Lenskart Share Price In Focus After Avendus Spark Initiates Coverage — Check Target Price And More

Avendus Spark has initiated coverage on Lenskart with an ‘Add’ rating and a target price of Rs 490, citing its ability to disrupt Indian eyewear retail through a combination of manufacturing-led cost advantages and technology-driven scale.

In its initiation note, the brokerage said disruptions in Indian retail over the past decade have typically emerged either from a superior value proposition or from technology-enabled aggregation in fragmented markets. Lenskart, it said, has succeeded on both fronts by adopting a manufacturer-to-consumer (M2C) business model while leveraging proprietary technology and innovation.

Of the analysts tracked by Bloomberg that have coverage on this stock, three have a 'buy' rating, one has a 'hold' call, and only one has a 'sell' stance.

The note says that Lenskart's M2C approach addresses long-standing category challenges such as awareness, affordability, and accessibility, while also solving business constraints around assortment, quality, scalability, and supply chain agility.

The company’s vertically integrated manufacturing model eliminates intermediaries, enabling competitive pricing and consistent product quality.

The brokerage also highlighted the significant total addressable market opportunity. Refractive errors are projected by the World Health Organization to affect 470 crore people, or 55% of the global population, by 2030, with Asia expected to lead growth.

India’s eyewear market is estimated to grow at around 13% CAGR from Rs 78,800 crore in FY25 to Rs 1.48 lakh crore by FY30 — nearly three times the global growth rate. International markets such as Japan, Southeast Asia and the Middle East collectively represent an opportunity, driven by ageing populations, premiumisation and insurance-backed prescription demand.

Avendus Spark noted that Lenskart has built scale in a fragmented retail landscape through free in-store and remote eye testing, an omni-channel network of over 2,200 stores, and rapid fulfilment capabilities, including next-day delivery across 59 cities.

The company has also focused on aspiration-led demand through fashionable assortments and collaborations, supporting customer acquisition and repeat purchases.

On the financial front, the brokerage expects Lenskart to deliver a consolidated revenue CAGR of 21% over FY25–28, with India growing at 23% and international operations at 18%.

Using a sum-of-the-parts valuation, Avendus Spark arrived at an implied FY28 EV/EBITDA multiple of 33x (Ind AS), underpinning its target price and ‘Add’ rating.