Jefferies Backs Lenskart With Bullish Call Despite Limited Market Share — Here's Why

Jefferies has initiated coverage on Lenskart, India’s largest tech-driven eyewear retailer, highlighting its strong long-term potential despite currently holding just 5% market share. The brokerage initiated coverage on the stock with a 'buy' call, at a price target of Rs 500 apiece.

The firm believes Lenskart’s vertically integrated, omni-channel model spanning design, manufacturing, and retail gives it significant cost advantages, faster delivery capabilities, and a superior customer experience.

With India contributing over 85% of Ebitda, the domestic business forms the company’s financial backbone, while the international segment provides additional optionality, as per the note.

Lenskart’s deep vertical integration and strong back-end infrastructure set it apart from the fragmented traditional eyewear market. The company is now among Asia’s top two players, supported by its omnichannel presence that enables rapid delivery and consistent service quality. Jefferies notes that India remains the primary profit engine, but global expansion adds strategic leverage.

The broader Indian eyewear market, estimated at $9 billion in FY25, is still underpenetrated and growing at 13% CAGR. Prescription eyeglasses account for more than 70% of the category, driven by rising refractive errors, increased screen exposure, pollution, and an ageing population. Organised retail penetration stands at just 24% — a backdrop that positions Lenskart, with its 2,100+ stores, to gain substantial share from its current 5% stake in the market.

Jefferies sees Lenskart’s end-to-end control as a key structural advantage. With manufacturing hubs in India, Singapore, and Dubai, the company achieves scalability and cost efficiency. Its experience-center store format also keeps capex low and accelerates payback periods, with 80% of stores breaking even within one year.

The brokerage notes that the premium valuation reflects Lenskart’s leadership and market opportunity. Key risks include intensifying competition, potential tech-driven disruption (e.g., smart eyewear), or slower-than-expected market growth.