Shares of Lenskart Solutions Ltd experienced a significant rally on Wednesday, climbing almost 4% following a positive update from global brokerage Morgan Stanley. The firm not only reiterated its 'Overweight' rating on Lenskart but also elevated its target price for the stock from Rs 666 to Rs 718.
The stock's surge pushed Lenskart's market capitalization to Rs 1.20 lakh crore. This positive sentiment was further bolstered by another prominent brokerage, MOFSL, which also upgraded its target price for Lenskart.
Morgan Stanley's Positive Outlook
Morgan Stanley's revised outlook for Lenskart included adjustments to its international business projections. The brokerage increased its international revenue estimates for fiscal years 2027 through 2030 by 0 to 2 percent, and international earnings by 3 to 7 percent. This recalibration also involved rolling its financial model forward by two months, now extending to October 2027. However, Morgan Stanley kept its India revenue estimates unchanged.
The brokerage also updated its scenario ranges for Lenskart. Its bull case moved to Rs 1,154 from Rs 1,048, while the base case was adjusted to Rs 641 from Rs 600. The bear case scenario was also revised to Rs 304 from Rs 290.
MOFSL Also Raises Target
Adding to the bullish sentiment, MOFSL (Motilal Oswal Financial Services) maintained its 'Buy' rating on Lenskart and raised its target price even higher, to Rs 800 from its previous Rs 705. MOFSL's September note attributed Lenskart's robust performance primarily to strong earnings momentum and consistent upgrades to consensus estimates, rather than a mere re-rating of its valuation multiple.
MOFSL anticipates impressive growth for Lenskart, projecting that the company's revenue, pre-IND AS EBITDA, and adjusted PAT will grow at Compound Annual Growth Rates (CAGRs) of 27%, 46%, and 59%, respectively, between FY26 and FY29. The brokerage also expects Lenskart to expand its retail footprint significantly, increasing its store network in India to 4,500 outlets by FY29, an increase from its earlier estimate of 4,300 stores.
Furthermore, MOFSL raised its consolidated pre-IND AS EBITDA estimates for FY27-28E by 4% and 8%, respectively. This adjustment factors in a higher number of store additions in India and anticipated operating leverage across both Lenskart's Indian and international business segments. The brokerage predicts that pre-IND AS EBITDA margins will improve to 19.4% in India and 13.5% internationally by FY29.