Saturday, October 10, 2026

Lenskart is a ‘structural compounder’ according to Elara, who sees stock beyond ₹600

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Shares of Lenskart Solutions Ltd. traded higher on Wednesday, May 27, after brokerage firm Elara Capital initiated coverage on the stock with a ‘Buy’ rating, describing the company as a structural compounder and a category-defining player in India’s eyewear market.The brokerage assigned a target price of ₹615 per share, implying an upside potential of nearly 22% from current levels.

In its initiation note, Elara Capital said Lenskart has built one of the country’s most differentiated retail models through a full-stack eyewear ecosystem that combines manufacturing, retail, technology, and consumer engagement.
The brokerage compared Lenskart’s growth trajectory with Titan Company’s jewellery business, stating that the company could emerge as a category leader in eyewear much like Tanishq did in the jewellery segment.Elara referred to Lenskart’s strong store economics, aggressive capacity expansion, and technology-led consumer experience as key strengths that have helped create a strong competitive moat.

According to the brokerage, the company’s integrated model makes it difficult for competitors to replicate its scale and efficiency, positioning the business as a long-term structural growth story.The brokerage also pointed to Lenskart’s ability to consistently drive strong store footfalls, reflected in same-store sales growth of nearly 20%. It said that revenue contribution from tier-I and tier-II cities remains largely similar, indicating broad-based demand across geographies.

Elara further said acquisitions of Owndays in 2022 and Meller in 2025 have strengthened Lenskart’s premium international presence and improved its average selling price mix.

International markets contributed 42% of revenue in FY26, with the company now operating across more than 10 countries and over 600 stores globally.

Among the key differentiators highlighted by the brokerage were best-in-class revenue productivity of ₹25,000-30,000 per square foot, high gross margins driven by its private-label strategy, and an industry-leading payback period of 10-12 months for stores.

Elara Capital values the stock at 50x FY28 estimated EV/EBITDA and expects Lenskart to deliver a 25% revenue CAGR and 38% EBITDA CAGR between FY26 and FY29.

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