Jefferies has begun coverage of newly listed eyewear maker Lenskart Solutions Ltd., assigning a “buy” rating on November 28. The brokerage set a price target of ₹500, signalling a potential 23% upside from Thursday’s close.
According to Jefferies, Lenskart holds only a 5% share of India’s eyewear market yet remains the country’s largest tech-enabled retailer in the segment, giving it considerable scope for expansion. Its integrated omni-channel model enables lower costs, faster delivery and a smoother customer journey. While India accounts for more than 85% of EBITDA, Jefferies noted that global expansion provides meaningful strategic opportunities.
India’s eyewear industry, valued at $9 billion in FY25, is still underpenetrated and growing at a 13% CAGR, driven primarily by rising demand for prescription glasses. Jefferies expects Lenskart’s revenue to increase at a 24% CAGR between FY25 and FY28, with adjusted EBITDA expanding at over 50% CAGR, supported by margin gains and operating leverage. EPS, it added, may rise at a 44% CAGR in the same period.
At the ₹500 target, Lenskart is valued at 50x FY28 estimated pre-Ind AS EBITDA, a premium the brokerage says reflects its market leadership. Jefferies flagged competition, tech disruptions and slower growth as key risks, outlining bull and bear targets of ₹560 and ₹320, respectively. Lenskart shares closed at ₹407.7, staying above its IPO price of ₹402.
