Yash Optics & Lens Ltd · NSE:YASHOPTICS · Investment Analysis

Business Model — About · Value Chain · Moat · R&D

Ophthalmic lens manufacturer | NSE SME | Vapi, Gujarat | IPO 2023

Company Overview

Yash Optics & Lens Ltd is a Vapi (Gujarat)-based manufacturer of ophthalmic lenses, primarily catering to the domestic Indian optical distribution chain. The company produces CR-39 plastic lenses, single vision, bifocal, and progressive lenses distributed through optical wholesalers and retail chains. Founded in the early 2000s, the company listed on NSE SME in 2023, raising capital to fund its Vapi manufacturing expansion.

Revenue has compounded at ~37% CAGR over FY22–FY26, driven by capacity additions and expanding distribution reach. The company occupies the mid-market segment in Indian ophthalmic lens manufacturing, competing with both domestic players and imported Chinese lenses at the lower end. The promoter family holds 73.2% post-IPO, indicating high ownership alignment.

Company Evolution Timeline

Early 2000s

Founded in Vapi, Gujarat; lens distribution & trading

2010-15

Backward integration into lens manufacturing (CR-39 casting)

FY22-23

Revenue ₹15–19 Cr; pre-IPO growth phase, domestic expansion

FY24

NSE SME IPO · Revenue ₹43 Cr · IPO proceeds deployed

FY26

Revenue ₹54 Cr; Vapi expansion (CWIP ₹22 Cr) underway

Value Chain Position

Raw Monomer
CR-39, PC imports

→

Lens Casting
Semi-finished blanks

→

Yash Optics ★
Finished lenses & coating

→

Wholesale Distributors
Regional optical traders

→

Optical Retailers
Opticians / chain stores

→

End Consumer
Prescription eyewear

Revenue Segments (Estimated)

Segment	Est. % Revenue	Description	Trend
Finished Ophthalmic Lenses	~70%	Single vision, progressive, bifocal; CR-39 & PC	Growing
Semi-Finished Lens Blanks	~20%	Supplied to lab chains for Rx finishing	Stable
Coatings & Accessories	~10%	AR coating, UV, hard coat supply	Growing

Moat Assessment

Cost Advantage

Manufacturing in Vapi (Gujarat industrial zone) with lower costs vs imports. However, Chinese manufacturers can undercut significantly — moat is moderate. Input (monomer) imported; domestic finishing adds value.

Switching Cost & Relationships

Optical distributors prefer reliable domestic suppliers for quick replenishment and CR service. Long-standing distributor relationships provide partial moat — moderate durability. NSE SME listing improves credibility with institutional buyers.

Scale Limitations

₹54 Cr revenue is small relative to global leaders (EssilorLuxottica ~$25Bn). No significant IP or patent protection. Scale moat is weak currently; Vapi expansion critical to build meaningful scale advantages in India.

⚠ Moat analysis is qualitative — not a guarantee of future performance.

Capabilities & Strategy

Manufacturing strengths · Capacity · Strategic priorities

⚙ Manufacturing

CR-39 monomer casting & curing; Hard coat, anti-reflective (AR), UV coating lines; Semi-finished and Rx-ready finished lenses. Single facility in Vapi, Gujarat with ISO certifications. CWIP of ₹22.38 Cr represents ~70% revenue in new capex — significant capacity addition underway.

📈 Distribution

National distributor network covering major optical wholesale hubs (Mumbai, Delhi, Chennai, Kolkata). Serves optical retail chains and independent opticians. High inventory (483 days) partly reflects distribution pipeline stocking. No direct-to-consumer exposure currently.

