Now Reading: Lenskart shares jump on strong Q1 profit, MSCI inclusion
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Lenskart shares jump on strong Q1 profit, MSCI inclusion
Lenskart Solutions shares closed nearly 2% higher at ₹596.90 on Thursday after the eyewear retailer reported a multifold surge in consolidated net profit to ₹221.84 crore for the April-June quarter. Revenue from…
The Story in Brief
Lenskart Solutions shares closed nearly 2% higher at ₹596.90 on Thursday after the eyewear retailer reported a multifold surge in consolidated net profit to ₹221.84 crore for the April-June quarter. Revenue from operations grew 43.3% to ₹2,714.18 crore, with the India segment up 30.7% to ₹1,531 crore and international revenue rising 38% to ₹1,203 crore. The company also announced an increase in its stake in Chinese joint venture Baopeng Framekart to 70% for about ₹10.6 crore.
Global index provider MSCI will add Lenskart to its Global Standard index as part of its August review, with changes taking effect on September 1. Multiple brokerages raised their target prices on the stock. Jefferies retained a buy rating with a target of ₹680, citing strong growth and margin expansion. Morgan Stanley kept an overweight rating with a target of ₹666, noting international operations drove the quarterly beat. Goldman Sachs raised its target to ₹715, calling premiumisation a new growth vector.
The Indian Opinion
The cheering for Lenskart's quarterly numbers and MSCI inclusion drowns out a more sober fact: same-store sales growth in India slipped to 18% from 24% in the previous quarter. Brokerages call it a high-base effect, but that deceleration deserves scrutiny, especially as the company pushes premium products. International margins are rising, but the China joint-venture expansion carries currency and regulatory risk. The real test will be whether domestic volume growth picks up in the second half, or if the premium push cannibalises the bottom-end ₹500 product.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
