Shankar Sharma Jokes Lenskart Valuation a ‘Steal’ Vs. Paytm, Nykaa IPOs
Amid fierce chatter over Lenskart’s high valuation ahead of its IPO debut, veteran investor Shankar Sharma has weighed in with a sarcastic take, joking that the company’s valuation is a “steal.” Sharma’s statement comes against the backdrop of growing concerns over Lenskart’s valuation, pegged at around Rs 70,000 crore. Many have pointed out the company’s high price-to-sales multiple exceeding 10x and a high price-to-earnings ratio of 230x.
In a post on X, Sharma mockingly compared Lenskart’s pricing to the sky-high valuations of past tech IPOs, suggesting any criticism was just an “organised campaign.” “There is an organised campaign against Lenskart. At ~10x Sales, it’s a steal compared to P/ sales valuations of Paytm, Nykaa, Zomato, PB, Car Trade, etc, who IPOd at 25-50x their revenues ( with plenty of losses too),” Sharma wrote on X.
For more information on IPO valuation, check out our detailed guide. In addition to Lenskart’s high valuations, market watchers are not particularly happy with the way the management has tried to justify the concerns by simply stating the company’s aim to ‘create value for the customer’. A post shared by NDTV Profit (@ndtvprofit)
Quant Mutual Fund’s Sandeep Tandon Calls IPO Fervour ‘Stupidity’
In a recent interview with NDTV Profit, Quant Mutual Fund’s Sandeep Tandon has recently called the ongoing IPO fervour a ‘stupidity’, in an indirect reference to Lenskart and other issues, which have opened with steep valuations.
However, Shankar Sharma, who was an early investor in companies like Amazon and Apple, believes Lenskart’s valuations are a bargain, at least in relation to some of the other IPOs that have graced the Indian markets in recent years. “Phir Aisa Kya ghor paap kar raha LensKart, bhaiya?” he quipped, before clarifying that he does not own any shares of Lenskart or ‘any other kart’.
Understanding the Indian IPO Market
To understand the Indian IPO market and its trends, it’s essential to know about the Indian stock market and its dynamics. The Indian IPO market has seen a surge in recent years, with many companies opting for public listings. However, the IPO process can be complex and requires a thorough understanding of the market and its regulations.
Lenskart’s Business Model and Growth Prospects
Lenskart is an Indian eyewear company that has gained significant traction in recent years. The company’s business model is based on providing affordable and stylish eyewear to its customers. To know more about Lenskart’s business model, check out our detailed analysis. Lenskart’s growth prospects are promising, with the company expanding its operations and increasing its market share.
Shankar Sharma’s Investment Philosophy
Shankar Sharma is a well-known investor and entrepreneur who has been instrumental in shaping the Indian startup ecosystem. His investment philosophy is based on identifying companies with strong growth potential and a solid business model. To know more about Shankar Sharma’s investment philosophy, check out our detailed guide.
Conclusion
In conclusion, Shankar Sharma’s comments on Lenskart’s valuation have sparked a debate about the Indian IPO market and its trends. While some investors believe that Lenskart’s valuation is justified, others are skeptical about the company’s growth prospects. To stay updated with the latest news and trends from the Indian stock market, follow our Indian stock market news section.
FAQs
Q: What is Lenskart’s valuation?
Lenskart’s valuation is around Rs 70,000 crore.
Q: What is Shankar Sharma’s investment philosophy?
Shankar Sharma’s investment philosophy is based on identifying companies with strong growth potential and a solid business model.
Q: How can I invest in the Indian stock market?
To invest in the Indian stock market, you need to open a trading account with a brokerage firm and deposit funds. You can then buy and sell stocks through the trading platform.
For more information on how to invest in the stock market, check out our detailed guide.