With a price target of Rs 500, the international brokerage implies a 23% upside from the previous close. The brokerage argues that Lenskart is leading a fundamental shift in India’s eyewear market and still remains significantly under-penetrated despite its scale.
Jefferies positions Lenskart as India’s largest tech-driven organised eyewear retailer, yet with just about 5% share of a nearly Rs 79,000 crore domestic market. The firm says this low base, combined with structural tailwinds—rising refractive issues, higher screen time, increased lifestyle-led consumption and a shift from unorganised to organised retail—creates a long growth runway. India accounts for more than 85% of Lenskart’s EBITDA, forming the bedrock of the business, while its presence across 10 countries adds strategic optionality.
The brokerage highlights Lenskart’s vertically integrated, omni-channel model as the core competitive moat. Through centralised, automated manufacturing in India, Singapore and Dubai, the company is able to keep costs low, maintain consistent quality, and offer fast fulfillment, including next-day delivery in 40 cities. This supply-chain control, Jefferies notes, gives Lenskart a 35–40% materials cost advantage over traditional opticians. It has reinvested these efficiencies into affordability, including a “Buy 1 Get 1 Free” proposition for members.
Store economics are a key pillar of Jefferies’ bullish view. With more than 2,100 stores in India—largely under the company-owned format—Lenskart has one of the highest revenue per sq ft metrics among retailers. Store-level EBITDA margins exceed 30%, and over 80% of stores opened in the last two years achieved payback within 10 months. As operating leverage plays out, the brokerage expects India EBITDA margins to expand from 11% in FY25 to 15% by FY28.
Jefferies forecasts a 24% revenue CAGR and over 50% CAGR in adjusted EBITDA between FY25 and FY28, supported by steady network expansion, higher in-house production and a rising customer base. Annual transacting users in India have grown at a 25% pace, reaching 9.9 million in FY25, while total units sold have expanded even faster.International operations—spanning Japan, Southeast Asia, the Middle East and Australia—remain an optionality. While global eyewear markets may grow slower at 3–7%, Jefferies sees room for share gains, synergy benefits and margin improvement, particularly after the Owndays acquisition and the recent entry into Europe via Meller.The brokerage, however, flags risks including rising competition, slower-than-expected growth, and the potential disruption from smart-wear technology. Even so, it argues that Lenskart’s premium valuation is justified by its leadership, scale advantages and the long-term opportunity in a still-underpenetrated category.
Lenskart shares currently trade nearly flat, just 1.6% higher, from its IPO price of Rs 402 per share.
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