Target: ₹525
CMP: ₹452.65
We initiate coverage on with Buy and TP of ₹525, based on DCF implied multiple of 56x Dec-27E EBITDA.
The Indian eyewear industry (worth $9 billion) has huge macro tailwinds — 700bps GST cut, rising refraction error, and increasing adoptability as a fashion accessory — which should drive about 13 per cent industry CAGR (Redseer).
Lenskart is India’s leading eyewear retailer (market share: 5 per cent) and aspires to become a global giant, helped by technology being at the core across all business functions.
It is an agile firm, aided by automation/vertical integration at the back-end, remote optometry/virtual try-ons at the front-end, and use of geo-analytics/Vision AI for identifying new locations/merchandising.
With scale-up, these moats are reflecting in the company’s superior value proposition (15-16 per cent SSG (Same-Store Sales Growth)), faster deliveries (the next day in 58 cities), accelerated network expansion (450 additions in FY26E), and leading share, even in international geographies such as Singapore/Dubai.
Lenskart enjoys an attractive store-level payback of about 10M, on the back of high throughputs and low investment required at the store level; the metric stands favorably across leading peers in the discretionary space.