During the session, Lenskart's shares rose from their initial decline to a high of ₹409.90 on the BSE and ₹413.75 on the NSE. Should investors buy more, hold on, or cash out as the eyeglasses market grows?
Following a poor start on Monday, November 10, Lenskart Solutions' stock increased. The BSE listed Lenskart's shares at ₹390, which was 3% less than the ₹402 IPO price. Lenskart shares opened at ₹395 on the NSE, a 1.74 percent discount.However, despite optimistic market mood, the stock recovered to hit a high of ₹409.90 on the BSE and ₹413.75 on the NSE during the session.
The Lenskart IPO received 28.26 subscriptions. The business raised ₹7,278.02 crore through the public offering, which included an offer-for-sale (OFS) component of 12.76 crore shares worth ₹5,128.02 crore and a fresh issue of 5.35 crore equity shares worth ₹2,150 crore.
All eyes were on the stock's listing because its grey market premium had been declining over the past few days, and the IPO was a huge success.
After the debut, investors are busy making predictions about whether to record profits or purchase further stock. To find out what investors should do, Mint consulted experts. What they said was as follows:
Healthy development outlook
All eyes were on the stock's listing because its grey market premium had been declining over the past few days, and the IPO was a huge success.
After the debut, investors are busy making predictions about whether to record profits or purchase further stock. To find out what investors should do, Mint consulted experts. What they said was as follows:
Healthy development outlook
Lenskart's primary strength is its robust market presence. The company's aggressive store expansion, data-driven supply chain, in-house production, and vertically integrated strategy all point to a promising future for growth.
According to Shivani Nyati, Head of Wealth at Swastika Investmart, Lenskart has established itself as a category leader in India's rapidly expanding organized eyewear sector thanks to its premium brand perception, subscription-based revenue stream, and growing penetration in tier-II and tier-III regions.
According to Shivani Nyati, Head of Wealth at Swastika Investmart, Lenskart has established itself as a category leader in India's rapidly expanding organized eyewear sector thanks to its premium brand perception, subscription-based revenue stream, and growing penetration in tier-II and tier-III regions.
Lenskart has an integrated business model and a leading position in India's organized eyewear sector, according to Seema Srivastava, Senior Research Analyst at SMC Global Securities. Cost effectiveness, speedy delivery, and robust scalability are made possible by the company's vertical integration, which spans from producing frames and lenses to retailing via an omnichannel network.
"Lenskart looks well-positioned to profit from the growing eyewear industry in India and overseas, with a strong FY25 performance marked by ₹6,652 crore revenue and an increased 14.6% EBITDA margin. Its long-term growth prognosis is strengthened by its emphasis on innovation, smart eyewear, and technology-driven customer experience, according to Srivastava.
However, valuations...
"Lenskart looks well-positioned to profit from the growing eyewear industry in India and overseas, with a strong FY25 performance marked by ₹6,652 crore revenue and an increased 14.6% EBITDA margin. Its long-term growth prognosis is strengthened by its emphasis on innovation, smart eyewear, and technology-driven customer experience, according to Srivastava.
However, valuations...
Investors are wary of Lenskart because of its high valuation. The stock's valuation has caused concern for a number of experts.
According to Bonanza research analyst Abhinav Tiwari, "the stock listed 3 per cent below the issue price, showing concerns about its high valuation, with a PE ratio of around 238 times already factoring in strong growth."
The stock is well valued, with a large portion of its future growth already factored in, according to Srivastava of SMC Global.
"Risks include dependence on imported materials, potential supply chain disruptions, competition, and challenges in sustaining margins amid global expansion," stated Srivastava.
How should investors proceed?
Srivastava claims that although Lenskart has a little near-term margin of safety, it presents an appealing growth story for long-term investors.
The stock is well valued, with a large portion of its future growth already factored in, according to Srivastava of SMC Global.
"Risks include dependence on imported materials, potential supply chain disruptions, competition, and challenges in sustaining margins amid global expansion," stated Srivastava.
How should investors proceed?
Srivastava claims that although Lenskart has a little near-term margin of safety, it presents an appealing growth story for long-term investors.
"Those who have a strong appetite for risk can think about holding or accumulating on corrections, placing bets on its market leadership and execution quality. Before making an investment, conservative investors might wait for stable profitability or a comfortable valuation, according to her.
Investors who have been allocated shares should think about holding them for the medium to long term, according to Nyati of Swastika Investmart. This recommendation is backed by earnings visibility and an expanding retail base. Short-term traders were urged to leave the position and seek out better possibilities elsewhere, with a stop-loss of approximately ₹350.
Despite the high demand for Lenskart's IPO, Tiwari advised investors to exercise caution.
Investors who have been allocated shares should think about holding them for the medium to long term, according to Nyati of Swastika Investmart. This recommendation is backed by earnings visibility and an expanding retail base. Short-term traders were urged to leave the position and seek out better possibilities elsewhere, with a stop-loss of approximately ₹350.
Despite the high demand for Lenskart's IPO, Tiwari advised investors to exercise caution.
"The company's high expenditure and quick growth could negatively impact short-term earnings. Although management anticipates long-term margin gains from operating leverage and Lenskart is still a leader in India's organized eyeglasses market, the valuation is costly and offers little margin for safety, according to Tiwari.
"The Q2 data and a potential 15-20% price correction are what investors should be anticipating. Since the market eventually aligns a stock's price with its true intrinsic value, new investors should wait for better entry levels, according to Tiwari.
"The Q2 data and a potential 15-20% price correction are what investors should be anticipating. Since the market eventually aligns a stock's price with its true intrinsic value, new investors should wait for better entry levels, according to Tiwari.
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