🎯 Strategic Priorities (FY26-28)

1. Commission Vapi expansion — double manufacturing capacity by FY27
2. Expand to premium lens segments (high-index, digital progressives)
3. Reduce inventory days to <300 via improved demand forecasting

Capacity Utilisation (Estimated)

Parameter	Current	Post-Expansion (FY27E)	Status
Installed Capacity (lens units/yr)	Est. 8–10 lakh pairs	Est. 18–22 lakh pairs	Expanding
Utilisation Rate	~75–80% (est.)	To be determined post-commissioning	Healthy
CWIP Status	₹22.38 Cr on books	Expected capitalisation FY27	In Progress
Revenue per unit (approx)	₹50–70 / pair	Target ₹65–85 / pair (premiumisation)	Strategy

Opportunity — Why & Timeframe

India optical market · TAM · Tailwinds · Positioning

🌎 TAM — India Optical Market

₹8,000–12,000 Cr total addressable market (ophthalmic lenses + frames + accessories)
Ophthalmic lenses alone: ~₹3,500–5,000 Cr
CAGR: 12–15% per industry estimates (IMARC, etc.)
Sources: IMARC Group India Eyewear Market Report 2024; Euromonitor Optical Retail India

📈 Key Tailwinds

1. Myopia Epidemic: WHO estimates ~50% of global population myopic by 2050; India among fastest-growing markets
2. Premiumisation: Shift from basic single-vision to progressive & high-index lenses — higher ASP
3. Import Substitution: Domestic lens manufacturing benefits from import duty structure on finished lenses
4. Digital Eye Strain: Rising screen time driving Blue Light lens demand

🕑 Timeframe

Near-Term (0–12M): Vapi expansion completion trigger; revenue runway to ₹70+ Cr

Medium-Term (1–3Y): Scale to ₹100+ Cr revenue with margin expansion; potential institutional coverage

Long-Term (3Y+): Premium lens segments, potential export market entry, possible Mainboard migration

Operations & Projects

Capex · Expansion · Customers

Project	Location	Outlay (₹ Cr)	Timeline	Status	Impact
Vapi Manufacturing Expansion	Vapi, Gujarat	~22.38 Cr (CWIP)	FY27 commissioning	In Progress	Double capacity; ₹80–100 Cr revenue potential
AR Coating Line Upgrade	Vapi	Included in CWIP	FY27	Bundled	Higher-margin premium lenses
Distribution Network Expansion	Tier 2/3 Cities	Working capital	Ongoing	Active	Volume growth, inventory management

Key Customers / Distribution

Optical wholesale distributors across India; no single customer >30% of revenue disclosed (verify in annual report). Goes through multi-tier distribution: Yash → State Distributors → District Wholesalers → Optical Retailers.

Working Capital Note

⚠ Inventory Days: 483 (FY26) — equivalent to 16 months of COGS in inventory. This is significantly above industry norms (typically 60–120 days for lens manufacturers). Represents the single largest operational risk. Management must explain and resolve this in upcoming earnings calls.

Regulatory Changes & Impact

BIS · Import duties · Optical sector regulations

Scheme / Regulation	Benefit / Impact	Status	Est. Impact
BIS Certification (IS 14980)	Mandatory quality standard for ophthalmic lenses sold in India; domestic manufacturers at advantage	Compliant	Positive — barrier vs. non-compliant imports
Import Duty on Finished Lenses	~20% basic customs duty on finished ophthalmic lenses; protects domestic manufacturers	Active	Structural advantage vs. cheap Chinese imports
GST Structure (12% on eyewear)	Moderate GST on eyewear vs. earlier higher rates; aids consumer affordability	Positive	Volume growth driver
Ayushman Bharat — Vision Coverage	Potential inclusion of vision correction in PM health schemes	Watch	Medium-term volume driver if implemented

Financials & Growth

5-year trend · Revenue · EBITDA · PAT · EPS

Revenue (₹ Cr) + YoY Growth %

EBITDA (₹ Cr) + EBITDA Margin %

PAT (₹ Cr) + PAT Margin %

EPS (₹, post-IPO normalized) + ROCE %

Metric	FY22	FY23	FY24	FY25	FY26	CAGR
Revenue (₹ Cr)	15.3	19.4	43.2	43.2	54.0	+37%
EBITDA Margin	~19%	~21%	~24%	~25%	27.3%	Expanding
PAT (₹ Cr)	~1.0	~1.5	~12.3*	~9.6*	9.05	Variable
EPS (₹, norm.)	—	—	4.95	3.87	3.65	▼ Declining
ROCE (%)	—	—	~18%	~15%	12.84%	▼ CWIP drag

* PAT FY24 & FY25 calculated from normalized EPS × 2.477 Cr shares; pre-FY24 PAT estimated. Verify via Screener.in

Research Reports & Analyst Coverage

NSE SME — Limited institutional coverage

Coverage Status

As an NSE SME-listed company with ₹319 Cr market cap, Yash Optics has no institutional research coverage from major brokerages (Motilal Oswal, Kotak, ICICI Securities, Axis Capital). SME-focused advisory firms and retail analyst blogs may cover the stock. This presents an information advantage for early-stage fundamental investors willing to do independent research.

