Now Reading: Lenskart shares hit record high on near four-fold profit jump
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Lenskart shares hit record high on near four-fold profit jump
Lenskart shares hit a record high of Rs 627 on August 13 after the eyewear retailer reported a near four-fold jump in net profit to Rs 228 crore for the June quarter.…
The Story in Brief
Lenskart shares hit a record high of Rs 627 on August 13 after the eyewear retailer reported a near four-fold jump in net profit to Rs 228 crore for the June quarter. Revenue rose 43.3% year-on-year to Rs 2,714 crore, driven by 23% volume growth in India and 37% overseas. The company added 132 net stores, taking its total count to 3,459. Motilal Oswal raised its target price to Rs 705, citing strong backward integration and omnichannel presence as competitive advantages.
However, Geojit Investments' Gaurang Shah cautioned investors to check whether one-time gains boosted profitability. He stressed that new-age companies must be evaluated on fundamentals, valuations and long-term potential. Lenskart also increased its stake in a Chinese frame-manufacturing joint venture and incorporated new subsidiaries in South Korea and China.
The Indian Opinion
Eyewear is a personal necessity, not a stock tip. While Lenskart's 273% profit jump and record share price of Rs 627 make headlines, numbers this round deserve scrutiny. Geojit's Gaurang Shah rightly asks whether one-time gains inflated the bottom line. The real test lies in how quickly those new Indian stores turn profitable and whether the China supply chain gets localised. Pricey valuations already bake in a lot of optimism. A consistent OCF conversion above 80% will matter more than next quarter's top line.
Sources (3): businesstoday.in, livemint.com, livemint.com (2)
This story was synthesised by AI from the 3 sources linked above.
Updated: this story now draws on 3 sources.
