Nykaa, Lenskart remain long-term bets despite rich internet-stock valuations: Mayuresh Joshi
William O’Neil India’s Mayuresh Joshi retains Nykaa and Lenskart as long-term picks, citing earnings potential, large addressable markets, digital scale and operating leverage. He sees targets of about 350 for Nykaa and 710 for Lenskart.
What happened
William O’Neil India’s Mayuresh Joshi says richly valued internet stocks still offer long-term potential. He retains Nykaa and Lenskart, citing their earnings,
Key facts
- Lenskart target: 710
- Nykaa target: around 350
- Sector outlook: next decade
Why this matters
The positive view on Nykaa and Lenskart highlights the strategic value of scalable consumer platforms with strong category leadership, expanding markets and improving profitability leverage.
What to watch
- Nykaa revenue growth, GMV growth, EBITDA margin and fashion-segment losses.
- Lenskart revenue growth, adjusted EBITDA, store productivity, same-store sales and international profitability.
- Sector valuation changes following interest-rate moves, IPO activity or results from other listed consumer-internet companies.
- Evidence of rising discounting, ad-spend intensity, delivery costs or inventory write-downs.
- Management guidance revisions on profitability timelines and capital-expenditure needs.
- Prioritize quarterly evidence of EBITDA-margin expansion, repeat purchase behavior and lower customer-acquisition costs over top-line growth alone.
- Monitor Nykaa’s beauty versus fashion mix, inventory intensity and private-label contribution for signs of improving monetization.
- Track Lenskart’s store additions, international expansion, omnichannel sales mix and unit economics to test whether scale is translating into earnings.
- Expect investors to rotate selectively toward internet companies with visible free-cash-flow conversion rather than treating the sector as a single valuation trade.