Motilal Oswal keeps Buy on Lenskart, sees 16% upside to Rs 800
The brokerage cited faster India store additions and operating leverage, projecting Lenskart revenue to grow at a 27% CAGR between FY26 and FY29. It expects India pre-Ind AS EBITDA margin to reach 19.4% by FY29.
What happened
Motilal Oswal retained a Buy on Lenskart and lifted its target to Rs 800, citing faster India store additions and operating leverage. It forecasts 27% revenue
Key facts
- Lenskart target price: Rs 800
- Lenskart implied upside: 16%
- Lenskart revenue CAGR FY26-FY29: 27%
- Lenskart pre-Ind AS EBITDA CAGR FY26-FY29: 46%
- Lenskart adjusted PAT CAGR FY26-FY29: 59%
- Lenskart India pre-Ind AS EBITDA margin FY29: 19.4%
- Adani Airport Holdings capital raise: Rs 9,800 crore
- Investor stake in airport business: 5.54%
- Airport mixed-use development: 22 million sq ft
- Adani Enterprises target price: Rs 3,880
- Adani Enterprises implied upside: 25%
Why this matters
Lenskart’s combination of rapid physical-network expansion and margin scalability strengthens its strategic value as an omnichannel eyewear platform and potential consolidation partner.
What to watch
- Quarterly India net store additions and mix of company-operated versus franchise formats.
- Same-store sales growth and sales-per-store trend as the store base expands.
- New-store break-even period, cluster-level cannibalization and occupancy-cost ratio.
- Gross-margin movement from private-label mix, premiumization and discounting.
- India pre-Ind AS EBITDA-margin progression toward 19.4% by FY29.
- Online customer-acquisition costs, repeat order rates and omnichannel conversion.
- Competitive pricing actions by organized optical chains, marketplaces and local incumbents.
- Any revision to FY26-FY29 revenue CAGR or adjusted-PAT CAGR guidance/estimates.
- Prioritize clusters of India store openings where fulfillment density, local marketing and optometrist availability can improve new-store payback.
- Increase focus on mature-store productivity through lens upselling, premium frames, memberships and higher repeat-purchase conversion.
- Use improving operating leverage to selectively fund technology, supply-chain automation and faster delivery rather than broadly escalating discounts.
- Investors are likely to scrutinize quarterly net store additions, same-store growth, new-store ramp curves and pre-Ind AS margin progression versus the FY29 framework.