Emkay Global has initiated coverage on Lenskart Solutions with a ‘Buy’ rating and a target price of Rs 525. This implies over 16% upside for the stock from current levels. Market leadership, better unit economics and technological moats are the top triggers driving the brokerage’s recommendation.
Emkay on Lenskart: Market leadership and scale
Currently, Lenskart is India’s largest eyewear retailer, commanding a 5% market share. The company operates at a scale more than three times larger than Titan Eyewear, which is its next closest competitor. While most eyewear players are regional or operate below the Rs 100 crore revenue mark, Lenskart’s revenue reached approximately Rs 4,000 crore in FY25.
Emkay on Lenskart: Deep technological moats
Technology is the core competitive advantage for Lenskart, integrated across all business functions.
- Back-end: Its vertically integrated supply chain and automated manufacturing (precision at the micron level) allow it to eliminate intermediaries, structurally reducing product costs.
- Front-end: Innovations like remote optometry and virtual try-ons address the structural shortage of optometrists in India and enhance customer experience.
- Expansion: The use of geo-analytics (GeoIQ) and Vision AI helps the company to identify ideal store locations and optimise merchandising.
Emkay on Lenskart: Expansion and industry tailwinds
The Indian eyewear industry is valued at $9 billion and is at a “sweet intersection” of medical necessity and fashion. It is expected to grow at a 13% CAGR, helped by a 700 basis points GST cut, rising refraction errors, and increased adoption of eyewear as a lifestyle accessory. Emkay Global expects a 3x scale-up opportunity for Lenskart’s store network in India. Over the next decade, the company’s store network is likely to grow to over 6,700 stores from 2,000.
Emkay on Lenskart: Payback period better than peers
Payback period is better than the best: When compared with leading discretionary names, Lenskart’s store-level payback of under one year clearly stands out.
Also, the wide product range, strong value proposition, and quick deliveries (the next day in 58 cities) ensure best-in-class revenue throughput. This asset-light model results in healthy unit economics and attractive store paybacks, enabling the company to scale up its store network at a faster pace without straining capital or returns.
Overall, Lenskart is the market leader of the fragmented Indian eyewear retailers and operates like a high-performance, self-sufficient ecosystem. It doesn’t just sell the product but builds the factory, designs the parts, and uses a sophisticated GPS (AI) to find shortcuts to the customer.
Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor.