Lenskart shares surge 2% after UBS initiates coverage with Buy rating, sets Rs 730 target

Lenskart Solutions shares gained nearly 2% in early trading on Monday after global brokerage UBS initiated coverage on the eyewear retailer with a Buy rating and a target price of ₹730, citing the company’s strong market position, value-driven business model, and long-term earnings growth potential.

At 10:28 AM IST, Lenskart shares were trading near ₹503, compared to the previous close of ₹494.10. The stock touched an intraday high of ₹506.00, while the day's low stood at ₹499.00. Trading activity remained healthy, with over 11.31 lakh shares changing hands.

UBS Sees Strong Competitive Advantage

According to UBS, Lenskart has emerged as a disruptive force in the eyewear industry by offering products that match the quality of competitors while maintaining significantly lower price points. The brokerage believes this value-focused strategy has enabled the company to capture a large share of India's organised eyewear market.

The report highlighted Lenskart's extensive omnichannel presence, combining a strong retail network with a growing online platform. This integrated approach has helped the company expand its customer base and strengthen its market leadership position.

India Business Continues To Scale Up

UBS noted that Lenskart's India operations have expanded rapidly over the years, making the company one of the largest players in the organised eyewear segment. The brokerage believes the company's scale advantages, brand recognition, and customer reach provide a solid foundation for future growth.

The firm's ability to cater to a broad consumer base through affordable pricing and technology-driven offerings has also supported its market expansion.

Margin Expansion Expected To Continue

Profitability remains a key area of focus for UBS. The brokerage highlighted that Lenskart currently generates consolidated gross margins of around 69% and a pre-Ind-AS EBITDA margin of approximately 11%.

UBS expects margins to improve further as the company benefits from increasing scale, operational efficiencies, and deeper penetration across domestic and international markets. Continued expansion of higher-margin product categories could also support earnings growth.

Robust Earnings Growth Outlook

Looking ahead, UBS projects strong earnings momentum for the company. The brokerage estimates that Lenskart could deliver an earnings per share (EPS) compound annual growth rate (CAGR) of 44% between FY26 and FY31.

The optimistic outlook is supported by expectations of sustained revenue growth, improving profitability, and the company's continued ability to strengthen its leadership position in the organised eyewear market.

Lenskart share price Performance

Lenskart shares opened at ₹506.00 and traded in a range of ₹499.00 to ₹506.00 during the session. The stock remains below its 52-week high of ₹557.65 but has delivered a strong recovery from its 52-week low of ₹356.10.