The Motilal Oswal Wealth Management Research Desk has flagged two names for the week starting September 21, 2026. Lenskart, trading at ₹707 on the BSE, is set with a target price of ₹800, implying a 13% upside. Happy Forgings (HFL), at ₹215.32, carries a target of ₹324, offering a steeper 38% potential gain. These picks reflect the brokerage's view on sustainable growth drivers in the eyewear and industrial forging sectors.
Lenskart's case rests on its ability to scale in a category traditionally resistant to mass expansion. The company’s centralized manufacturing and omnichannel strategy have yielded strong unit economics, with store payback periods under 10 months and EBITDA margins exceeding 33%. The brokerage projects the company will reach approximately 4,500 stores in India by FY29, adding around 1,900 locations over the next three fiscal years. This expansion is underpinned by healthy free cash flow, which supports the aggressive rollout without excessive debt.
Internationally, Lenskart is outperforming expectations. The pre-Ind AS EBITDA margin in 1QFY27 hit 10.5%, surpassing the brokerage's initial FY28 estimate of 9.2%, despite a 45% year-on-year jump in marketing spend. Motilal Oswal expects India and international EBITDA margins to expand to 19.4% and 13.5% respectively by FY29. This margin improvement drives a projected revenue CAGR of 27%, EBITDA CAGR of 46%, and PAT CAGR of 59% over FY26-29.
Happy Forgings presents a different growth story, anchored by a near-term order book. The company holds approximately ₹9.5 billion in incremental orders, executable over the next two to three years. Passenger vehicles (PVs) and industrials make up about 70% of this book, although they currently contribute only 24% of revenue. Management aims to raise this share to 45-50% in the medium term, a shift that should enhance revenue visibility and support sustained top-line growth.
The brokerage anticipates that higher realizations and operating leverage will push Happy Forgings' EBITDA margins from 31% to 33% by FY29. This expansion, aided by benefits from the company’s captive solar plant, underpins a forecast of 25% revenue CAGR, 28% EBITDA CAGR, and 30% PAT CAGR for the FY26-29 period. Investors should watch for updates on order execution and margin trends in upcoming quarters.