Lenskart shares jump over 2% after Avendus initiates coverage with buy rating, sets target price at Rs 490

Shares of Lens card rose over 2% in early trade after brokerage firm Avendus initiated coverage on the stock with a buy rating and a target price of ₹490 per share. The positive stance is driven by Lenskart’s disruptive direct-to-consumer business model and its ability to address long-standing structural challenges in India’s eyewear retail segment.

In its initiation note, Avendus said Lenskart has fundamentally reshaped the eyewear market through its manufacturer-to-consumer (M2C) approach. This model improves affordability, ensures consistent product quality and delivers a superior customer experience in a category that has historically been fragmented and inefficient. The brokerage believes this structural advantage gives Lenskart a sustainable edge over traditional eyewear retailers.

Avendus highlighted that Lenskart’s fully integrated operating model, spanning product design, manufacturing, logistics and retail, enables tight control over execution while allowing the company to scale efficiently. A key differentiator, according to the brokerage, is Lenskart’s proprietary technology stack, which enhances operational agility, improves predictability in store network expansion and drives higher customer conversion rates across both online and offline channels.

The brokerage also pointed out that Lenskart has successfully built a repeatable and scalable playbook in India, which it is now replicating across international markets such as Japan, Singapore, Thailand and the UAE. Avendus believes the company’s strong brand recall, technology-led execution and disciplined expansion strategy position it well to scale profitably outside India, while leveraging its manufacturing capabilities and supply chain strengths.

On the financial outlook, Avendus expects Lenskart to deliver a consolidated revenue CAGR of 21% over FY25–FY28supported by steady store additions, improving same-store productivity and increasing penetration of premium and private-label products. The brokerage also forecasts a consolidated EBITDA margin expansion of around 550 basis points over the same period, driven by operating leverage, supply chain efficiencies and a rising contribution from mature stores.

According to Avendus, the combination of category leadership, scalable technology platform and an expanding global footprint underpins its positive view on the stock. The brokerage added that the risk-reward profile remains favourable as Lenskart transitions from a high-growth disruptor into a more profitable global eyewear platform.