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Emkay, Avendus Initiate Lenskart Coverage With Rs 525 and Rs 490 Targets

Price targets around Rs 490–525 reflect bullish growth models versus rich valuations.

Overview

  • Emkay initiates coverage with a Buy rating and a Rs 525 target, using a DCF‑implied multiple of 56x Dec‑27E EBITDA.
  • Avendus Spark starts with an Add rating and a Rs 490 target, projecting 21% revenue CAGR for FY25–28 and a 550 bps EBITDA margin uplift.
  • Emkay models ~25% revenue CAGR and ~50% EBITDA CAGR for FY25–28 and points to sub‑one‑year store payback and ~64% India gross margins.
  • Brokerages cite Redseer’s ~13% industry CAGR view driven by a 700 bps GST cut, rising refraction errors, and eyewear’s fashion appeal.
  • Lenskart shares trade near Rs 455 after a Rs 355.70–495 range since the Nov. 10 listing, with brokers noting limited near‑term upside despite ~Rs 4,000 crore net cash and aggressive expansion, including 450 planned FY26 store additions and global rollout.