Lenskart Solutions shares experienced a notable decline on Monday, falling 2.7% to hit an intraday low of ₹439 per share on the NSE amid profit booking activities. The stock has been under sustained pressure for two consecutive trading sessions, registering a cumulative decline of nearly 4% during this period.

Brokerage Initiates Coverage Despite Stock Pressure

Antique Stockbroking initiated coverage on Lenskart Solutions with a 'hold' rating, presenting a mixed outlook for the eyewear retailer. The brokerage highlighted the company's rapid scaling capabilities and improving profitability metrics within a favorable industry environment.

Growth Potential in Unorganized Market

The brokerage's analysis revealed significant expansion opportunities in India's eyewear sector, noting that only 24% of the domestic eyewear market remains organized. This presents substantial room for organized players like Lenskart Solutions to capture market share. Additionally, international markets offer considerable growth prospects for the company's expansion strategy.

Antique Stockbroking emphasized the company's technology-driven approach and centralized supply chain model as key competitive advantages. These operational frameworks enable higher efficiency levels and ensure more consistent product quality across the company's retail network.

Revenue Growth Projections and Valuation Concerns

The brokerage identified sufficient headroom for approximately 25% compound annual revenue growth in the medium term. However, analysts noted that current market valuations largely incorporate the anticipated growth trajectory, suggesting limited upside potential at present price levels.

Weak Market Debut Background

Lenskart Solutions made a subdued stock market debut in November 2025, listing at a discount to its issue price on both major exchanges. The company's initial public offering, which remained open for subscription from October 31 to November 4, achieved a subscription rate of 28.26 times despite the eventual weak listing performance.

The company's market capitalization following the listing stood at ₹67,659.94 crores, reflecting investor appetite for the eyewear retail sector despite pricing concerns. The IPO was priced within the ₹382 to ₹402 per share range, with the stock debuting below the lower end of this band on both exchanges.

Lenskart Solutions has received a bullish initiation from Emkay Global Financial Services, with the brokerage setting a Buy rating and target price of ₹525 per share. The technology-driven eyewear company, which operates across designing, manufacturing, branding, and retailing, is positioned for significant long-term growth according to the analysis.

Market Performance and Valuation

Lenskart shares were trading at ₹451.25 on Tuesday at 10:06 a.m., compared to the previous closing price of ₹456.20 on BSE, giving the company a market capitalization of ₹78,286 crores. The stock has gained approximately 10 percent since its listing debut.

The ₹7,278-crore Lenskart IPO made a muted debut, listing at ₹390 on BSE (3 percent discount) and ₹395 on NSE (1.74 percent discount) to the issue price of ₹402 per share.

Strong Financial Performance

Lenskart demonstrated robust financial growth in its recent quarterly results, showing significant improvement across key metrics.

Market Opportunity and Growth Drivers

Emkay highlighted India's eyewear market, estimated at $9 billion, as well-positioned for steady growth. The brokerage identified several key growth catalysts:

• 700 basis points GST reduction supporting market expansion
• Rising vision and refraction-related health issues
• Growing acceptance of eyewear as fashion accessory and necessity
• Industry CAGR expected at approximately 13 percent

Lenskart currently holds a 5 percent market share as India's largest eyewear retailer, with significant room for expansion in the fragmented market.

Technology-Led Competitive Advantages

The company's technology focus forms the core of its strategic differentiation. Emkay emphasized several technological capabilities:

• Backend automation and vertical integration
• Consumer-facing innovations including remote optometry
• Virtual try-on capabilities
• Geo-analytics and Vision AI for store expansion decisions
• Merchandising optimization through data analytics

Expansion Strategy and Store Economics

Lenskart's expansion strategy demonstrates attractive unit economics with strong return profiles.

The company has also gained meaningful international traction in markets such as Singapore and Dubai, supporting its global expansion ambitions.

Long-Term Growth Projections

Emkay projects substantial long-term growth potential for Lenskart, forecasting nearly 6x revenue growth in India over the next decade, translating to 20 percent CAGR. The brokerage expects:

• Revenue CAGR of 25 percent for FY25-28E
• EBITDA CAGR of 50 percent for the same period
• Average margin expansion of 150 basis points annually
• Overall EBITDA CAGR of around 30 percent

These projections compare favorably with other major retail players, who are expected to achieve 12-26 percent growth rates.

Financial Strength and Market Position

Lenskart maintains a strong balance sheet with net cash of approximately ₹4,000 crores, providing flexibility for expansion and growth investments. The company holds more than three times the scale of its nearest competitor, Titan Eyewear, in the eyewear segment.

The brokerage noted that most competitors focus on third-party premium brands, which represent only about 5 percent of India's eyewear market by volume, highlighting Lenskart's strategic positioning in the broader market opportunity.