Lenskart Solutions shares rise 2% in trade; JM Financial initiates 'Buy'

JM Financial Institutional Securities has initiated coverage on Lenskart Solutions with ‘Buy’ for a target of ₹535 per share. The target price implies 13 per cent upside from current levels. The brokerage has cited strong growth visibility backed by technology-led execution, vertical integration, and improving profitability.

 

At 12:12 PM, Lenskart’s share price was trading 1.95 per cent higher at ₹473.05 per share. In comparison, BSE Sensex was up 0.34 per cent at 84,354.72. Intra-day, the stock gained 2.3 per cent, logging a day’s high at ₹475 per share.  FOLLOW STOCK MARKET UPDATES TODAY LIVE

Omni-channel scale in India and overseas

JM Financial noted that Lenskart has an omni-channel presence across 431 cities in India, with 2,270 stores, and a global footprint across Europe, Singapore, Japan, Southeast Asia and the Middle East with 679 stores (as of September 30, 2025). Despite a modest 5 per cent market share, the brokerage said the company’s operating model has helped it emerge as a category leader.

 

Tech stack and centralised model seen as key differentiators

The brokerage highlighted Lenskart’s decade-old technology stack as a key edge, with technology embedded across operations to improve customer experience and efficiency. It added that centralised eye testing helps reduce diagnosis costs, creates incremental demand and supports customer acquisition, conversion and repeat rates (around 98 per cent, as per the note). On the operating side, JM Financial pointed to tools such as Tango for tech-assisted selling and throughput, and GeoIQ for data-led store expansion, which it said supports a consistent ~10-month store payback without diluting returns.

Vertical integration drives lower costs and unit economics

JM Financial said Lenskart’s centralised manufacturing and fulfilment help address an eyewear value chain that is otherwise fragmented, decentralised, and intermediary-heavy, leading to high mark-ups. According to the report, Lenskart’s vertical integration, scale, and automation translate into 35–40 per cent lower costs versus the industry, enabling the company to pass on benefits to customers while maintaining strong unit economics. It noted that an average store is around 800 sq ft, with low inventory requirements due to centralised manufacturing.  ALSO READ | Microcap stocks in demand; Sterlite Tech, ISGEC Heavy zoom up to 20%

Growth outlook: 550 stores, strong earnings compounding

JM Financial expects Lenskart to add 550 stores and clock revenue/Earnings before interest, tax, depreciation and amortisation (Ebitda)/earnings per share (EPS) compound annual growth rate (CAGR) of 23 per cent/50 per cent/55 per cent over FY25–FY28E. It also said its analysis suggests Lenskart could add 9,000–9,500 stores over a decade, supported by disciplined store-opening criteria.

Large market opportunity and formalisation tailwinds

The brokerage pegged India’s eyewear market at ₹78,800 crore in FY25, and expects it to grow at 13 per cent CAGR over FY25–FY30E, driven by rising refractive errors (53 per cent in FY25), increasing penetration (35 per cent), and improving diagnosis, access, and affordability. It added that the shift from unorganised to organised retail remains a structural tailwind, with the organised share expected to rise to 31 per cent by FY30E from 24 per cent in FY25. Internationally, it highlighted markets totalling ₹1.5 trillion in FY25—about 2x India’s—where the company is replicating its India playbook.

Valuation

JM Financial values Lenskart using a DCF methodology with 12 per cent WACC and 6 per cent terminal growth, implying 54x EV/Ebitda (Dec’27, pre-Ind AS 116). It noted the stock trades at 44x EV/EBITDA FY28E, at a ~14–21% premium to DMart and Titan, which it believes is justified given Lenskart’s growth visibility, faster earnings compounding, category leadership amid formalisation, and profitability relative to many new-age peers.

 

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