The much-anticipated listing of Lenskart, India’s leading eyewear retailer, has finally arrived, but market reactions remain mixed. With the stock showing volatility early on, investors face a pressing dilemma: Should they lock in profits or hold Lenskart shares for long-term growth?
Lenskart’s Market Debut and Growth Journey
Founded in 2010 by Peyush and Amit Chaudhary, Lenskart disrupted India’s eyewear market with its omnichannel strategy, blending e-commerce with 500+ offline stores. Despite strong IPO oversubscription, post-listing price swings have left investors questioning their next move.
Reasons to Book Profits Now
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Lock in Listing Gains
Early investors and pre-IPO shareholders may prefer securing profits after initial surges rather than risking a market correction. -
Macroeconomic Uncertainty
Global inflation, rate hikes, and geopolitical risks could pressure growth stocks like Lenskart in the short term. -
High Valuation Risks
The IPO priced in aggressive growth expectations. Any earnings miss could trigger a downward spiral, making profit-booking safer.
Reasons to Hold for Long-Term Growth
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Untapped Market Potential
India’s eyewear penetration is low (~30%), and Lenskart’s expansion (including acquisitions like Owndays) positions it for sustained growth. -
Recurring Revenue Advantage
Eyewear replacements and subscription models (e.g., contact lenses) ensure steady cash flow. -
Tech-Driven Competitive Edge
AI-powered eye tests, virtual try-ons, and private labels fortify Lenskart’s market dominance. -
Strong Institutional Backing
Marquee investors like SoftBank and Kedaara signal long-term confidence, offering retail investors reassurance.
Expert Recommendations
- Bullish: Motilal Oswal sees 20%+ annual returns, citing scalability and brand loyalty.
- Neutral: Kotak advises partial profit-booking due to near-term valuation concerns.
Strategic Actions for Investors
- Risk Assessment: Hold if bullish on Lenskart’s dominance; book partial profits if risk-averse.
- Track Performance: Monitor same-store sales, margins, and customer costs for red flags.
- Diversify: Balance Lenskart exposure with stable stocks to reduce volatility risk.
Final Decision
While Lenskart’s long-term potential is robust, short-term swings are likely. High-risk investors may hold, while conservative traders could exit partially. Always consult a financial advisor before deciding.
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