Lenskart Rallies 3% After Q4 Beatas Markets See Strong Growth Runway

Mumbai, May 21: Shares of Lenskart rallied sharply on Thursday after the eyewear retailer reported a stronger-than-expected March quarter performance, prompting brokerages to retain bullish views on the stock amid robust revenue growth and continued expansion in India and overseas markets.

The stock surged as much as 3% in early trade after domestic brokerage Emkay Global maintained its “Buy” rating and raised the target price to ₹625 from ₹600, implying an upside potential of nearly 28% from the previous close of ₹486.85. At the time of writing, the stock was up 2.8% at Rs 500.

Revenue Growth Drives Optimism

Results highlighted Lenskart’s strong topline momentum despite a moderation in profitability.

The company reported a 46% year-on-year jump in revenue for the fourth quarter, driven by strong volume growth, premiumisation and expansion across both domestic and international markets.

The company exceeded estimates, inspiring confidence among investors. Source: NSE

However, consolidated net profit declined about 8% year-on-year to around ₹200 crore, due to a rise in expenses on components and inventories.

Despite the profit dip, investors focused on the company’s strong operational momentum and its ability to sustain rapid growth in a competitive consumer retail market.

Emkay Global said Lenskart delivered an “all-around beat” of nearly 10% compared with Street expectations, reinforcing confidence in the company’s long-term growth trajectory.

Analysts Bullish on Long-Term Opportunity

Brokerages remain constructive on Lenskart’s positioning in India’s fast-growing eyewear market, citing its technology-led business model, omnichannel strategy and aggressive store expansion plans.

Analysts estimate that the Indian eyewear industry, currently valued at around $9 billion, could continue to grow at a healthy pace driven by rising disposable incomes, increasing use of eyewear as a fashion accessory and greater awareness around vision correction.

Emkay Global had earlier initiated coverage on the stock with a positive outlook, highlighting the company’s vertically integrated supply chain, AI-led customer tools and automated manufacturing capabilities as key competitive advantages.

The brokerage also sees significant expansion potential in Lenskart’s store network over the next several years, both in India and overseas markets.

Stock Extends Post-Listing Momentum

Lenskart has remained among the better-performing new-age consumer platform stocks since its listing, supported by strong earnings growth and improving operating leverage.

Thursday’s rally reflected growing investor confidence that the company can continue delivering high growth while gradually improving profitability through scale and operational efficiencies.

The stock also tracked broader strength in consumer and discretionary names as improving global sentiment boosted appetite for growth-oriented companies.

Source:

• https://www.nseindia.com/get-quote/equity/LENSKART/Lenskart-Solutions-Limited