Lenskart valuations leave ‘little upside’ for shares, HSBC says with target close to post-listing highs

Shares of Lenskart Solutions Ltd. recovered from early losses to trade with gains on Friday, March 27.Brokerage firm HSBC initiated coverage on the newly listed company with a “hold” rating and a price target of ₹513 per share. The price target is close to the stock’s post-listing high of ₹543.

HSBC’s price target implies an upside potential of 3.6% from Wednesday’s closing levels.
Lenskart is backward integrated and the D2C business creates one of the highest-moats in consumer, HSBC said. The total addressable market (TAM) expansion and market share gains offer sustainable growth, it added.

HSBC said Lenskart is seeing build-in margin improvement across both India and international markets.The brokerage expects Lenskart’s revenue and Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) grow at a Compounded Annual Growth Rate (CAGR) of 23% and 49% respectively over financial year 2025-2028.

HSBC said that the valuation that Lenskart commands compared to other retailers and platform companies, limits the upside that the stock price can have.

Lenskart shares listed on the stock exchanges at ₹402 per share in October last year.

16 analysts have coverage on Lenskart, of which 12 have a “buy” rating, three say “hold” and one has a “sell” rating.

Shares of Lenskart are trading 0.8% higher on Friday at ₹499.4. The stock is down 7% in the last one month.

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