Lenskart jumps 3%; MOFSL says Buy, shares bull, base and bear case price targets
MOFSL said Lenskart’s valuations are highly sensitive to growth and margin expansion in the India business. It believes that at the current market price, the stock is pricing in about 23 per cent India revenue growth.
- Feb 20, 2026,
- Updated Feb 20, 2026 10:40 AM IST
Lenskart shares rose 3 per cent in Friday’s trade after Motilal Oswal Financial Services (MOFSL) initiated coverage on the stock with a ‘Buy’ rating and a target price of Rs 600, implying a 27 per cent potential upside over Thursday’s closing price.
The domestic brokerage said Lenskart’s valuations are highly sensitive to growth and margin expansion in the India business. It believes that at the current market price, the stock is pricing in about 23 per cent India revenue CAGR, compared with its base-case estimate of about 27 per cent, and a 15.8 per cent India pre-Ind AS Ebitda margin, about 100 basis points lower than its base-case estimate.
Following the development, Lenskart shares rose 2.63 per cent to hit a high of Rs 497 on BSE. The stock is up 12.65 per cent in 2026 so far.
“Stronger-than-expected revenue growth and or sharper margin expansion could drive further upside risks to our target price, while lower growth and or weaker-than-expected margin expansion poses downside risks (bull case: Rs 735; bear case: Rs 395),” it said.
MOFSL said Lenskart has built strong moats in a category that is difficult to scale, supported by a centralised and highly automated manufacturing facility and logistics network. It cited strong backward integration, which provides a significant cost advantage, along with Lenskart’s large omnichannel presence and house-of-brands architecture spanning mass to premium eyewear, as key strengths in achieving its goal of making quality eyewear accessible and affordable.
Lenskart’s near-term free cash flow generation is expected to be impacted by upfront capex on the upcoming Hyderabad facility, aimed at future-proofing the business. However, MOFSL expects significant improvement in free cash flow generation to about 65-70 per cent of pre-Ind AS Ebitda beyond FY28.
“We initiate coverage on Lenskart with a BUY rating and a TP of Rs 600, premised on DCF-implied 55 times 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,” it said.
MOFSL expects Lenskart to deliver a CAGR of 25 per cent and 53 per cent in pro forma consolidated revenue and pre-Ind AS Ebitda, respectively, driven largely by volume growth, product margin improvement and about 625 basis points of operating leverage-driven margin expansion over FY25-28.
Lenskart is India’s largest vertically integrated, technology-led, omnichannel eyewear platform.
Lenskart shares rose 3 per cent in Friday’s trade after Motilal Oswal Financial Services (MOFSL) initiated coverage on the stock with a ‘Buy’ rating and a target price of Rs 600, implying a 27 per cent potential upside over Thursday’s closing price.
The domestic brokerage said Lenskart’s valuations are highly sensitive to growth and margin expansion in the India business. It believes that at the current market price, the stock is pricing in about 23 per cent India revenue CAGR, compared with its base-case estimate of about 27 per cent, and a 15.8 per cent India pre-Ind AS Ebitda margin, about 100 basis points lower than its base-case estimate.
Following the development, Lenskart shares rose 2.63 per cent to hit a high of Rs 497 on BSE. The stock is up 12.65 per cent in 2026 so far.
“Stronger-than-expected revenue growth and or sharper margin expansion could drive further upside risks to our target price, while lower growth and or weaker-than-expected margin expansion poses downside risks (bull case: Rs 735; bear case: Rs 395),” it said.
MOFSL said Lenskart has built strong moats in a category that is difficult to scale, supported by a centralised and highly automated manufacturing facility and logistics network. It cited strong backward integration, which provides a significant cost advantage, along with Lenskart’s large omnichannel presence and house-of-brands architecture spanning mass to premium eyewear, as key strengths in achieving its goal of making quality eyewear accessible and affordable.
Lenskart’s near-term free cash flow generation is expected to be impacted by upfront capex on the upcoming Hyderabad facility, aimed at future-proofing the business. However, MOFSL expects significant improvement in free cash flow generation to about 65-70 per cent of pre-Ind AS Ebitda beyond FY28.
“We initiate coverage on Lenskart with a BUY rating and a TP of Rs 600, premised on DCF-implied 55 times 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,” it said.
MOFSL expects Lenskart to deliver a CAGR of 25 per cent and 53 per cent in pro forma consolidated revenue and pre-Ind AS Ebitda, respectively, driven largely by volume growth, product margin improvement and about 625 basis points of operating leverage-driven margin expansion over FY25-28.
Lenskart is India’s largest vertically integrated, technology-led, omnichannel eyewear platform.