Lenskart Solutions shares rebounded after making a weak debut on Monday, November 10. Lenskart’s share price was listed at ₹390 on the BSE, a discount of 3 per cent to the initial public offering (IPO) price of ₹402. On the NSE, Lenskart shares debuted at a discount of 1.74 per cent at ₹395.
However, the stock rebounded to reach the high of ₹409.90 on the BSE and to ₹413.75 on the NSE during the session amid positive market sentiment.
Lenskart IPO was subscribed 28.26 times. The company raised ₹7,278.02 crore from the public issue, which was a combination of fresh issue of 5.35 crore equity shares worth ₹2,150 crore, and an offer-for-sale (OFS) component of 12.76 crore shares amounting to ₹5,128.02 crore.
As the IPO was a solid success, all eyes were on the listing of the stock as its grey market premium had been falling over the last few days.
Now that the debut is done, investors are busy speculating whether to buy more of the stock or book profits. Mint spoke to experts to find out what investors should do. Here’s what they said:
Healthy growth outlook
Lenskart’s strong market presence is its key strength. Its vertically integrated model, in-house manufacturing, aggressive store expansion, and data-driven supply chain project a healthy growth outlook for the company.
Shivani Nyati, Head of Wealth at Swastika Investmart, noted that Lenskart’s premium brand perception, subscription-based revenue stream, and rising penetration in tier-II and tier-III markets have positioned it as a category leader in India’s fast-growing organised eyewear market.
Seema Srivastava, Senior Research Analyst at SMC Global Securities, too, underscored that Lenskart has an integrated business model and a dominant position in India’s organised eyewear market. The company’s vertical integration—from manufacturing frames and lenses to retailing through an omnichannel network—enables cost efficiency, quick delivery, and strong scalability.
“With a robust FY25 performance marked by ₹6,652 crore revenue and improved 14.6 per cent EBITDA margin, Lenskart appears well-placed to benefit from the expanding eyewear market in India and abroad. Its focus on innovation, smart eyewear, and technology-driven customer experience strengthens its long-term growth outlook,” Srivastava said.
But valuations….
Lenskart’s premium valuation is making investors sceptical about the stock. Many experts have expressed their discomfort with the stock’s valuation.
As Abhinav Tiwari, a research analyst at Bonanza, underscored: “The stock listed 3 per cent below the issue price, showing concerns about its high valuation, with a PE ratio of around 238 times already factoring in strong growth.”
Srivastava of SMC Global also added that the stock is richly valued, with much of its future growth already priced in.
“Risks include dependence on imported materials, potential supply chain disruptions, competition, and challenges in sustaining margins amid global expansion,” said Srivastava.
What should investors do?
According to Srivastava, for long-term investors, Lenskart offers an attractive growth story but a limited near-term margin of safety.
“Those with a high-risk appetite may consider holding or accumulating on corrections, betting on its execution strength and market leadership. Conservative investors may wait for valuation comfort or sustained profitability visibility before entering,” she said.
Nyati of Swastika Investmart advised investors who have allotted shares to consider holding them for the medium to long term, supported by earnings visibility and an expanding store footprint. A stop-loss of around ₹350 was recommended, and short-term traders were advised to exit the position and look for better opportunities elsewhere.
Tiwari said investors should be careful with Lenskart, even though its IPO saw strong demand.
“The company’s rapid expansion and heavy spending could hurt near-term profits. While Lenskart remains a leader in India’s organised eyewear market, and management expects long-term margin gains from operating leverage, the valuation looks expensive and leaves limited room for safety,” said Tiwari.
“Investors should be waiting for the Q2 results and a possible 15-20 per cent price correction. New investors should wait for better entry levels, as over the long run, the market tends to align a stock’s price with its true fundamental value,” Tiwari said.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
