Avendus Spark has initiated coverage on Lenskart with an "Add" rating and a price target of ₹490 per share, which implies an upside potential of only 10% from current levels.
Shares of Lenskart are up 12% from their issue price of ₹402 per share, but have corrected close to 10% from their post-listing high of ₹495 as of Wednesday's closing.
Lenskart has led the disruption in eyewear retail through the M2C (Manufacturer-To-Consumer) model, which solves key category and core business challenges, Avendus Spark wrote in its note.
The company is leveraging its proprietary technology to enhance its operational agility, network expansion, and customer conversion rate, the brokerage said, adding that it is replicating its India playbook to scale globally and expand into international markets such as Japan, Singapore, Thailand and the UAE, according to the note.
Avendus expects Lenskart's consolidated revenue to grow at a Compounded Annual Growth Rate (CAGR) of 21% over financial year 2025-2028, along with an EBITDA margin expansion of 550 basis points during the same timeframe.
In its first quarterly performance post listing, Lenskart reported a revenue growth of 21%, while margins expanded by over 300 basis points to 19.8% from 16.5% during the same period last year.
Five analysts now have coverage on Lenskart, of which three have a "buy" rating and one analyst each has a "hold" and "sell" recommendation.
Shares of Lenskart Solutions ended 3.6% lower on Wednesday at ₹448.95.
