Lenskart Solutions IPO: Ambit initiates with 'sell' before D-st debut; check target
Lenskart IPO: Domestic brokerage firm Ambit has initiated coverage on Lenskart Solutions even before its stock market listing later today, hinting over a 16 per cent fall in the stock price.
- Nov 10, 2025,
- Updated Nov 10, 2025 7:58 AM IST
Lenskart Solutions IPO: Domestic brokerage firm Ambit has initiated coverage on Lenskart Solutions even before its stock market listing later today. The domestic brokerage firm is expecting a more than 16 per cent fall in the stock price of Lenskart from its issue price thanks to its capital-heavy business model, despite strong growth potential.
"We expect Lenskart to deliver 20 per cent revenue CAGR over FY25–28 led by India expansion and rising global scale. Gross margin gains and operating leverage should drive 630bps pre-IND AS 116 Ebitda expansion," said Ambit. However, as eyewear is a made-to-order category, scaling requires capacity investments , which along with goodwill keep the balance sheet heavy, it said.
Ambit said that with a capex of Rs 2,000 crore over FY25–28E, free-cash flow (FCF) will turn positive only in FY28E. While its higher growth profile justifies premium vs retail universe, the implied 55 times FY28E Pre-IND as EV/Ebitda for India, 15-30 per cent above Trent & Nykaa BPC, is unwarranted given lower RoCE/RoIC of 9 per cent/13 per cent versus peers, it said.
Lenskart IPO was open for bidding between November 04 and 07 as the company sold its shares in the range of Rs 382-402 apiece, with a lot size of 37 equity shares. The company raised a total of Rs 7,278.02 crore from its IPO, which included a fresh share sale of Rs 2,150 crore and an offer-for-sale (OFS) of up to 12,75,62,573 equity shares.
IPO price of Rs 402 embeds 18 per cent two-decade revenue CAGR, implying 60 per cent of EssilorLuxottica’s (scale, multi-banners, brands, R&D) current MS in retail. Target price of Rs 337 implies 45 times/22 times EV/Ebitda for India/international," Ambit added, citing Higher India SSG and better international profitability as key risks for its rationale.
As a reminder, Lenskart Solutions IPO was heavily criticized for sky-high valuations on performance matix and promoter Piyush Bansal buying stake at Rs 52 and offloading stake at Rs 402 apiece, amassing nearly 8 times profit in just two months. However, Dalal Street veteran Radhakishan Damani also picked up stake worth Rs 90 crore at Rs 402 apiece from Neha Bansal, ahead of IPO.
The crashing grey market premium (GMP) for Lenskart Solutions has also added to the fear of discounted listing for the stock today. The GMP for Lenskart has plunged to Rs 6-8 per shares, ahead of its listing and investors are fearing if the stock will settle above its issue price or not.
Lenskart Solutions IPO: Domestic brokerage firm Ambit has initiated coverage on Lenskart Solutions even before its stock market listing later today. The domestic brokerage firm is expecting a more than 16 per cent fall in the stock price of Lenskart from its issue price thanks to its capital-heavy business model, despite strong growth potential.
"We expect Lenskart to deliver 20 per cent revenue CAGR over FY25–28 led by India expansion and rising global scale. Gross margin gains and operating leverage should drive 630bps pre-IND AS 116 Ebitda expansion," said Ambit. However, as eyewear is a made-to-order category, scaling requires capacity investments , which along with goodwill keep the balance sheet heavy, it said.
Ambit said that with a capex of Rs 2,000 crore over FY25–28E, free-cash flow (FCF) will turn positive only in FY28E. While its higher growth profile justifies premium vs retail universe, the implied 55 times FY28E Pre-IND as EV/Ebitda for India, 15-30 per cent above Trent & Nykaa BPC, is unwarranted given lower RoCE/RoIC of 9 per cent/13 per cent versus peers, it said.
Lenskart IPO was open for bidding between November 04 and 07 as the company sold its shares in the range of Rs 382-402 apiece, with a lot size of 37 equity shares. The company raised a total of Rs 7,278.02 crore from its IPO, which included a fresh share sale of Rs 2,150 crore and an offer-for-sale (OFS) of up to 12,75,62,573 equity shares.
IPO price of Rs 402 embeds 18 per cent two-decade revenue CAGR, implying 60 per cent of EssilorLuxottica’s (scale, multi-banners, brands, R&D) current MS in retail. Target price of Rs 337 implies 45 times/22 times EV/Ebitda for India/international," Ambit added, citing Higher India SSG and better international profitability as key risks for its rationale.
As a reminder, Lenskart Solutions IPO was heavily criticized for sky-high valuations on performance matix and promoter Piyush Bansal buying stake at Rs 52 and offloading stake at Rs 402 apiece, amassing nearly 8 times profit in just two months. However, Dalal Street veteran Radhakishan Damani also picked up stake worth Rs 90 crore at Rs 402 apiece from Neha Bansal, ahead of IPO.
The crashing grey market premium (GMP) for Lenskart Solutions has also added to the fear of discounted listing for the stock today. The GMP for Lenskart has plunged to Rs 6-8 per shares, ahead of its listing and investors are fearing if the stock will settle above its issue price or not.