Lenskart Share Price Gets Boost After Avendus Spark Initiates Coverage
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.
Understanding the Indian Eyewear Market
The Indian eyewear market is a significant sector, with immense growth potential. According to the World Health Organization, refractive errors are projected to affect 470 crore people, or 55% of the global population, by 2030, with Asia expected to lead growth. Indian 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.
Lenskart’s Business Model
Lenskart has succeeded in the Indian eyewear market by adopting a manufacturer-to-consumer (M2C) business model while leveraging proprietary technology and innovation. The company’s vertically integrated manufacturing model eliminates intermediaries, enabling competitive pricing and consistent product quality.
The 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. Manufacturer to consumer business model has been a key factor in Lenskart’s success.
Avendus Spark’s Initiation Note
In its initiation note, Avendus Spark highlighted the significant total addressable market opportunity. The brokerage also 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. Omni-channel retail has been a key strategy for Lenskart’s growth.
Financial Projections
On the financial front, Avendus Spark 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.
Investment Opportunities
The Indian eyewear market presents significant investment opportunities, with Lenskart being a key player. Investing in Indian stock market requires a thorough understanding of the market trends and company performance.
With Avendus Spark’s initiation of coverage, Lenskart’s share price is likely to be in focus. Stock market news India will be closely watching the developments in the Indian eyewear market.