Lenskart Share Price: Morgan Stanley Sees 10% Upside Potential in Newly Listed Stock

Morgan Stanley Initiates Coverage on Lenskart With Equal-Weight Rating

Shares of Lenskart Solutions came into focus after global brokerage Morgan Stanley initiated coverage on the newly listed stock with an ‘Equal-weight’ rating and a target price of ₹445 per share. The brokerage believes the stock is fairly valued at current levels, but still sees nearly 10 percent upside potential from recent prices.

At its previous close of ₹405.95, Morgan Stanley’s target suggests moderate headroom for gains. The stock ended December 15 marginally lower at around ₹404 per share, reflecting cautious near-term sentiment even as long-term fundamentals draw attention from institutional investors.

Brokerage Views Lenskart as a Play on Changing Lifestyle Trends

In its initiation note, Morgan Stanley described Lenskart as a distinctive play on shifting lifestyle dynamics in India. The brokerage highlighted that the company’s business model is largely insulated from macroeconomic headwinds, given the essential nature of vision correction and rising discretionary spending on eyewear.

According to the report, Lenskart benefits from increasing screen time, urbanisation, rising awareness around eye health, and premiumisation trends within the eyewear segment. These factors, Morgan Stanley believes, provide structural tailwinds that can support steady growth irrespective of short-term economic cycles.

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Potential to Emerge as India’s EssilorLuxottica

One of the more notable observations in the report is Morgan Stanley’s view that Lenskart has the potential to evolve into an EssilorLuxottica-like platform from India. EssilorLuxottica is the global leader in eyewear, combining manufacturing strength, brand ownership and retail scale.

The brokerage pointed out that Lenskart’s vertically integrated model, spanning design, manufacturing, distribution and retail, positions it uniquely in the domestic market. With a strong omnichannel presence and expanding global footprint, the company could gradually build scale advantages that are difficult for competitors to replicate.

Listing Performance Reflects Initial Volatility

Lenskart’s journey in the secondary market has been marked by volatility since its debut. The stock listed at a discount on November 10, despite the company’s ₹7,278-crore IPO receiving strong investor interest and being subscribed over 28 times during the three-day bidding window.

Post-listing, sentiment improved and the stock rallied nearly 14 percent, touching a high of ₹448.80 on December 1. However, that momentum has since cooled, with shares correcting nearly 10 percent from the peak.

At current levels, the stock is trading just around 0.5 percent above its IPO price of ₹402, indicating that the market is still in the process of discovering a fair valuation for the company.

Q2 FY26 Results Reinforce Growth Narrative

Lenskart’s Q2 FY26 financial performance has added support to the long-term growth story highlighted by Morgan Stanley. In November, the company reported a net profit of ₹103.5 crore, marking a 20 percent year-on-year increase compared with ₹86.3 crore in the same quarter last year.

Revenue from operations rose 21 percent year-on-year to ₹2,096 crore, reflecting strong demand across channels and continued store expansion. The growth in both revenue and profit indicates improving operating leverage and execution strength, which investors will closely monitor in the coming quarters.

Why Morgan Stanley Sees Limited Downside at Current Levels

Morgan Stanley’s equal-weight stance suggests a balanced risk-reward profile at current prices. While the brokerage does not see aggressive upside in the near term, it believes downside risks are also limited given Lenskart’s earnings visibility, brand strength and scalable business model.

The brokerage’s target price of ₹445 implies confidence that the stock can revisit levels close to its post-listing high, provided execution remains on track and profitability continues to improve.

What Investors Should Track Going Forward

For investors, Lenskart’s stock performance from here will likely hinge on a few key factors:

• Consistency in revenue growth amid store expansion and online penetration

• Margin trajectory, especially as the company scales operations

• Competitive intensity in the eyewear and lifestyle retail space

• Execution in international markets, which could unlock additional growth avenues

While near-term price movements may remain volatile, institutional commentary suggests that Lenskart is increasingly being viewed as a long-term consumption and lifestyle play rather than a short-term listing trade.

Outlook: Steady Upside, Not a Straight-Line Rally

Morgan Stanley’s initiation sets a measured tone for expectations around Lenskart shares. The brokerage’s view indicates that while the stock may not deliver outsized gains immediately, it offers steady upside potential supported by strong fundamentals and secular demand drivers.

As the market continues to evaluate newly listed consumer-facing companies, Lenskart’s ability to sustain growth and profitability will be key to determining whether the stock can move meaningfully beyond its IPO range over time.

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