HSBC initiates Lenskart at 'Hold', Rs 513 target as valuation caps 7,000-store expansion upside
HSBC began coverage on Lenskart with a 'Hold' and Rs 513 target implying ~2% upside, flagging full valuation despite strong fundamentals. The eyewear retailer plans to grow from ~2,500 to 7,000 stores, holds ~20% organised market share, benefits from ~13% annual market growth and sub-one-year store payback.
HSBC initiated coverage on Lenskart with a 'Hold' rating and Rs 513 target, citing full valuation despite plans to expand from 2,500 to 7,000 stores, strong unit economics and an integrated eyewear retail moat.