Consensus (Where Available)

No Bloomberg/Refinitiv consensus estimates available for NSE SME stocks.

Key Themes to Track:
• Vapi expansion commissioning timeline
• Inventory Days normalization progress
• ROCE recovery trajectory post-CWIP capitalisation
• Premium lens product launches (high-index, digital progressives)

Research framing only. Not investment advice. Analyst estimates sourced from public reports and screener.in.

Balance Sheet & Cash Flows — Fraud Filter

Balance sheet health · Working capital · Integrity checks

Balance Sheet Item	FY26 (₹ Cr)	Notes
Total Debt	4.53	Near Debt-Free ✅
CWIP (Capital Work in Progress)	22.38	Vapi expansion — yet to be capitalised
Fixed Assets (Gross, est.)	~35–45	Pre-expansion asset base
Cash & Equivalents (est.)	~5–8	IPO proceeds partially deployed
Inventory (est.)	~30–35	HIGH — 483 inventory days ⚠
Trade Receivables (est.)	~8–12	Debtor Days ~60–80 (est.)
Promoter Equity / Net Worth (est.)	~65–80	Post-IPO; P/B ~4–5x

Working Capital — CCC Analysis

Metric	FY26	Industry Benchmark	Signal
Inventory Days	483	60–120 days	🔴 CRITICAL FLAG
Debtor Days (est.)	~60–80	30–60 days	🟠 WATCH
Cash Conversion Cycle	~471 days	90–180 days	🔴 Well Above Norm

Fraud Filter Checklist

⚠️

Receivable Days trending up?
Data insufficient for trend — monitor QoQ

🔴

Inventory Days 483 vs Revenue Growth?
Inventory growing faster than sales — RED FLAG

⚠️

CFO / PAT Ratio?
Need annual report verification; high inventory suggests CFO < PAT

✅

Pledged Promoter Shares?
73.2% promoter stake — no pledge disclosed; clean

✅

Debt-Free Balance Sheet
Total debt ₹4.53 Cr only; no leverage risk

✅

Auditor Changes?
Verify in recent annual reports; no known changes flagged

⚠️

Related Party Transactions?
Common in promoter-run SMEs; verify magnitude in annual report

✅

IPO Proceed Utilisation?
CWIP of ₹22.38 Cr aligns with stated IPO purpose; reasonable

P&L Deep Dive — Annual & Quarterly

Annual performance + quarterly trend

Year	Revenue (₹ Cr)	YoY%	EBITDA (₹ Cr)	EBITDA%	PAT (₹ Cr)	PAT%	EPS (₹)
FY22	15.28	—	~2.9	~19%	~1.0	~7%	—
FY23	19.38	+26.8%	~4.1	~21%	~1.5	~8%	—
FY24	43.22	+123%	~10.4	~24%	~12.3*	~28%	4.95
FY25	43.21	~flat	~10.8	~25%	~9.6*	~22%	3.87
FY26	53.99	+24.95%	14.74	27.3%	9.05	16.8%	3.65

* FY24&FY25 PAT derived from normalized EPS. FY24 high PAT margin may reflect lower D&A pre-CWIP capitalisation + exceptional items. Verify via Screener.in audited financials.

Key Observations from P&L

• FY24 revenue doubling (+123%) is the inflection point — likely driven by new manufacturing capacity funded by IPO proceeds
• FY25 revenue flat (−0.02%) suggests post-IPO consolidation / distributor inventory correction
• FY26 strong +24.95% rebound with EBITDA margin expansion to 27.3% shows operating leverage kicking in
• Declining EPS (4.95 → 3.87 → 3.65) despite growing EBITDA indicates rising D&A / tax costs from capitalised assets — expected to reverse post full CWIP commissioning

Quarterly data not available in sufficient detail for NSE SME stocks — verify on Screener.in for Q4FY26 quarterly results.

