Lenskart Solutions shares jump 7% after Q1 results; Jefferies, Goldman Sachs, 3 others raise target price
Shares of Lenskart Solutions gained as much as 7% to their day’s high of Rs 627 on the BSE on Thursday after it reported a
Shares of Lenskart Solutions gained as much as 7% to their day’s high of Rs 627 on the BSE on Thursday after it reported a 182.3% year-on-year (YoY) jump in net profit (PAT) to Rs 228 crore in the first quarter of FY27.The company’s revenue from operations rose 33.6% YoY to Rs 2,214 crore during the quarter, while earnings before interest, taxes, depreciation and amortization (EBITDA) increased 61.3% YoY to Rs 589 crore. The eyecare services provider said growth was broad-based, with revenue from India rising 30.7% YoY and international revenue increasing 38%.Also read: Lenskart, Delhivery, among 10 stocks with highest increase in DII holdings in Q1. See full listConsolidated product margin crossed the 70% mark for the first time, reaching 70.3% in Q1 FY27 compared with 68.7% a year earlier. EBITDA margin also improved to 21.7% from 18.0%, with margins at 21.4% in India and 21.9% in international operations.Buy, sell, or hold Lenskart shares?Jefferies has maintained a Buy rating on Lenskart and raised its target price to Rs 680 (16% upside) from Rs 600, saying Q1FY27 further strengthens the company's growth and margin expansion story.
The brokerage said market creation remains a key priority, with supply rather than demand emerging as a constraint in India, as reflected by around 70,000 daily eye tests. Lenskart has also strengthened its presence at the lower end with a fully loaded Rs 500 product, while a clear premiumisation trend is emerging. Jefferies believes improving margins in the international business should address a key investor concern, while it sees potential for Meller to become the "Ray-Ban of future".Morgan Stanley has an Overweight rating on Lenskart with a target price of Rs 666 (14% upside), saying the company delivered another quarter of strong performance in Q1, with the beat driven largely by the international business. Strong performance, optimistic management commentary and higher earnings estimates support its expectation of continued stock outperformance.Goldman Sachs has an Accumulate rating on Lenskart and raised its target price to Rs 715 (22% upside) from Rs 625, saying the growth and margin flywheel continues to deliver. The brokerage highlighted significant margin expansion in the international business as SSSG remains elevated, while India's business continues to see volume-led revenue growth and operating leverage-driven margin expansion.
Goldman Sachs also identified premiumisation as a new growth vector for the company.Read more: Lenskart to become eyewear industry's Tanishq? Elara makes big predictionMacquarie has an Outperform rating on Lenskart and raised its target price to Rs 675 (15% upside) from Rs 625. The brokerage said India's Q1 performance was in line with expectations, while the international business delivered a beat, supported by stronger margin expansion. Macquarie remains positive on strong volume growth, continued premiumisation across lenses and frames, the attractive Rs 500 entry-level offering and the potential for more than 10,000 stores in India. Stronger international margins have led to a 4% upgrade to its EPS estimates and an 8% increase in the target price.Motilal Oswal has maintained a Buy rating on Lenskart and raised its target price to Rs 705 from Rs 655 (20.3% upside). The brokerage said growth momentum and margin expansion remain strong, with scale, backward integration and margin expansion continuing to drive earnings. MOSL has raised its product margin assumptions by around 50 bps for FY27/28E and expects in-house frame manufacturing to support further margin expansion and earnings growth.
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