Antique Eyes Lenskart: 'Hold' Rating, ₹455 Target Issued as Valuations Peak

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AuthorIshaan Verma|Published at:
Antique Eyes Lenskart: 'Hold' Rating, ₹455 Target Issued as Valuations Peak
Overview

Antique Stock Broking initiated coverage on Lenskart Solutions Ltd. with a 'Hold' rating and a ₹455 target price. The brokerage cited strong operational capabilities and market growth but noted that current valuations largely reflect the company's expansion outlook. Lenskart's recent Q3 results showed a nearly 20% year-on-year net profit jump.

Antique Initiates Lenskart Coverage with 'Hold' Rating

Antique Stock Broking has officially begun tracking Lenskart Solutions Ltd., issuing a 'Hold' recommendation and setting a target price of ₹455. The firm pointed to Lenskart's strong operational execution and a favourable market environment as key strengths. However, it suggested that current market valuations appear to have already priced in much of the company's anticipated growth.

Growth Projections and Margin Expansion

The brokerage forecasts robust revenue expansion, projecting a 33 per cent compound annual growth rate (CAGR) for Lenskart between FY23 and FY25, reaching ₹6,666 crore. Ebitda margins, adjusted for Ind AS, are expected to climb from negative territory in FY23 to 5.7 per cent by FY25 and further to 9.6 per cent in the first half of FY26. This upward trend is supported by consistent product margins holding steady around 68-69 per cent.

Market Opportunity and Lenskart's Model

With organised penetration in the Indian eyewear market standing at a mere 24 per cent, Antique sees significant headroom for Lenskart. They anticipate over 25 per cent medium-term revenue growth and continued margin improvement. The firm projects a 25 per cent revenue CAGR from FY25 to FY28, with Ebitda margins expanding to 13.1 per cent by FY28. Lenskart operates as a technology-led, vertically integrated eyewear company, managing its entire prescription eyeglasses supply chain centrally. It spans design, manufacturing, and an omni-channel retail network across India, Southeast Asia, Japan, and the Middle East.

Recent Financials and Stock Performance

Lenskart recently reported a nearly 20 per cent year-on-year increase in net profit for the September quarter, reaching ₹103.5 crore. Revenue from operations grew 21 per cent year-on-year to ₹2,096 crore. Despite these positive results, the stock experienced a slight dip, falling as much as 1.1 per cent to ₹446.05 during the session, paring losses to trade 1 per cent lower. The shares have declined 1 per cent year-to-date, contrasting with a 2.5 per cent fall in the benchmark Nifty 50.

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