A10

Valuations

Own history · Peer comparison · Premium / discount assessment

Valuation Summary

Metric	Current	Implied Value	Assessment
P/E (Trailing)	35.3x	CMP ₹129 / EPS ₹3.65	PREMIUM — SME growth premium priced in
Price/Revenue	5.9x	Mkt Cap ₹319 Cr / Rev ₹54 Cr	HIGH for manufacturing sector
EV/EBITDA (est.)	~21x	EV ~₹316 Cr / EBITDA ₹14.7 Cr	Premium vs Indian pharma peers
Price/Book (est.)	~4–5x	Mkt Cap / Est. Net Worth ₹65–80 Cr	Growth premium
Mkt Cap/CWIP+Fixed Assets	~5–6x	₹319 Cr / ~₹55–65 Cr gross block	High replacement value multiple

Listed Peer Comparison

Company	Mkt Cap	P/E	ROCE%	Rev CAGR 3yr	Notes
Yash Optics & Lens (YASHOPTICS)	₹319 Cr	35.3x	12.84%	~37%	NSE SME; high growth, high inventory
GKB Ophthalmics	~₹40 Cr	~20x	~12%	~8%	BSE SME; smaller, diversified optical
Lenstec Optics (unlisted)	N/A	N/A	N/A	N/A	Largest domestic, unlisted
Indian optical sector avg.	—	~25–30x	~14%	~10–15%	Based on comparable niche mfg. SMEs

Comparable listed peers are limited for this niche. Valuation is primarily driven by growth narrative and capacity expansion potential.

A11

Orders & Revenue Visibility

Distribution-based model — order book not applicable

Note: Yash Optics operates on a distribution-pull model, not a project/contract-based order book. Revenue is generated through ongoing distributor relationships and retail sell-through, not discrete large orders. Therefore, traditional order book / Book-to-Bill metrics do not apply.

Revenue Visibility Factors

• Long-standing distributor relationships provide implied demand visibility
• High inventory (483 days) suggests channel is stocked for 12–16 months ahead
• New capacity (CWIP) will be the key revenue unlock trigger in FY27
• Key question: Can demand absorb doubled capacity post-commissioning?

Channel Health Indicators

• ✅ Revenue +24.95% YoY suggests distributor offtake is healthy
• 🔴 Inventory Days 483 may indicate channel stocking or slow-moving SKUs
• Clarification needed: Is inventory at company level or at distributor level?
• Monitor: Month-on-month offtake trends from management guidance

A12

Track Record & Management Quality

Promoter background · Capital allocation · Walk vs Talk

Management — Key Observations

Promoter Family (73.2% stake): High ownership alignment; founder-led company with multi-decade optics industry experience. IPO in 2023 with clear stated purpose (Vapi expansion) — CWIP on balance sheet confirms capital deployment per prospectus.

Track Record: Revenue grew from ₹15 Cr to ₹54 Cr in 5 years (+37% CAGR) — indicates operational execution capability. No major governance concerns in public disclosures.

Red Flag Watch: Inventory Days 483 has not been addressed in available management commentary — this must be explained and resolved.

Walk vs Talk Scorecard

IPO Promise: Use proceeds for Vapi expansion → KEPT (CWIP ₹22.38 Cr on books)

Revenue Guidance: Insufficient historical concall data for NSE SME to build full scorecard

Inventory Management: High inventory Days signals possible operational inefficiency or channel stuffing — management clarity needed

Guidance accuracy score cannot be computed; verify via BSE concall transcripts

Year	Capex (₹ Cr)	ROCE (%)	Dividend	Assessment
FY24	IPO + plant capex	~18%	Not known	Strong returns pre-expansion
FY25	Expansion in progress	~15%	Not known	CWIP drag beginning
FY26	CWIP ₹22.38 Cr	12.84%	Not known	Pre-commissioning trough

A13

Issues & Risks

Key risks assessed — HIGH to LOW priority

HIGH

Inventory Days 483 (Critical)

Cash conversion cycle of 471 days is well above industry norms. Could indicate slow-moving inventory, channel stuffing, or accounting irregularity. Ties up massive working capital (~₹30–35 Cr in stock).

