Lenskart Solutions share price rallied over 3% on Friday after domestic brokerage firm Motilal Oswal initiated coverage on the stock with a bullish view. Lenskart shares gained as much as 3.18% to ₹497.05 apiece on the BSE.
Motilal Oswal Financial Services (MOFSL) has initiated its coverage on Lenskart shares with a ‘Buy’ rating and a target price of ₹600 per share, implying an upside potential of nearly 25% from Thursday’s closing price.
Lenskart Solutions is India’s largest vertically integrated, technology-led omnichannel eyewear platform, operating in a structurally underpenetrated category. According to MOFSL, the company’s central manufacturing-led architecture, superior store economics, technology-driven expansion and house-of-brands strategy together create durable competitive moats in the eyewear segment.
The brokerage expects Lenskart to deliver a CAGR of 25% in pro forma consolidated revenue and 53% in pre-Ind AS EBITDA over FY25–FY28, largely driven by strong volume expansion, product margin improvement and 625 basis points of operating leverage-led margin expansion.
Lenskart’s valuations are highly sensitive to growth and margin expansion in its India business, said MOFSL. At the current market price, Lenskart shares appear to be factoring in approximately 23% India revenue CAGR (versus MOFSL’s base-case estimate of 27%) and a pre-Ind AS EBITDA margin of around 15.8% (about 100 basis points lower than its base-case assumption).
The brokerage highlighted that stronger-than-expected revenue growth and sharper margin expansion could drive further upside to its target price. It has outlined a bull-case valuation of ₹735 and a bear-case scenario of ₹395, depending on execution outcomes.
In the near term, free cash flow (FCF) generation is expected to remain constrained due to upfront capex on the upcoming Hyderabad manufacturing facility, aimed at future-proofing operations. However, MOFSL anticipates a significant improvement in FCF beyond FY28, potentially reaching 65–70% of pre-Ind AS EBITDA.
On valuations, Lenskart currently trades at around 42x FY28E EV/pre-Ind AS EBITDA, representing an 18% premium to other large retailers in India. However, MOFSL believes the premium is justified given the company’s superior growth profile, limited organised competition in the eyewear category and long growth runway.
The brokerage also pointed out that Lenskart trades at approximately 0.8x FY28E EV/EBITDA relative to its FY25–FY28E EBITDA CAGR, compared with 1.1–3.0x for leading fashion and grocery retailers and around 1.1x for Nykaa.
While repeat purchases in eyewear are less frequent, the relatively low organised competition compared to apparel, grocery and beauty segments could enable sustained growth, margin expansion and superior free cash flow generation over time, MOFSL said.
Lenskart Share Price Performance
Lenskart share price gained 8% in one month, and has rallied 15% in three months. The stock had made a muted debut in the Indian stock market on 10 November 2025. Lenskart shares were listed at ₹390.00 apiece on the BSE, a discount of 2.99%, to the issue price of ₹402 per share.
Lenskart shares touched a high of ₹533.30 apiece on 13 February. The stock is up over 27% from its listing price, and 24% higher than its issue price.
At 11:20 AM, Lenskart share price was trading 1.59% higher at ₹489.35 apiece on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
