Six out of 16 Lenskart analysts see the stock beyond ₹600 after Q4 results; Details here

Shares of Lenskart Solutions Ltd. gained as much as 6% on Thursday, May 21, after the company reported its fourth quarter results.

Six out of the 16 analysts who have coverage on the stock, have price targets in excess of ₹600 on the stock. Equirus Securities has the highest target for Lenskart at ₹662, followed by Motilal Oswal at ₹650. Axis Capital, Goldman Sachs, Emkay and Jefferies make up that list.

Jefferies Sees 23% Upside

Brokerage firm Jefferies has a "buy" recommendation on the stock with a price target of ₹600 per share, indicating an upside of 23% from its previous close.

It said the company reported another standout quarter, with strong growth and smart margin gains across India and international markets.

Lenskart's management commentary remains positive, with excessive focus on compounding growth, which should percolate into better profitability, Jefferies said.

AI is touching all aspects of the business and Lenskart benefits from its control over value chain, with a series of initiatives underway that should further improve the speed and agility, the brokerage added.

Lenskart In Q4

Lenskart reported an 8.6% decline in its net profit to ₹200 crore in the fourth quarter compared to ₹218.8 crore in the previous year.

However, its revenue, EBITDA and margin increased in the quarter under review. Its revenue came in at ₹2,515.7 crore, up 45.6% from the previous year's ₹1,727.5 crore.

Its earnings before interest, tax, depreciation and amortisation (EBITDA) increased 84% to ₹538.4 crore from ₹293 crore in the fourth quarter last year, while margins expanded to 21.4% from 16.9% in the year-ago period.

Shares of Lenskart Solutions are trading 3% higher on Thursday at ₹500.8, having pared some of the initial advance. The stock is down 7% over the last one month, but has gained nearly 14.5% so far this year. The stock trades well above its IPO price of ₹403 per share.

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