Antique initiates Lenskart with 'Hold', cites favourable business landscape

Antique assigned a 'hold' rating on Lenskart with a target price of ₹455 and noted that current valuations largely factor in the company's growth outlook

Antique Stock Broking initiated coverage on Lenskart Solutions Ltd., citing strong operational capabilities and a favourable business landscape. The brokerage assigned a 'hold' rating with a target price of ₹455 and noted that current valuations largely factor in the company's growth outlook.

 

Antique highlighted Lenskart's strong execution, with revenue growing at a 33 per cent compound annual growth rate (CAGR) between FY23 and FY25 to ₹6,666 crore. Ebitda margin (pre-Ind AS) improved from negative 1 per cent in FY23 to 5.7 per cent in FY25, and further to 9.6 per cent in the first half of FY26. Product margins remain healthy at around 68-69 per cent.

 

With organised penetration at just 24 per cent in India, Antique sees headroom for over 25 per cent medium-term revenue growth and continued margin expansion. The brokerage assumes a 25 per cent revenue compound annual growth rate over FY25-28, with Ebitda margin (pre-Ind AS) expanding to 13.1 per cent by FY28. 

 

While fundamentals remain strong and the total addressable market is expected to expand meaningfully over the next decade, Antique believes valuations already reflect much of the growth potential.

 

Founded in 2008, Lenskart is a technology-led, vertically integrated eyewear company, with prescription eyeglasses contributing over 80 per cent of revenue, alongside sunglasses and contact lenses. Lenskart's supply chain is different from a traditional distributed supply chain, Antique said, adding that it manages its entire prescription eyeglasses supply chain through a fully centralised model.

 

India is its largest market, supported by a fast-growing international presence across Southeast Asia, Japan and the Middle East. The company operates an integrated omni-channel model spanning in-house design, owned manufacturing, and a wide physical and digital retail network.

 

Lenskart posted a nearly 20 per cent year-on-year jump in net profit for the September quarter, reaching ₹103.5 crore, up from ₹86.3 crore a year earlier. Revenue from operations climbed 21 per cent from a year earlier to ₹2,096 crore, compared with ₹1,735.7 crore in the same period last year. Revenue in the prior quarter totalled ₹1,894.5 crore.  CATCH STOCK MARKET LIVE UPDATES TODAY

Lenskart share price history

The company's stock fell as much as 1.1 per cent during the day to ₹446.05 per share. The stock pared losses to trade 1 per cent lower at ₹446 apiece, compared to a 0.57 per cent decline in Nifty 50 as of 9:48 AM. 

 

Shares of the company were down for the second straight session and currently trade at 3.3 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 1 per cent this year, compared to a 2.5 per cent decline in the benchmark Nifty 50. Lenskart has a total market capitalisation of ₹77,583.39 crore.   ========== 

(Disclaimer: The views and investment tips expressed by the brokerage in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.)