Nomura initiates coverage on Lenskart with Buy rating, sees 40% upside to Rs 888
Quick Look
- Nomura initiated coverage on Lenskart with a 'Buy' rating and target price of Rs 888, citing 40% upside potential, strong market position, scalable model, and MSCI inclusion prospects driving inflows of $352 million.
- The stock has risen 46% in 2026 and saw a major block deal with participation from global and domestic institutional investors.
AI-generated summary
Why It Matters
Lenskart Solutions debuted on the stock market in November 2025 after raising Rs 7,278 crore through a fresh issue and offer for sale. The company has grown from a challenger to a market leader in India's fragmented prescription eyewear sector, with Nomura noting its scalable, vertically integrated model and low cost structure.
Nomura has initiated coverage on Lenskart with a 'Buy' rating and a target price of Rs 888 per share, implying around 40% upside potential from the stock's previous closing price. The international brokerage highlighted that Lenskart has a long runway of more than 10,000 planned stores, with only 27% of that potential tapped. It noted how the company holds a market share of 5%, double that of the second player, in a highly customised, fragmented and unorganised prescription eyewear category in India.
It has created a strong moat, a scalable and profitable business model with end-to-end vertical integration from centralised manufacturing to retailing and tech-data-AI-enabled operations, resulting in a cost structure that is 35-40% lower than the industry average, Nomura said.
While Lenskart started its operations in 2010, the international brokerage believes its growth journey has just started and has the potential and visibility to open 10,000 stores, from around 2,700 stores in FY26, over the next decade and a half.
Adding to the bullish momentum, Lenskart shares will be among the stocks set to be included in the MSCI index, potentially attracting inflows worth $352 million, according to a report by Nuvama Alternative and Quantitative Research.
Lenskart share price
Shares of Lenskart Solutions debuted on the stock market in November 2025 after raising Rs 7,278 crore through a combination of a fresh issue and an offer for sale by promoters and existing investors. The company's shares listed at Rs 395 per share on NSE, representing a 1.75% discount to the issue price of Rs 402. On the BSE, the shares opened at Rs 390, a 3% discount to the issue price.
The shares have surged around 16% in one month, and 46% in 2026 so far. Last week, a large block deal took place in the stock, where Alpha Wave Ventures entities sold shares in multiple transactions, all at Rs 630 apiece. Among the buyers were Goldman Sachs Bank Europe, Morgan Stanley Asia Singapore, ICICI Prudential Mutual Fund, ICICI Prudential Life Insurance Company, SBI Mutual Fund, HDFC Standard Life Insurance Company, WhiteOak Capital Mutual Fund, Kotak Mahindra Mutual Fund, Motilal Oswal Mutual Fund, Bajaj Life Insurance, Kuwait Investment Authority and the National Pension System (NPS) Trust.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
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What to Watch
AI outlook — possibilities, not facts
Lenskart will open approximately 10,000 stores over the next decade and a half
Likely · Within years
Lenskart's inclusion in the MSCI index will attract approximately $352 million in foreign institutional inflows
Possible · Within months
Open Questions
- What is the exact timeline for Lenskart to reach its 10,000-store goal?
- How will MSCI inclusion specifically impact foreign institutional ownership limits?
- What are the key risks to Lenskart's growth trajectory beyond market competition?
