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📰 Lenskart Stock: Strong Business, But Valuation Raises Questions

💡 Company Snapshot

Lenskart Solutions Ltd is India’s largest organised eyewear retailer—covering design, manufacturing, branding and retailing of prescription glasses, sunglasses and contact lenses.
Its FY25 reported revenue was roughly ₹7,010 crore, with ~33.5% two-year CAGR and over 2,800 stores globally.
The company’s IPO in late 2025 raised significant attention: It targeted a valuation of ~₹70,000 crore (~US $8 billion) at an issue price of ₹382-402 per share.

📉 What’s Happening with the Stock

On its debut, the shares listed at ~₹390 on the NSE (below issue price of ₹402) and fell as much as ~11% shortly after.

Analysts have flagged valuation concerns: The price-to-earnings ratio works out to over 200× (or more when adjusted), which many consider stretched for a business still scaling.

Financial metrics show low return on equity and return on capital relative to the hype. Data: ROE ~4% (last 3 years); book value etc suggest moderate returns.

📋 Key Upsides

Large addressable market: Under-penetrated eyewear market in India + growing international presence.

Vertically integrated supply chain: Manufacturing in India, control over costs and speed (including next-day delivery) gives competitive edge.

Omnichannel business model: Stores + online + subscription/membership (“Lenskart Gold”) enhances customer stickiness.

⚠️ Key Risks & Things to Watch

Valuation risk: With high multiples, the margin for error is small. Any slowdown or competition could trigger sharp correction.

Profitability & margins: Although profitable in FY25, much of the gains came from one-time items; core margin remains thin and subject to cost inflation and competition.

Competitive threat: New entrants (domestic/overseas) and price pressures could impact market share and margin expansion.

Execution risk: Scaling stores, maintaining supply chain, international operations all require strong execution; past performance shows growth but also thin margins.

📌 Investment Takeaway

For investors considering Lenskart stock:

If you believe in the long-term eyewear growth story, brand strength and omnichannel retail, Lenskart offers exposure to a large niche with potential.

But if you're looking for a near-term trade with upside based on IPO “pop” or quick returns, risks may outweigh rewards at current valuation.

A prudent approach: Monitor upcoming quarterly results, margin trends, growth in international business and if the valuation gets reset to more reasonable levels.