Risk Reward Update

Research evidence excerpt

Risk Reward Update

UpdateM

RiskRisk RewardReward– Lenskart- LenskartSolutions LimitedSolutions(LENS.NS) Limited (LENS.NS)

All Eyes on Scale

PRICE TARGET Rs628.00 OVERWEIGHT THESIS

Weighted (60% base, 25% bull, 15% bear) 12M forward EV/EBITDA for India business and 12M ▪Lenskart’s strategic focus on full vertical

forward EV/sales for International business. integration in manufacturing, its robust

Base: India in line with retail peers; International in line with global eyewear peers supply chain and advanced technology,

Bull: India in line with technology peers; International in line with global market leader combined with operational efficiency in

EssilorLuxottica store expansion and customer engagement,

Bear: India at 40% discount to retail peers; International in line with global eyewear peers position it as a superior business model

excluding the market leader. capable of competing successfully both

locally and globally. Rs593.79 ▪Lenskart is a distinctive play on shiftingConsensus Price Target Distribution Rs437.00 Rs730.00 lifestyle dynamics and is largely insulated MS PT

from macro headwinds. We believe ifSource: Refinitiv, Morgan Stanley Research Mean Morgan Stanley Estimates

executed well, Lenskart could achieve global

scale with high profitability.

▪With a strong F26 performance, we

RISK REWARD CHART believe the company has raised the bar for

growth projections moving forward, which

should support stock outperformance.

INR

Rs1,010.00Rs1,010.00(+85.00%)Rs1,010.00(+85.00%)(+85.00%)

Consensus Rating Distribution

79% Overweight

16% Equal-weight

750 5% Underweight

Rs628.00Rs628.00(+15.03%)Rs628.00(+15.03%)(+15.03%) MS Rating

Rs545.95Rs545.95Rs545.95

500 Source: Refinitiv, Morgan Stanley Research

250 Risk Reward Themes