Motilal Oswal lifts Lenskart target to Rs 800, keeps Buy rating
Motilal Oswal has raised its Lenskart target price to Rs 800 from Rs 705 while reiterating Buy, citing automated manufacturing, backward integration, omnichannel scale and margin expansion. The revised target implies about 16% upside from Rs 692.
What happened
Motilal Oswal reiterated a Buy on Indian eyewear retailer Lenskart and raised its target price to Rs 800 from Rs 705, citing automated manufacturing, backward
Key facts
- Buy rating reiterated
- Target price raised to Rs 800 from Rs 705
- Current market price: Rs 692
- Implied upside: about 16%
- Shares rallied nearly 70% since November 2025 listing
- FY28 consensus PAT estimates increased roughly 30%
Why this matters
The valuation upgrade highlights strategic value in owning manufacturing and supply-chain capabilities, making vertically integrated omnichannel eyewear platforms more compelling partnership or acquisition targets.
What to watch
- Quarterly gross-margin and EBITDA-margin progression versus management guidance and consensus.
- Comparable-store sales growth, new-store additions, store-level breakeven periods and online-to-store conversion.
- Evidence that manufacturing automation lowers fulfillment time, remake rates and inventory days.
- Premium-product mix, average order value and lens attachment rates.
- Marketing expense as a percentage of revenue and customer acquisition cost trends.
- Competitor discounting, rapid store expansion or marketplace-led price pressure.
- Further FY27-FY28 earnings revisions and whether the stock valuation already discounts the upgraded profit outlook.
- Accelerate automated lens and frame manufacturing capacity to reduce unit costs and improve delivery speed.
- Prioritize store rollout in underpenetrated tier-2 and tier-3 markets while tightening payback thresholds for mature-city expansion.
- Use omnichannel data to raise eye-test conversion, premium lens attachment and repeat replacement purchases.
- Expand higher-margin categories such as progressive lenses, branded frames, contact lenses and subscriptions/vision-care plans.
- Defend market share through selective promotional pricing while avoiding broad discounting that could dilute gross-margin gains.