HSBC initiates 'Hold' on Lenskart despite 7,000-store expansion plan
HSBC starts coverage on Lenskart with a 'Hold' and Rs 513 target (~2% upside), praising its integrated model and sub-one-year store payback but flagging full valuation. The brand plans to nearly triple its footprint to ~7,000 stores from ~2,500, in a market growing 13% annually where it holds ~20% organised share.
HSBC initiated 'Hold' on Lenskart with a Rs 513 target, citing strong growth but full valuation. It praises Lenskart's integrated model and store economics, projecting expansion to ~7,000 stores from ~2,500 currently.
Why this matters
HSBC's debut coverage frames Lenskart as a strong operator at a stretched price, balancing its aggressive store rollout to ~7,000 outlets against a Rs 513 target offering only ~2% upside.
Retail-company signals accelerating, up +425800% QoQ.