- Price then
- INR 126.00 /-
- Market cap then
- INR 312 Cr.
Yash Optics & Lens manufactures and distributes spectacle lenses in India through B2B and B2C channels. The note highlights capacity expansion and backward integration, while also pointing to working-capital-intensive operations and competition from unorganised players. It gives no stock recommendation, target price or upside.
About Yash Optics & Lens
Incorporated in 2010 and based in Mumbai, Maharashtra, Yash Optics & Lens manufactures, trades, distributes and supplies spectacle and optical lenses. Its products range from single vision to customised progressive lenses with multiple coatings, across economy-to-luxury customer segments. It operates through B2B sales to distributors and B2C sales to opticians and through branch offices or a sales depot. Its ISO 9001:2015-certified facility is in Kandivali (W), Mumbai.
Product and distribution: The company offers a portfolio of 36 brands and is the exclusive distributor for Pentax lenses in India under an agreement with Hoya Lens India Pvt. Ltd. It states that prescription lenses are delivered within 24-48 hours of order placement.
Investment Rationale
- Capacity expansion: Progressive lens capacity was increased by 60% for the premium segment. The report also lists installed capacity of 5,080 lenses per day.
- Backward integration: A new facility at Vapi, Gujarat is dedicated to finished lens production. The company also plans to use IPO proceeds for a manufacturing unit producing plain blanks and finished single vision lenses (CR-39), used as raw material in its current process.
- Broad product range and channels: The company serves different customer segments with single vision, bifocal, progressive and special-category lenses, selling through both B2B and B2C channels.
- Export presence: The report states that the company has a presence in 30+ countries. Exports accounted for 12.3% of operating revenue in FY25.
- Potential margin support: The report expects gross margins to improve with the backward integration facility.
Yash Optics & Lens Key Financials
| Particulars | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Revenues | 30 | 40 | 41 | 43 |
| % Y-o-Y | 98.8% | 33.4% | 3.6% | 5.1% |
| EBITDA | 10.2 | 12.5 | 14.6 | 12.6 |
| EBITDA % | 34.3% | 31.4% | 35.5% | 29.1% |
| PAT | 6.8 | 8.1 | 9.0 | 9.6 |
| PAT % | 22.8% | 20.3% | 21.9% | 20.8% |
| Total Debt | 4.0 | 10.9 | 25.3 | 14.6 |
| Debt / Equity | 0.36x | 0.57x | 0.85x | 0.16x |
| CFO | 7.7 | (2.3) | (12.4) | 5.7 |
| CFO/EBITDA | 75.6% | (18.5%) | (84.9%) | 45.2% |
| NWC Days | 126 | 203 | 247 | 278 |
Revenue increased from 41 in FY24 to 43 in FY25, while EBITDA declined from 14.6 to 12.6. The report notes that RHP revenue estimates of INR 43 Cr. for FY24 and INR 56 Cr. for FY25 were missed.
Valuation and Target Price
The report lists a CMP of INR 126.00 /- and a PE Ratio of 32.5x. It does not provide a valuation method, stock recommendation, target price or upside. Credit Rating is stated as Not rated.
- INR 126.00 /-
- CMP
- INR 312 Cr.
- Market capitalisation
- 32.5x
- PE Ratio
- Not rated
- Credit Rating
Key Risks
- Working capital: The company holds substantial inventory to support a portfolio of over 250 products. It also extends credit to B2B customers in a fragmented market and when entering new territories.
- Longer working-capital cycle: NWC Days rose from 126 in FY22 to 278 in FY25. CFO was negative in FY23 and FY24, at (2.3) and (12.4), respectively.
- Unorganised competition and low ticket sizes: The report describes the spectacles market as value-led, with unorganised shops controlling ~80% of unit volumes and an implied average price around ₹770 per pair.
- Revenue execution: FY24 and FY25 RHP revenue estimates were INR 43 Cr. and INR 56 Cr., respectively; the report says actual revenue missed these estimates despite the company having manufacturing capacity.
- Scale of competitors: The peer and capacity comparisons show larger stated lens capacities at several other players, including Vision Rx Lab (India), GKB Hi-Tech and GKB Ophthalmics.
Business and Capacity
The report’s capacity table lists existing capacity of 5,080 units and actual production of 3,100 units in FY24 and H1-FY25, with capacity utilisation of 61.0% in each period. The company’s IPO proceeds were also allocated to plant and machinery, repayment of borrowings, working capital and general corporate purposes.
| Particulars | INR Cr. | Remarks |
|---|---|---|
| Funding capex for setting manufacturing unit for backward integration | 18.3 | Manufacture plain blanks & finished single vision lenses (CR-39) used as raw material in current process |
| Purchase plant & machinery at existing manufacturing unit | 11.9 | Installation of new machineries at existing facility |
| Repayment of borrowings | 6.0 | Reduce debt |
| Funding working capital | 10.0 | RHP estimated FY24 and FY25 revenues of INR 43 Cr. & INR 56 Cr. (However FY25 revenues were miss) |
| General Corporate Purposes | 3.8 | NA |
Net proceeds of INR ~50 Cr. from fresh issue.
Industry Overview
The report estimates that approximately 30 crore people need vision correction, while 12 crore currently use glasses. It describes India’s eyewear market as growing, but value-led, with high reliance on imported lens materials and a large unorganised retail segment.
- Market growth: India’s eyewear market revenue in 2024 was estimated at $6.1 Bn., with an expected annual CAGR of 7.54% from 2024 to 2028, citing the Yash Investor presentation Dec’24.
- Import dependence: The report states that over 95% of lens material used in India is imported, primarily from China, Japan and South Korea.
- Demand profile: The Indian spectacles retail market is placed at around $3.3–4.3 billion in 2024–25, with a reported CAGR of 5–11% since 2018. The report cites an implied average price around ₹770 per pair and unorganised shops controlling ~80% of unit volumes.
- Domestic supply: Domestic manufacturing is described as covering only ~20–30% of volumes; many firms import blanks and components for local assembly or coating.
Peer Comparison
The company identified GKB Ophthalmics Ltd. as its listed peer in the RHP. The report’s comparison shows Yash Optics & Lens with FY25 revenue of 43, EBITDA % of 29.1% and PAT % of 20.8%; GKB Ophthalmics had FY25 revenue of 109, EBITDA % of (2.6%) and PAT % of (6.4%).
Shareholding
| Particulars | Pre-IPO | 30-Sep’25 |
|---|---|---|
| Promoter & Promoter Group | 97.45% | 73.18% |
| Public | 2.55% | 26.82% |
| Total | 100.00% | 100.00% |
Company listed on NSE-SME on 08-Apr’24. M.Cap at IPO was INR 200.60 Cr. priced at INR 81 per share. Fresh Issue of INR 53 Cr. & nil OFS.
Our View
The note highlights progressive lens expansion and backward integration, alongside a broad product range and export presence. It also draws attention to working-capital needs, low ticket sizes, unorganised competition and revenue estimates missed. The report provides no stock recommendation or target price.
Standard disclosures
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Rating rationale
Minerva Capital Research Solutions endeavors to provide objective opinions and recommendations. Ratings are assigned to stocks according to their fair value vs current market price and then categorizes them as Buy, Hold, Reduce, Sell. The performance horizon is one year unless specified and fair value is defined as analyst’s valuation for a stock.
- Buy:> 15%
- Hold: -5% to 15%
- Reduce: -15% to -5%
- Sell: <-15%