Lenskart Shares Rise 7% in 2 Days After Weak Market Debut — What’s Next?

Lenskart Shares Gain 7% in Two Days After Weak Market Debut — Analysts Urge Caution on Valuation

Lenskart’s share price has staged a modest recovery since its lacklustre stock market debut, gaining nearly 7% in two days. The popular eyewear retailer, which made its much-awaited entry into the bourses on November 10, has seen steady buying interest from investors, though analysts remain cautious about its steep valuation and muted near-term profitability outlook.

Lenskart Stock Recovers After a Weak Market Debut

Lenskart’s shares listed at a discount of around 3% to their IPO price, debuting at ₹390 per share on the BSE, compared to the issue price of ₹402 per share. However, the stock managed to recover on the same day, closing marginally higher at ₹403.30 per share, a gain of 0.3% over the IPO price.

On November 11, the stock extended its gains by another 3%, bringing the total post-listing rise to about 7% in just two trading sessions. As of now, Lenskart’s share price hovers around ₹430 per share, reflecting improved investor sentiment following a weak start.

Despite the short-term bounce, experts believe that valuation concerns and profitability challenges may continue to weigh on the stock in the coming months.

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Ambit Capital Issues Rare ‘Sell’ Call Before Lenskart’s Market Debut

In a rare pre-listing move, Ambit Capital issued a ‘Sell’ rating on Lenskart shares even before their debut, setting a target price of ₹337 per share — about 16% lower than the IPO price.

Ambit’s analysis highlighted the capital-intensive nature of Lenskart’s made-to-order business model, noting that returns remain subdued compared to peers. The brokerage projected free cash flow (FCF) turning positive only by FY28, citing that the company’s return on capital employed (RoCE) of 9% and return on invested capital (RoIC) of 13% lag significantly behind comparable consumer companies, which average between 35–40%.

According to Ambit, “Lenskart’s business model and brand strength are commendable, but current valuations appear excessive relative to its financial metrics and growth trajectory.”

Analysts Caution Against Overvaluation Despite Growth Potential

Market analysts remain divided on the stock’s prospects, balancing Lenskart’s strong brand equity and expansion strategy against its premium valuation and weak profitability profile.

Independent market expert Ambareesh Baliga said that while Lenskart has a sound business model, its current valuation levels make it less appealing for new investors.

“Lenskart looks attractive from a business perspective but not at these prices,” Baliga noted. “The weak listing reinforces that investors should focus on valuation fundamentals rather than grey market hype or oversubscription levels.”

Baliga added that such subdued listings despite heavy oversubscription could temper retail investor enthusiasm in upcoming IPOs.

Shivani Nyati, Head of Wealth at Swastika Investmart, recommended a cautious approach, suggesting that investors with allotments may hold the stock for the medium to long term while keeping a stop-loss around ₹350.

“Short-term traders could consider exiting and re-entering at lower levels once earnings visibility improves,” Nyati added.

Lenskart’s Listing Reflects Cooling Sentiment in Consumer-Tech IPOs

Despite strong institutional and retail demand — with the IPO being subscribed over 28 times — Lenskart’s debut failed to replicate the euphoria of earlier consumer-tech listings.

Harshal Dasani, Business Head at INVasset PMS, said that the subdued debut and modest gains indicate investor fatigue toward overvalued growth stories.

“At current levels, Lenskart trades at a steep multiple versus both domestic and global peers. Near-term earnings visibility remains limited as the company continues to invest heavily in store expansion, brand building, and technology integration,” Dasani explained.

He added that while Lenskart’s long-term growth narrative remains intact—supported by its omnichannel model and strong market leadership—the short-term outlook appears uncertain.

“Investors may look to book profits on rallies and wait for better entry points once fundamentals align with valuation,” he advised.

Similarly, Shravan Shetty, Managing Director at Primus Partners, expects the stock to remain range-bound with a negative bias in the near term.

“The next key trigger will be Lenskart’s first post-listing earnings report. A strong performance could help the stock justify its high valuation,” he said.

Lenskart IPO Details: Strong Subscription but Valuation Overhang

Lenskart’s ₹7,278 crore IPO comprised a fresh issue of ₹2,150 crore and an offer for sale (OFS) of 12.75 crore shares. Priced between ₹382–₹402 per share, the IPO valued the company at nearly ₹70,000 crore.

Investors could bid for a minimum of 37 shares, requiring an investment of ₹14,874. The issue, open from October 31 to November 4, received an enthusiastic response with subscription levels crossing 28 times, underscoring strong demand despite broader market caution.

However, analysts now say that lofty valuations and limited profitability are tempering post-listing enthusiasm.

What Lies Ahead for Lenskart Shares

Going forward, analysts expect Lenskart’s stock to consolidate as investors await clarity on its financial performance. The company’s success in driving store-level profitability, expanding its online reach, and sustaining growth in premium eyewear sales will be critical to justify its valuation multiples.

While long-term investors may find value in Lenskart’s dominant market position and strong brand recall, experts suggest that short-term volatility is likely, given the mixed sentiment around consumer-tech listings and the company’s ongoing investment cycle.

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