Peyush Bansal was at his witty best at the IPO press conference held by his eyewear company, Lenskart which will list on stock exchanges on November 10. His 15-year-old company has footprints today across India, Japan, Southeast Asia and the Middle East.

Bansal, according to his own words, is eyeing global domination — similar to the IT services industry in India.

But beyond the vision, it is the valuation and the pricing of INR 70,000 Cr that has captivated market analysts.

Only two months back, Bansal bought back shares from existing investors valuing Lenskart at $1 Bn (INR 52 per share). But the company later went on to file its IPO documents and the price band was set at INR 382-402 per share.

While Lenskart only turned profitable in FY25 posting INR 297 Cr in profit, the 70,000 Cr IPO valuation puts it a staggering 237 price to earnings multiple.

Sunny Agrawal, who heads fundamental research at SBI Securities, told Inc42 that while this share price jump within two months will be noticed by retail investors, the pricing seems to be more of a promoter-driven move to consolidate his stake in the company.

The Titan Group of which Lenskart rival Titan Eye Plus is a subsidiary is trading at 88x PE multiple currently.

Compared to other established Indian consumer retail and lifestyle brands like Titan or Avenue Supermarkets, which are trading at a multiple between 85-110x, Lenskart is demanding a valuation that is a significant premium.

“Titan, Avenue are some of the most highly-valued, established, and profitable consumer companies in India. This pricing is likely accounting for aggressive future growth and margin expansion over the next five years,” Sahen Karmachandani, founder of wealth advisory firm, WealthInIndia said.

Agrawal of SBI Securities points towards the fact that when at 10X multiple for price to sales, the valuation that Lenskart is seeking is at par with the global consumer companies benchmark.

“Some of the global companies trade at 10-20x sales multiple and I think that is exactly what Lenskart is comparing with. While the valuation may look hyped now, Lenskart is selling its story of betting on its future growth and topline with setting up 300 new stores in the country and expanding to newer international markets,” Agrawal added.

The SBI Securities reserch head believes the market opportunity looks humongous, but Lenskart’s business roadmap will be under scrutiny.

© Inc42