“What Terrible Sin Has Lenskart Committed?” — Shankar Sharma Defends IPO as Fair Compared to 50x Tech Listings

The phrase went viral on social media in recent days — when Shankar Sharma pointedly asked: “Phir aisa kya ghor paap kar raha Lenskart, bhaiya?”

The backdrop: Lenskart is planning an IPO that values the company at around ₹70,000 crore (~US$7.8-8 billion) at a price band of ₹382–402 per share.

The valuation implies a P/E multiple over 200× and EV/Sales around 10×.

Shankar Sharma, in turn, has publicly defended Lenskart’s share issue — not because he’s invested (he says he holds no shares) — but because he believes the backlash is unfair and hypocritical, given how earlier tech-linked IPOs commanded much higher multiples.

Sharma’s Key Arguments

Comparative valuation support
He argues that Lenskart’s ~10× sales multiple is much more conservative than prior marquee listings: companies like Paytm, Nykaa, Zomato, CarTrade (and others) reportedly went public at 25-50× revenues despite large losses.
On the campaign against Lenskart
Sharma contends there is an “organised campaign” disparaging Lenskart’s IPO, perhaps driven by narrative bias rather than rigorous analysis. He said: “There is an organised campaign against Lenskart… I have never bought any specs — I don’t wear specs — but one thing is crystal clear from my lens.”
Critique of the broader IPO market
Beyond just Lenskart, Sharma uses this episode to highlight what he sees as structural problems in India’s IPO ecosystem: heavy inflows of retail capital, anchor investor hype, stories driving demand, and valuations disconnected from fundamentals. He reportedly termed India as “the dumbest IPO market in the history of IPO markets”.

The Case for Lenskart (and Why Sharma Thinks It’s Fair)

Lenskart reports FY25 revenue of ~₹6,652.5 crore (+22.5 % YoY).
It turned profitable in FY25—net profit ~₹297.3 crore. Yet this profit includes a one-time accounting gain from its Japan acquisition; adjusted profit ~₹128 crore.
The company has scale: ~2,067 stores in India, ~656 overseas.
Lenskart emphasises an omnichannel model, vertical manufacturing (including robotic lens labs), and global expansion (Asia, Middle East) with tech enhancements (AI, virtual try-ons).
From Sharma’s perspective: Given this scale and growth, the ~10× sales multiple is acceptable and certainly far less aggressive than some past tech-IPO multiples. Hence his rhetorical question: Why pick on this company?

The Flip Side: Why Critics Are Skeptical

Despite Sharma’s defence, significant caution flags persist.

Valuation stretch: Analysts note that Lenskart’s valuation is rich even at ~10× sales because eyewear retail is considered a lower-growth, lower-frequency business versus digital/tech plays.
Profitability concerns: The “profit” hinges heavily on one-off items; true recurring underlying profit remains modest.
Competitive & market risks: While organised eyewear is growing, the addressable market is still relatively niche compared to mass-tech platforms and the unorganised competition is large.
Dependence and supply-chain risks: Lenskart sources a significant portion of its materials from China; any disruption can impact margins.
Past IPO track-record caution: The memory of earlier high-flying tech IPOs that under-performed post-listing looms large. Sharma himself references that.

Thus, while the multiple is lower than many peers, the question becomes: Does the business justify the valuation given its segment, growth expectations, and risks?

What to Watch

Listing performance: Will the IPO price hold, appreciate or crater post-listing?
Operational execution: Can Lenskart demonstrate sustainable margins, growth in overseas business, and defend against competition?
Fundamentals vs hype: Will the company be judged on its core business rather than market sentiment?
Anchor investor behaviour: According to Sharma, anchor participation and retail frenzy often mask underlying issues.
Investor discipline: The broader question — are investors applying discipline, or getting swept up in stories? Sharma’s bigger critique points here.

My Take

Shankar Sharma’s intervention is interesting for a couple of reasons:

It flips the usual critique: Instead of “too expensive IPO”, he says “why is this one being singled out when others got away with far higher multiples?”.
He uses Lenskart as a lens to comment on the system — not just this company. The message: Beware herd behaviour, inflated anchoring, and narrative-driven IPO rallies.
At the same time, defending the valuation doesn’t mean ignoring risk. Even though 10× sales may sound reasonable relative to 25-50× of the past, the business context is different: retail eyewear vs tech platforms, margin profiles vs growth runway, global vs domestic scale.

In short: Lenskart’s IPO may indeed be less hyper-valued than several prior listings, but that doesn’t automatically make it a bargain. Investors still need to weigh the niche sector risks, execution complexity and valuation expectations against the promise.

Conclusion

The headline—“Aisa kya ghor paap kar raha Lenskart?”—captures the central tension. Shankar Sharma asks: Why is Lenskart being castigated when others were praised for far more aggressive valuations? The debate provokes a re-look at IPO valuation norms, investor expectations and market discipline.

For investors, the take-away is two-fold:

One: Lenskart’s pricing may be more defensible than critics suggest.
Two: But approach with eyes wide open — the business is not without risk, and valuations always demand underlying performance.

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