In a submit on X (previously Twitter), he remarked: “I’ve by no means purchased any specs (I don’t put on specs) ever, however one factor is crystal clear from my lens: there’s an organised marketing campaign towards Lenskart. At ~10x gross sales, it’s a steal in comparison with P/gross sales valuations of Paytm, Nykaa, Zomato, PB, CarTrade, and so on., who IPO’d at 25-50x their revenues (with loads of losses too).”
Hyperlink: https://x.com/1shankarsharma/standing/1983562051806245297
Lenskart is concentrating on a valuation of round Rs 70,000 crore (roughly US$7.9 billion) for its IPO, primarily based on a worth band of Rs 382-402 per share. Sharma’s remark comes because the itemizing garners robust consideration and debate over its pricing a number of.
Within the post-IPO dialog, Sharma argued that evaluating Lenskart to earlier tech-heavy listings that debuted at 25-50x gross sales is deceptive, suggesting that the eyewear firm’s a number of of round 10x gross sales gives a comparatively conservative entry level.
Sharma additionally clarified that he holds no shares in Lenskart or another “Kart” firm, noting this disclosure to stress that his view is impartial and with out battle of curiosity.In the meantime, different voices have supplied a extra cautious perspective. A person on X identified that Lenskart’s complete addressable market is considerably smaller in comparison with Zomato (meals supply), Nykaa (magnificence and private care), or Paytm (digital funds).He famous that these are mass-consumption, high-frequency markets, whereas eyewear is extra low-frequency, area of interest, and replacement-driven.
As Lenskart heads in the direction of its IPO, it continues to place itself as India’s main eyewear retailer with a robust omnichannel technique and increasing worldwide presence. Whether or not Sharma’s defence of the valuation influences investor sentiment will turn out to be clear because the IPO unfolds.
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(Disclaimer: Suggestions, options, views, and opinions given by the consultants are their very own. These don’t characterize the views of The Financial Instances.)
