Lenskart shares jumped nearly 7% to a record high of ₹627.35 after several brokerages raised their target prices following its Q1 FY27 results
Jefferies, Goldman Sachs, and Macquarie remain bullish on Lenskart’s growth and margin expansion, while Citi and HSBC flagged concerns over the stock’s valuation
Lenskart’s consolidated net profit surged 273% YoY to ₹228.4 Cr in Q1 FY27, while operating revenue rose 43% to ₹2,714.2 Cr
Shares of omnichannel eyewear major LensKart
jumped nearly 7% to an all-time high of ₹627.35 on the BSE today after several brokerages raised their target prices following the company’s Q1 FY27 results.
However, the stock pared most of its gains later and was trading 2.1% higher at ₹598.95 at 10:43 IST. Lenskart’s market capitalisation stood at around ₹1.04 Lakh Cr (about $10.9 Bn) at the time.
The rally came after brokerages highlighted Lenskart’s revenue growth, margin expansion, premiumisation, and improving international business. However, Citi and HSBC remained cautious about the stock’s valuation.
Jefferies raised its target price for Lenskart to ₹680 from ₹600 and retained its ‘Buy’ rating, saying the June quarter strengthened the company’s growth story.
The brokerage highlighted strong demand, premiumisation, and Lenskart’s ability to cater to customers across multiple price points.
Macquarie retained its ‘Outperform’ rating and raised its target price to ₹675 from ₹625, citing stronger-than-expected margins in the international business and a 4% upgrade to its FY27 earnings per share estimate.
Goldman Sachs raised its target price to ₹715 from ₹625 and retained its ‘Accumulate’ rating, citing continued revenue growth in India and margin expansion across both the India and international businesses.
Morgan Stanley retained its ‘Overweight’ rating and target price of ₹666. It cited a strong Q1 performance led by the international business, improving margins, and positive growth commentary, but flagged the stock’s high valuation.
Citi raised its target price to ₹650 from ₹600 but retained its ‘Neutral’ rating. While the brokerage acknowledged Lenskart’s strong growth and profitability, it said the current valuation already factors in much of the expected upside.
HSBC retained its ‘Hold’ rating and target price of ₹575, saying the stock’s premium valuation already factors in much of the expected growth despite Lenskart’s EBITDA exceeding its estimate by 8%, driven by the international business.
Lenskart’s consolidated net profit surged 273% to ₹228.4 Cr in Q1 FY27 from ₹61.2 Cr in the year-ago quarter. On a sequential basis, profit rose 12% from ₹203.6 Cr.
Operating revenue grew 43% YoY and 8% QoQ to ₹2,714.2 Cr, while total expenses rose 35% YoY to ₹2,483.5 Cr.
Lenskart continued to face higher costs due to the rupee’s depreciation against the Chinese yuan, as a significant share of its frames are sourced from China.
“Despite this, product margin has continued to be resilient in both India and international [markets], absorbing the currency impact through two structural offsets: growing premiumisation and, increasingly, how much more of our own manufacturing we now do in-house,” the company said.
Beyond approving its financial results, Lenskart’s board cleared several expansion and investment proposals. It approved an investment of ₹10.6 Cr in Singapore-based Baofeng Framekart Technology Ltd, a joint venture between Lenskart Solutions Pte Ltd and Geng Yongchao, to acquire an additional 19% stake and raise its holding in the eyewear-frame manufacturing company to 70%.
The company will also invest ₹20 Cr to expand its step-down subsidiary OWNDAYS into South Korea. In China, Lenskart will set up a step-down subsidiary, Wenzhou Framekart Trade Co Ltd, with an investment of ₹1.4 Cr for a 95% stake. The entity will focus on trading, importing, exporting, and procuring spectacle frames and allied optical products.
Source: Inc42 - Startups
