Lenskart Stock in Focus: JM Financial sees 13% upside, initiates ‘Buy’ call

JM Financial Institutional Securities has initiated coverage on Lenskart Solutions with a ‘Buy’ rating and a target price of Rs 535 per share, citing strong growth visibility backed by technology-led execution, vertical integration and improving profitability. The target price implies a 13 per cent upside from current levels.

At around 12:12 pm, Lenskart’s shares were trading 1.95 per cent higher at Rs 473.05. In comparison, the BSE Sensex was up 0.34 per cent at 84,354.72. During intra-day trade, the stock rose as much as 2.3 per cent, touching a high of Rs 475.

Omni-channel scale in India and overseas

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JM Financial noted that Lenskart has built a strong omni-channel presence across 431 cities in India, operating 2,270 stores. Internationally, the company has expanded its footprint to Europe, Singapore, Japan, Southeast Asia and the Middle East, with 679 stores overseas as of September 30, 2025.

Despite holding a relatively modest 5 per cent market share, the brokerage said Lenskart’s operating model has enabled it to emerge as a category leader in the eyewear segment.

Technology stack and centralised model as key differentiators

The brokerage highlighted Lenskart’s decade-old technology stack as a key competitive advantage, with technology deeply embedded across operations to enhance customer experience and operational efficiency.

JM Financial added that centralised eye testing helps lower diagnosis costs, generates incremental demand and supports customer acquisition, conversion and repeat rates, which are estimated at around 98 per cent. Tools such as Tango, which supports tech-assisted selling and throughput, and GeoIQ, which enables data-led store expansion, were cited as critical enablers of scale. These tools, the brokerage said, support a consistent store payback period of around 10 months without diluting returns.

Vertical integration improves cost structure

According to JM Financial, Lenskart’s centralised manufacturing and fulfilment model addresses inefficiencies in the eyewear value chain, which is otherwise fragmented and intermediary-heavy. The brokerage estimates that Lenskart’s vertical integration, scale and automation deliver 35–40 per cent lower costs compared with the industry.

This cost advantage allows the company to pass on savings to customers while maintaining strong unit economics. The brokerage noted that an average Lenskart store spans about 800 square feet and carries relatively low inventory due to centralised manufacturing.

Growth outlook: Store additions and earnings compounding

Looking ahead, JM Financial expects Lenskart to add around 550 stores and deliver revenue, Ebitda and earnings per share compound annual growth rates of 23 per cent, 50 per cent and 55 per cent, respectively, over FY25–FY28E.

Over the longer term, the brokerage believes Lenskart could add 9,000–9,500 stores over the next decade, supported by disciplined site selection and store-opening criteria.

Large market opportunity and formalisation tailwinds

JM Financial pegged India’s eyewear market at Rs 78,800 crore in FY25 and expects it to grow at a 13 per cent CAGR over FY25–FY30E, driven by rising refractive errors, increasing penetration and improving diagnosis, access and affordability.

It added that the shift from the unorganised to the organised segment remains a structural tailwind, with the organised market share expected to rise to 31 per cent by FY30E from 24 per cent in FY25. Internationally, the brokerage highlighted addressable markets totalling Rs 1.5 trillion in FY25, roughly twice the size of India’s market, where Lenskart is replicating its India playbook.