Lenskart shares jumped 13%
On Thursday, the shares of Lenskart Solutions created a huge stir in the stock market. The figures revealed in the company’s quarterly results are no less than a miracle. The net profit of the company has increased by about 70 times compared to last year. As soon as the company’s results came, Lenskart shares jumped 13% on BSE to reach its level of Rs 526.
Profit directly increased from Rs 1.85 crore to Rs 131 crore.
The figures presented by Lenskart in its second earnings announcement are quite shocking. Last year, in the same quarter, the company’s profit was only Rs 1.85 crore, which has now increased by a huge jump of 6,983% to Rs 131.02 crore.
The company’s revenue has also increased by 38%, which has now reached Rs 2,308 crore. The special thing is that this growth is not limited to India only. While Indian business witnessed a growth of 40.4%, international business also grew at a pace of 33%. The company says that this profit has come not from cost cutting, but from adding new customers and increasing volume.
The company made a new record of i-test
The biggest reason behind this success of Lenskart is their aggressive expansion. In this quarter alone, the company conducted 63 lakh eye tests, which is 54% more than last year. When more people get their eyes checked, the sales of eyeglasses automatically increase. According to statistics, 89 lakh spectacles were sold during this period.
The company has opened 195 new stores in just three months to expand its reach. Of these, 169 stores were opened in India and 26 abroad. This figure shows that the company is strengthening its hold in Tier-2 and smaller cities also. The interesting thing is that despite the opening of so many new stores, the sales of the old stores have not decreased, in fact growth has been recorded there too.
Is there still an opportunity to invest?
After such excellent results, the question in every investor’s mind is whether there is still an opportunity to buy shares? Brokerage house Jefferies has increased its target price to Rs 575 while maintaining ‘Buy’ rating on the stock. He believes that the company is focusing on long-term growth, which will automatically increase profits.
JM Financial has also advised buying with a target of Rs 565. He says that with the increase in the number of I-tests, the size of the market is increasing. However, Citi seems a little cautious. Giving ‘neutral’ rating, he has set a target of Rs 520. He believes that good growth has already been factored into the share price, so the next quarter’s results and currency fluctuations will have to be kept an eye on. Lenskart founder Piyush Bansal has made it clear that the company is now in the ‘compounding phase’.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
