. 1,736 crores in September 2024 to Rs. 2,096 crores in September 2025. Meanwhile, Net Profit from Rs. 86 crores rose to Rs. 103 crores during the same period.

Lenskart Solutions Ltd launched its Initial Public Offering (IPO) to support funding for growth and expansion. The issue comprises a fresh issue of 5.35 crore shares aggregating to Rs. 2,150.00 crore and an offer for sale of 12.76 crore shares aggregating to Rs. 5,128.02 crore, with a face value of Rs. 2 per share.

Lenskart Solutions Ltd., established in 2008, is a technology-focused eyewear company that designs, manufactures, brands, and retails prescription eyeglasses, sunglasses, contact lenses, and accessories. India serves as its primary market, and as per the Redseer Report, the company recorded the highest volume of prescription eyeglasses sold in India during FY 2025.

As of March 31, 2025, Lenskart operated a total of 2,723 stores globally—2,067 in India and 656 overseas. Of these, 1,757 are company-owned and 310 are franchised within India. The company also provides remote eye testing services through 136 optometrists across 168 stores in India and select international locations such as Japan and Thailand, enhancing accessibility and convenience for customers.

Its manufacturing and assembly operations are primarily based in Bhiwadi and Gurugram, supported by regional facilities in Singapore and the UAE. This integrated infrastructure enables next-day delivery in 40 Indian cities and 3-day delivery in 69 cities for single-vision prescription eyewear.

Written by Sridhar J 

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Will Lenskart share price cross ₹500 anytime soon? appeared first on Trade Brains.