HSBC: Lenskart Valuations Limit Upside, Initiates 'Hold' Rating

• HSBC initiated coverage on Lenskart Solutions Ltd. with a 'hold' rating and a price target of ₹513 per share.
• The price target of ₹513 is close to the stock's post-listing high of ₹543, implying a 3.6% upside from Wednesday's closing.
• HSBC noted Lenskart's backward integration and D2C business create high moats, with TAM expansion driving sustainable growth.
• The brokerage expects Lenskart's revenue and EBITDA to grow at a CAGR of 23% and 49% respectively over FY25-28.
• HSBC believes Lenskart's current valuation, compared to peers, limits significant stock price upside.