Jefferies India has begun coverage of Lenskart Solutions Ltd, assigning a buy rating along with a ₹500 price target, signalling a 23% upside from the previous close. Following the report, the newly listed stock rose nearly 5% to ₹428.90 on November 28. In its optimistic case, Jefferies believes the share could reach ₹560, implying a 38% gain.
The brokerage points out that Lenskart—India’s biggest tech-driven eyewear retailer—holds only 5% of the country’s nearly $9-billion eyewear market, leaving substantial expansion potential. Its vertically integrated, omni-channel structure delivers efficient costs, quick fulfilment and a strong customer experience, advantages in a heavily unorganised industry. India is expected to remain Lenskart’s core earnings driver, contributing over 85% of EBITDA, while the international business provides additional long-term support.
Jefferies anticipates 24% annual revenue growth between FY25 and FY28, led by higher order frequency and volumes. Adjusted EBITDA is projected to rise over 50% CAGR, with about 600 bps margin improvement, while EPS may climb 44% CAGR. The firm highlighted Lenskart’s net-cash balance sheet, strengthening return ratios and strong cash generation.
Risks include increasing competition, technology-led disruptions and slower demand. In a bearish scenario, Jefferies values the stock at ₹320, assuming slower growth and lower margins.