Shares of Lenskart Solutions rebounded following a subdued debut on Monday, November 10. On the BSE, the stock was initially listed at ₹390, a 3% discount to the IPO price of ₹402, while on the NSE, it debuted at ₹395, down 1.74% from the issue price.

However, the stock gained momentum during the session, reaching ₹409.90 on the BSE and ₹413.75 on the NSE, driven by positive market sentiment.

Lenskart’s IPO was oversubscribed 28.26 times, raising ₹7,278.02 crore from the public issue. This comprised a fresh issue of 5.35 crore shares worth ₹2,150 crore and an offer-for-sale of 12.76 crore shares worth ₹5,128.02 crore.

Analysts Highlight Growth Prospects

Experts remain optimistic about Lenskart’s long-term growth potential:

• Shivani Nyati, Head of Wealth at Swastika Investmart, highlighted the company’s premium brand perception, subscription-based revenue, and growing presence in tier-II and tier-III cities, positioning Lenskart as a leader in India’s organised eyewear market.
• Seema Srivastava, Senior Research Analyst at SMC Global Securities, noted Lenskart’s vertically integrated business model, spanning manufacturing, retailing, and omnichannel distribution, which enables cost efficiency, scalability, and fast delivery. She added that the company’s FY25 revenue of ₹6,652 crore and 14.6% EBITDA margin support a strong growth outlook, further strengthened by innovation in smart eyewear and tech-driven customer experience.

Concerns Over Valuation

Despite strong fundamentals, experts caution about Lenskart’s high valuation:

• Abhinav Tiwari of Bonanza pointed out that the stock’s PE ratio of ~238 already reflects strong growth, contributing to its muted listing performance.
• Srivastava noted risks including reliance on imported materials, potential supply chain disruptions, competition, and margin pressures amid global expansion.

Investment Guidance

Analysts recommend a cautious approach for investors:

• Long-term investors may consider holding or accumulating shares during market corrections, betting on Lenskart’s execution strength and market leadership.
• Short-term traders may consider exiting or waiting for better entry points, as near-term upside appears limited due to rich valuations.
• Suggested stop-loss for current investors is around ₹350.

Tiwari advised that investors wait for Q2 results and a potential 15-20% price correction, as over the long term, the market aligns stock prices with fundamentals.

Overall, while Lenskart presents a strong growth story in India’s eyewear market, valuation concerns and near-term profitability pressures warrant caution for new and short-term investors.