Motilal Oswal Maintains Buy Rating for Lenskart Solutions, Targets Rs 600

Motilal Oswal Research Report: Lenskart Solutions

Company Overview Lenskart Solutions is India's largest vertically integrated, technology-led, omnichannel eyewear platform. The company addresses a structurally underpenetrated eyewear category in India, with approximately 53% of the population impacted and a modest 35% penetration.

Key Strengths Lenskart has built strong moats in a difficult-to-scale category through:

• A centralized, highly automated manufacturing facility and logistics network
• Strong backward integration through in-house frame and lens manufacturing, providing a significant cost advantage
• A large omnichannel presence through its mobile app and a network of 2,439 retail stores across 435+ cities in India and 705 international stores
• Leveraging technology to ease constraints in scaling up eye tests, store expansions, and delivering superior store economics (33% store-level pre-IND AS EBITDA, 10 months payback)
• A house-of-brands architecture spanning mass to premium eyewear, making quality eyewear accessible and affordable

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Outlook We initiate coverage on Lenskart Solutions with a BUY rating and a target price of INR600, premised on a DCF-implied 55x FY28E pre-INDAS EBITDA. Our valuations for Lenskart are at a premium to other leading retailers, but we believe the multiples are justifiable, given Lenskart's superior growth profile, limited organized competition, and long growth runway.