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Motilal Oswal Report
Domestic brokerage firm Motilal Oswal has reiterated its Buy call on Lenskart Ltd., raising its target price to Rs 650, driven by strong growth visibility, margin expansion and structural advantages across its omnichannel business model.
The brokerage highlighted that Lenskart remains a well-positioned consumer-tech play with scalable growth drivers, supported by its integrated business model and expanding global footprint.
Valuation and View
Lenskart has built strong moats in a difficult-to-scale category through -
- a centralized, highly automated manufacturing facility and logistics network;
- strong backward integration, which provides significant cost advantage;
- large omnichannel presence;
- leveraging technology to ease constraints in scaling up; and
- house-of-brands architecture spanning mass to premium eyewear, to achieve its goal of making quality eyewear accessible and affordable.
Motilal Oswal has raise its FY27E/FY28E revenue by 5%/6%, pre-IND AS Ebitda by ~15%/10% and PAT by ~12%/7%, driven by upgrades in India and International growth and margin assumptions.
The brokerage models a CAGR of 25%/42%/44% in revenue/pre-IND AS Ebitda/PAT over FY26-28E, driven by ~26%/23% revenue growth and ~275bp/350bp margin expansion in India/International.
The brokerage reiterates its Buy rating on Lenskart with a revised target price of Rs 650, premised on unchanged 55x FY28E pre-IND AS Ebitda.
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