Lenskart Solutions Ltd. is in the spotlight today as a significant block deal is underway, with Alpha Wave Ventures LP expected to sell a portion of its stake at a discounted price. This development coincides with analysts forecasting strong revenue growth for the company's second fiscal quarter.
Lenskart Block Deal Details Emerge
Investment firm Alpha Wave Ventures LP is reportedly divesting up to 1.6 percent of its equity in Lenskart Solutions Ltd. The shares are being offered at a floor price of Rs 640 apiece, representing a 5.6 percent discount compared to Friday’s closing price. The base offer for this Lenskart block deal comprises 1.51 crore shares, equivalent to 0.9 percent of the company's equity, valued at an estimated Rs 950 crore. Additionally, an upsize option could see an extra 1.13 crore shares, or 0.7 percent equity, change hands, valued at approximately Rs 724.60 crore.
Analysts Project Robust Q2 Growth for Lenskart
Ahead of its official earnings release, Lenskart is anticipated to report another strong quarter, with revenue growth projected to exceed 30 percent year-over-year for the September quarter. Several brokerage firms have shared optimistic outlooks:
- JM Financial expects Lenskart's revenue to jump 30 percent year-over-year, driven by a 31 percent uptick in the India segment and 27 percent in the international business. They also foresee an EBITDA margin expansion of 200 basis points year-over-year to 13.2 percent.
- Elara Securities forecasts a 34 percent year-over-year revenue growth for Lenskart, attributing this to robust volume growth across both its Indian and international operations, alongside higher realization due to a favorable base.
- Kotak Institutional Equities also estimates a 34 percent year-over-year revenue growth, with the India business contributing 31 percent and the international business 30 percent. Kotak's analysis suggests that this growth will primarily be volume-driven, supported by healthy store additions and strong same-store sales growth (SSSG) performance. They model a consolidated gross margin of 69.6 percent, indicating a 60 basis point year-over-year expansion, leading to a pre-IndAS EBITDA margin of 13.5 percent, a 270 basis point expansion year-over-year. Segmentally, Kotak projects a 16.1 percent pre-IndAS EBITDA margin for the India business and 10.1 percent for the International business.
These positive forecasts underscore analysts' confidence in Lenskart's continued operational performance and market expansion strategies, despite the ongoing share transaction.