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What is the story about?
Shares of newly listed Lenskart Solutions Ltd. will be in focus on Tuesday, February 10, after brokerage firm Citi initiated coverage on the stock.
Citi began coverage with a 'Neutral' rating and a price target of ₹500, implying a potential upside of nearly 8% from current levels.
The brokerage said Lenskart is driving a paradigm shift in India's eyewear industry by improving accessibility and affordability, while also benefiting from a shift towards eyewear as a lifestyle purchase with higher replacement frequency.
Citi added that the company's integrated manufacturing capabilities and technology-driven supply chain, combined with its D2C-led model, create a strong competitive moat.
However, while Lenskart offers robust growth visibility and improving unit economics, Citi believes current valuations already factor in much of its medium-term growth and margin potential, limiting near-term rerating catalysts.
Key risks, as per the brokerage, include dependence on global supply chains, potential acquisitions, deterioration in store-level economics, and rising competitive pressures.
At present, seven analysts track the stock, with five recommending a 'Buy', while one analyst each has a 'Hold' and 'Sell' rating.
Shares of Lenskart Solutions are up 16% from their issue price of ₹402, though the stock has corrected 6% from its post-listing high of ₹495. The stock ended Monday’s session 1.68% higher at ₹465.
Citi began coverage with a 'Neutral' rating and a price target of ₹500, implying a potential upside of nearly 8% from current levels.
The brokerage said Lenskart is driving a paradigm shift in India's eyewear industry by improving accessibility and affordability, while also benefiting from a shift towards eyewear as a lifestyle purchase with higher replacement frequency.
Citi added that the company's integrated manufacturing capabilities and technology-driven supply chain, combined with its D2C-led model, create a strong competitive moat.
However, while Lenskart offers robust growth visibility and improving unit economics, Citi believes current valuations already factor in much of its medium-term growth and margin potential, limiting near-term rerating catalysts.
Key risks, as per the brokerage, include dependence on global supply chains, potential acquisitions, deterioration in store-level economics, and rising competitive pressures.
At present, seven analysts track the stock, with five recommending a 'Buy', while one analyst each has a 'Hold' and 'Sell' rating.
Shares of Lenskart Solutions are up 16% from their issue price of ₹402, though the stock has corrected 6% from its post-listing high of ₹495. The stock ended Monday’s session 1.68% higher at ₹465.
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