HSBC initiates Lenskart at 'Hold', Rs 513 target flags stretched valuation despite 7,000-store plan
HSBC begins coverage of Lenskart with a 'Hold' rating and Rs 513 target implying ~2% upside. It credits an integrated moat and strong unit economics with under 1-year payback, but sees valuation as full. Store base expected to nearly triple to ~7,000 from ~2,500 amid 13% annual eyewear market growth and 20% organised share.
HSBC initiated 'Hold' on Lenskart with Rs 513 target, citing strong fundamentals and integrated moat but stretched valuation. It expects expansion to ~7,000 India stores from 2,500 amid 13% eyewear market growth.