Motilal Oswal Financial Services initiated coverage on Lenskart Solutions Limited amid a declining equity market and assigned a BUY rating with a target price of ₹600, citing the company’s business model and growth potential.
Indian equity markets opened lower on the last trading day of the week, tracking mixed signals from Asian markets. Investors adopted a cautious stance due to weakness in the IT sector and rising tensions between the United States and Iran. During this period, brokerage firm Motilal Oswal initiated coverage on eyewear manufacturer and retailer Lenskart Solutions Limited.
The brokerage stated that the company’s business model has the capacity for rapid growth. It noted that competition among organized players remains limited and that long‑term expansion opportunities persist, which led to the initiation of formal coverage.
Motilal Oswal assigned a BUY rating to Lenskart Solutions and set a target price of ₹600, implying an upside potential of about 25 percent from current levels. The stock closed at ₹481 on Thursday.
Over the past month, the share price has risen about 14 percent, and it has increased more than 17 percent over three months. The stock is trading below its 52‑week high of ₹533, while the 52‑week low stands at ₹355.70. The company’s market capitalization on the BSE is approximately ₹84,921 crore.
The brokerage said current valuations are attractive and may present an opportunity for long‑term investors.
According to the report, India’s eyewear market has not yet reached its full potential. Around 53 percent of the country’s population has vision‑related issues, but only about 35 percent wear prescription glasses, indicating a large segment remains outside the organized market.
The brokerage said this gap is one that Lenskart is attempting to address. As the share of organized retail increases, the company could benefit directly. It added that demand is firm and that rising awareness could expand market size in the coming years.
The report stated that one of Lenskart’s key strengths is its integrated business model, under which multiple processes from manufacturing to distribution are controlled within a single system. Machine‑driven production and supply networks help manage costs.
The company manufactures its own frames and lenses, which supports margins and allows it to maintain pricing control while offering products at competitive rates.
Lenskart operates 2,439 stores across 435 cities in India and 705 stores overseas. It also follows an omnichannel strategy through its mobile application and online platforms, allowing customers to purchase through both online and offline channels.
The report stated that the company makes extensive use of technology. Digital systems for eye testing and rapid store rollout processes have improved operational efficiency.
According to the brokerage, each new store recovers its costs in about 10 months, which it described as a favorable indicator for a retail business. It added that a short payback period supports cash flow and helps sustain expansion.
The company has adopted separate brand strategies targeting different customer segments ranging from mass‑market consumers to premium buyers, offering products from affordable eyewear to premium designer frames. The brokerage said this diversification supports a broad customer base and that brand recognition and customer trust could support growth in the future.
