Global brokerage firm Jefferies has initiated coverage on Lenskart with an optimistic buy rating and set a target price of Rs 500 for the eyewear retailer. Analysts highlighted that Lenskart, being India's largest technology-driven eyewear retailer, currently holds merely about 5% market share, indicating substantial room for expansion.
Brokerage Actions on Indian Stocks
Jefferies sees strong growth potential in Lenskart, praising its vertically integrated omni-channel business model that ensures cost efficiency, rapid delivery capabilities, and superior customer experience. The company's India operations serve as the foundation, contributing over 85% to its EBITDA, while international markets provide additional growth opportunities.
Analysts believe Lenskart offers attractive unit economics and fast paybacks, which should drive more than 50% adjusted EBITDA compounded annual growth rate between FY25 and FY28. This projection underscores the company's robust growth trajectory in the coming years.
Automobile Sector Update
In other brokerage developments, Nomura maintained its buy rating on Mahindra & Mahindra (M&M) with a target price of Rs 4,355. The automotive giant launched its new 7-seater electric XEV 9S SUV on November 27 at an introductory price of Rs 19.95 lakh, significantly below market expectations of Rs 23-31 lakh.
Bookings for the XEV 9S model will commence on January 14, 2026, with deliveries starting from January 23, 2026. The vehicle, built on the INGLO platform and powered by MAIA technology, comes equipped with premium features at this attractive price point.
Infrastructure and Energy Sector Moves
Kotak Institutional Equities upgraded JSW Infrastructure from sell to reduce with a target price of Rs 270. Analysts expressed comfort with the company's prospects, noting it would leverage group capabilities to generate reasonable returns on growth investments over the next five years.
The brokerage also found reassurance in JSW Infrastructure's recovery strategy for Jaigarh, which involves using pricing and investment levers to regain market share in Maharashtra. However, Kotak flagged that the key risk remains the longevity and sustainability of growth, while noting that recent price corrections still don't provide an attractive buy entry point.
Meanwhile, UBS maintained its buy rating on GAIL with a target price of Rs 215, despite describing the recent tariff hike as disappointing. Analysts clarified that the 12% hike in announced tariffs doesn't translate to an equal increase in realized tariffs, which could be even lower.
The current tariff revision reflects changes in only two parameters: an increase of Rs 5.16/mmbtu due to higher system-use-gas and Rs 1.92/mmbtu increase due to lower volume divisor as per latest capacity determination. The regulator deferred review of other parameters to FY28, noting that a true-up of all parameters now would lead to material tariff increases and unexpected financial pressure on customers.
Insurance Sector Outlook
JP Morgan assigned an overweight rating on LIC with a target price of Rs 1,200, anticipating that product mix shift, margin expansion, and distribution diversification would drive growth for the life insurance major. Analysts also believe that GST removal is likely to increase both penetration and density of the insurance market.
Interestingly, the company doesn't plan to pass on the cost benefit to either distributors or customers, according to analyst observations. This strategic decision could potentially enhance the company's profitability in the evolving insurance landscape.
