ICICI Securities has issued a 'Buy' rating on Lenskart Solutions with a Rs 750 target, citing strong growth projections. Meanwhile, the stock is seeing action as SoftBank Vision Fund II begins selling a 2.6% stake at a floor price of Rs 635 per share. The company recently reported a threefold jump in Q1 FY27 profit to Rs 221.84 crore.
ICICI Securities has started coverage on Lenskart Solutions with a 'Buy' recommendation, setting a target price of Rs 750 for the stock. This brokerage report comes at a time when the eyewear retailer is in the market spotlight due to a significant stake sale by one of its major investors.
Brokerage Outlook and Growth Targets
The report from ICICI Securities suggests a positive outlook for the company, driven by its recent operational performance and future expansion plans. Analysts at the brokerage forecast that Lenskart’s India business could see a revenue compound annual growth rate (CAGR) of 23% between fiscal years 2026 and 2031. The thesis is based on the expectation that the company will triple its store count and improve same-store sales growth by 18% during the same period. Furthermore, the brokerage anticipates that as the company grows, it will become more efficient, which could boost the EBITDA (operating profit) CAGR to approximately 37%.
SoftBank Stake Sale and Market Activity
While the brokerage report highlights the long-term growth potential, investors are also reacting to immediate selling pressure. On August 24, 2026, reports emerged that SoftBank Vision Fund II is selling a 2.6% stake in Lenskart through a block deal. The floor price for this transaction was set at Rs 635 per share. Such large sales by early investors can often lead to short-term volatility in the stock price as the market absorbs the new supply of shares.
Financial Performance and Valuation Risks
Lenskart’s financial results show a strong trend, with the company reporting a consolidated net profit of Rs 221.84 crore for the first quarter of fiscal year 2027. This figure represents a more than three-fold increase compared to the same quarter in the previous year, signaling that the company's business model is scaling effectively. However, investors often watch the valuation closely, as Lenskart trades at a high price-to-earnings (P/E) ratio of over 200. This premium valuation suggests that the market has already priced in significant future growth, leaving little room for error if earnings do not meet expectations.
Additionally, Lenskart follows a business model that requires significant capital spending to open new stores and build supply chain infrastructure. While this helps in expanding market share, it also means that the company needs to manage its cash flow carefully to maintain high returns on capital. Going forward, market participants will monitor whether the company can sustain its growth in the face of intense competition in the eyewear sector, and how the stock reacts to the ongoing block deal.