Nomura sees 10,000-store runway for Lenskart as global expansion builds
Nomura initiated coverage on Lenskart with a Buy rating and Rs 888 target, citing India store-expansion potential, omnichannel scale and international growth through Owndays-led markets. The brokerage estimates Lenskart has tapped only about 5% of its potential store footprint.
What happened
Nomura initiated Lenskart with a Buy rating, citing substantial Indian store-expansion headroom, centralized manufacturing and omnichannel capabilities. It sees
Key facts
- Nomura target price: Rs 888
- Nearly 40% implied upside
- Over 10,000-store headroom
- More than 6,000 Indian pincodes
- Only 5% of store headroom accessed
- INR1.7 trillion addressable opportunity
- Two-thirds of India’s population may ignore vision-correction needs
Why this matters
Owndays-led international expansion strengthens Lenskart’s case for market-entry partnerships and selective acquisitions that accelerate regional scale in eyewear.
What to watch
- Quarterly net store additions versus management guidance and evidence of sustained opening cadence.
- Same-store sales growth, store maturity curves and payback periods for new locations.
- EBITDA margin movement as expansion-related rent, staffing, logistics and marketing costs scale.
- Owndays revenue growth, international store additions and profitability contribution by geography.
- Online-to-offline conversion, repeat purchase rates and share of higher-margin lenses or private-label products.
- Competitive pricing and expansion actions from Titan Eye+, Specsmakers, local optical chains and online eyewear platforms.
- Accelerate store openings in underpenetrated Indian tier-2 and tier-3 clusters while using nearby hubs for faster omnichannel fulfillment.
- Increase capital allocation toward Owndays-led expansion in East and Southeast Asian markets, likely emphasizing localized assortments and digital acquisition.
- Highlight store-level economics, same-store sales growth, repeat-customer behavior and omnichannel conversion in upcoming investor communications.
- Expand private-label, lens, subscription and eye-testing offerings to lift average order value and gross-margin mix.
- Use the favorable analyst framing to support future fundraising, strategic partnerships or acquisition opportunities in adjacent optical markets.