Block deals today: Meesho, Lenskart shares to see action; likely selling shareholders, targets

Meesho Ltd and Lenskart Solutions Ltd are in focus on Monday morning as both stocks are likely to see block deals. SoftBank entity SVF II Lightbulb (Cayman) is looking to sell a 2.6 per cent stake, or 4.5 crore shares, in Lenskart Solutions, raising around $300 million, according to the term sheet. Meesho, meanwhile, could see Y Combinator offload shares worth $100 million, or 4.85 crore shares representing a 1.05 per cent stake, according to a report.

The floor price for the Meesho block deal has been set at Rs 197.50 per share, a 4 per cent discount to its previous close, Bloomberg reported. The floor price for the Lenskart deal has been fixed at Rs 635 per share, around 4 per cent below its Friday closing price on the BSE.

Goldman Sachs is the sole placing agent for the Lenskart deal, while Kotak Securities is handling the Meesho transaction.

Meesho target prices

Meesho has eight 'Buy' ratings, three 'Hold' calls and three 'Sell' ratings. Its 12-month Bloomberg consensus target at Rs 205.77, however, suggests nil upside potential. Axis Capital was the latest brokerage with updates on the company. The brokerage on August 18 suggested a 'Buy' and a target of Rs 230 on the stock. Macquarie has on August 5 suggested 'Underperform' wwith a target of Rs 125, the lowest on the Street. MOFSL has 'Buy' on the stock with a target of Rs 240. HSBC has 'Hold' with a target of Rs 185.

Lenskart target prices

In the case of Lenskart, there are 18 'Buy' calls, three 'Hold' calls and one 'Sell' call. Yet its 12-month Bloomberg consensus target at Rs 672.24 suggests a mere 1.6 per cent potential upside. Macquarie on August 21 suggested 'Outperform' on the stock with a target of Rs 700. ICICI Securities on the same day suggested 'Buy' and a target of Rs 750 on the stock. UBS has the highest target of Rs 800, while Ambit's Rs 496 is the lowest, Bloomberg data showed.

 ICICI Securities in a fresh note said Lenskart has turned a strong start into a sustained run, delivering over 50 per cent returns since its market debut. The company’s sustained operational outperformance remains the centrepiece of this rerating story, it said.

"We think investors would now focus on Lenskart’s ability to sustain such growth and the rationale behind the rich valuations. We estimate Lenskart’s India business to deliver a revenue CAGR of 23 per cent over FY26–31E, as we expect its store count to almost treble (2.7x) with SSSG of ~18% over the same period. Further, scale efficiencies could support an EBITDA CAGR of ~37% in India business over the same period," it said on Monday.

"We upgrade our pre-IndAS EBITDA estimate by 10-11% for FY27E/28E/29E to factor in better sales growth and higher margins in the international business. We maintain Buy with a higher target of Rs 690 (from Rs 615) on March ’28E EV/pre-IndAS EBITDA of 50x (unchanged)," Equirus Securities said in a recent note.