Lenskart shares hit 52-week high after strong Q1 results
What's the story
Lenskart Solutions Ltd. has witnessed a surge in its share price, hitting a new 52-week high of ₹626.95 per share today. The spike comes after the company reported impressive financial results for the June quarter, with its international business driving growth and operational improvements. The company's revenue jumped by 43.3% to ₹2,714.18 crore from ₹1,894.46 crore last year.
Financial performance
Lenskart's profit and EBITDA see massive jump
Lenskart's profit after tax (PAT) also saw a massive jump, rising to ₹228.43 crore from ₹61.17 crore in the previous fiscal year.
The company's earnings before interest, taxes, depreciation and amortization (EBITDA) grew by 75.1% to ₹588.48 crore from ₹336.08 crore last year.
Additionally, its margins expanded to 21.7% from 17.7% in the same period last year.
Business expansion
Strong performance in India and international business
Lenskart's India business revenue grew by 30.9% to ₹1,530.82 crore while EBIT rose by 53.3% at ₹183.28 crore.
The company's margins also expanded to 12% from 10.2% last year.
Meanwhile, its international business revenue grew by a whopping 63.4%, with EBIT rising from a loss of ₹11.4 crore last year to ₹103.67 crore this quarter and margins standing at an impressive 8.6%.
Growth indicators
Key operational metrics for the quarter
In the June quarter, Lenskart added 132 net new stores, taking its total to 3,459.
The company also saw a 39.8% increase in eye tests and an 18.3% growth in India same-store sales growth (SSSG).
Its volumes increased by 25.7% while the average selling price (ASP) grew by 6.4% to ₹1,856 from last year.
Analyst ratings
Brokerages' mixed response to Lenskart's stock
Following the strong Q1 results, brokerages have given mixed responses to Lenskart's stock.
Jefferies has a "buy" rating on the company and raised its target price to ₹680 per share from ₹600.
HSBC has a "hold" rating with a target price of ₹575 per share, while Citi maintains a "neutral" rating with a target price of ₹650 per share.