Lenskart Share Price: Why HSBC Initiated ‘Hold’ Despite a 7,000-Store Expansion Plan

HSBC Securities and Capital Markets (India) has initiated coverage on Lenskart Solutions with a target price of Rs 513, indicating an upside of about 2% from current levels. The brokeragehas maintained a ‘Hold’ rating, stating that the current valuation already factors in much of this growth and leaves limited room for further gains.

HSBC describes Lenskart as the largest eyewear company in India with a strong position in an underpenetrated market that is expected to grow at a steady pace over the next few years. It expects revenue and earnings before interest, taxes, depreciation and amortisation to grow sharply, supported by store expansion, rising adoption of organised retail and improving margins. Even so,HSBC on Lenskart: Market leadership