Now Reading: Lenskart shares gain on strong Q1 profit, MSCI inclusion
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Lenskart shares gain on strong Q1 profit, MSCI inclusion
Lenskart shares closed 1.78% higher at ₹596.90 on the NSE on Thursday after hitting a 52-week high of ₹626.95. The rally followed a strong Q1 showing and news that MSCI will add…
The Story in Brief
Lenskart shares closed 1.78% higher at ₹596.90 on the NSE on Thursday after hitting a 52-week high of ₹626.95. The rally followed a strong Q1 showing and news that MSCI will add the stock to its Global Standard index from September 1. The company reported net profit of ₹221.84 crore (The Hindu Business Line) or ₹228.4 crore (Inc42), a sharp jump from ₹61.2 crore a year ago. Revenue grew 43% to ₹2,714.18 crore, with India revenue up 30.7% and international revenue rising 38%.
Lenskart’s board approved raising its stake in Chinese joint venture Baofeng Framekart Technology to 70% for about ₹10.6 crore. It also announced new subsidiaries in South Korea and China. Most brokerages retained positive ratings and raised target prices, though Citi and HSBC cautioned on valuation.
The Indian Opinion
Brokerage hype around Lenskart’s premiumisation and international margin expansion is real, but Citi and HSBC rightly flag the steep valuation. The stock trades at 45x FY30 EV/EBITDA, pricing in years of flawless execution. Meanwhile, currency risk from Chinese frame sourcing persists, and India same-store sales growth slowed to 18% from 24% last quarter. MSCI inclusion on September 1 may trigger passive inflows, but the real test will be whether Q2 maintains momentum against a high base.
Sources (2): thehindubusinessline.com, inc42.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
