Lenskart Solutions shares crack 5% after Rs 1,985-crore block deal; Alpha Wave likely sells take

ETMarkets.com

According to multiple media reports, Alpha Wave Ventures LP was looking to sell up to a 1.6% stake in Lenskart Solutions for up to Rs 1,691 crore at a floor price of Rs 640 per share. The floor price represents a 5.2% discount to Lenskart’s closing price last Friday. The Economic Times could not independently verify the buyers and sellers in the deal.

The sellers will be subject to a 30-day lock-in period before making any further stake sale. At the end of the June quarter, promoter entities held a 17.53% stake in Lenskart, while public shareholders held 82.05%, according to data available on the stock exchanges. Of this, Alpha Wave Ventures LP held a 3.42% stake in the company, part of which it sold in August.

Buy, sell or hold Lenskart shares?

Earlier this month, Morgan Stanley raised its target price on Lenskart Solutions to Rs 718 from Rs 666 while maintaining its Overweight rating. The revised target price implies an upside of over 6% from current market levels. Lenskart shares have risen 35% in the past six months and over 5% since the beginning of the year.

The brokerage raised its FY27-FY30 revenue estimates by 0-2% and earnings estimates by 3-7%. It also raised its EBITDA margin assumptions for the India business by 20-40 basis points (bps). International revenue estimates were increased by 1-5% for FY27-FY30, with revenue growth projected at 24% in FY27 and 19% annually in FY28-FY30. International EBITDA margin assumptions were also raised by 20-40 bps over the four-year period.

Morgan Stanley rolled its model forward by two months to October 2027. Its bull-case valuation was raised to Rs 1,154 from Rs 1,048, implying a 41% upside, while its base-case valuation increased to Rs 641 from Rs 600. The bear-case valuation was raised to Rs 304 from Rs 290.

Lenskart Q1 results

Lenskart Solutions reported a 182.3% year-on-year (YoY) increase in net profit to Rs 228 crore in the first quarter of FY27. Revenue from operations grew 33.6% YoY to Rs 2,214 crore, while earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 61.3% YoY to Rs 589 crore. The eyewear retailer said growth was broad-based, with revenue from India increasing 30.7% YoY and international revenue rising 38%.

Consolidated product margin crossed 70% for the first time, reaching 70.3% in Q1 FY27, compared with 68.7% a year earlier. EBITDA margin also improved to 21.7% from 18.0%. India operations recorded an EBITDA margin of 21.4%, while international operations posted a margin of 21.9%.

In its shareholders’ letter, the company said it had reached its highest-ever customer numbers in “Real Bharat” by selling glasses for Rs 500, including lenses and a warranty, profitably through Hustlr Club. At the other end of the spectrum, glasses fitted with high-end Rodenstock and Tokai lenses, including progressive lenses priced at Rs 30,000, generated annual sales of around Rs 250 crore.