Mitigant: Track quarterly inventory levels vs revenue; seek management explanation; monitor write-off risk.

HIGH

SME Scale vs Competition

Revenue of ₹54 Cr is tiny vs global optical leaders. Chinese lens imports (Nikon, Zeiss sourced from China) can undercut domestic players on price. Any removal of import protection could hurt significantly.

Mitigant: Domestic BIS compliance requirement; quick-replenishment advantage; service quality.

HIGH

CWIP Execution Risk

₹22.38 Cr CWIP represents 70% of annual revenues. If commissioning is delayed or demand doesn’t materialise post-commissioning, ROCE could remain compressed and working capital further strained.

Mitigant: Monitor quarterly CWIP movement; commissioning announcement; post-commissioning revenue ramp.

MEDIUM

NSE SME Liquidity Constraint

NSE SME stocks have low daily trading volumes and wide bid-ask spreads. Institutional participation is absent. Position building and exits require significant time, increasing execution risk.

Mitigant: Size position proportionally; avoid large allocations in illiquid SME names.

MEDIUM

EPS Compression Trend

EPS has declined from ₹4.95 (FY24) to ₹3.65 (FY26) despite revenue growing. PAT margin compression from ~28% to ~17% suggests rising D&A and tax outflows. This trend is concerning if CWIP commissioning doesn’t reverse it.

Mitigant: CWIP commissioning should reduce capex drag; revenue scaling should improve operating leverage.

MEDIUM

Customer / Distributor Concentration

If a small number of distributors account for a large share of revenue, any disruption to key relationships could materially impact quarterly numbers. Not disclosed — warrants verification.

Mitigant: Diversify distribution; expand to Tier 2/3 cities as stated strategy.

LOW

Raw Material (Monomer) Price Risk

CR-39 and PC monomers are petrochemical derivatives imported primarily from Japan and Korea. USD/INR fluctuations and global monomer supply disruptions could pressure input costs and margins.

Mitigant: Domestic pricing power to pass through input costs; moderate margin buffer at 27.3% EBITDA.

LOW

Mainboard Migration Timeline

SME listing limits institutional participation and analyst coverage. Mainboard migration would significantly expand the investor base but requires meeting SEBI criteria. Timeline uncertain.

Mitigant: Not time-critical; company growing into mainboard eligibility naturally with revenue & profitability.

A14

Key Milestones & Metrics to Watch

Research tracking signals — NOT investment signals

Vapi Plant Commissioning

🔎 Watch For: CWIP drops to <₹5 Cr; new plant revenue contribution in quarterly results

📅 Expected: Q2–Q3 FY27 (Oct–Dec 2026)

Critical capacity unlock — determines FY27–28 revenue trajectory

Inventory Days Normalisation

🔎 Watch For: Quarterly inventory days declining below 300; CFO > PAT confirmed

📅 Expected: FY27 (if management addresses this)

Validates thesis integrity; high inventory is the key debate point

Revenue Breakout to ₹80+ Cr

🔎 Watch For: FY27 annual revenue announcement in BSE filings; quarterly run-rate ₹20+ Cr

📅 Expected: FY27 (if expansion commissions H1 FY27)

Demonstrates demand absorbing new capacity; de-risks CWIP investment

ROCE Recovery to 15%+

🔎 Watch For: Quarterly ROCE (annualised) crossing 15%; D&A stabilising post-capitalisation

📅 Expected: FY27–FY28

Confirms capital efficiency of the expansion; valuation re-rating potential

EPS Re-acceleration to ₹5+

🔎 Watch For: Annual EPS > ₹5.00 in FY27 or FY28 filings; would reduce P/E below 26x at CMP

📅 Expected: FY28 (conservative) / FY27 (bull case)

Most important valuation catalyst; compresses P/E and justifies current premium

Institutional Coverage Initiation

🔎 Watch For: Any SEBI-registered research report from an institutional broker; mainboard migration announcement

📅 Expected: When revenue crosses ₹100 Cr and profitability stabilises

Valuation re-rating catalyst; expands eligible investor universe dramatically

⚠ RESEARCH TRACKING MILESTONES — NOT INVESTMENT SIGNALS

A15

Ownership — Promoter / FII / DII Pattern

Shareholding structure · Smart money movements

Shareholding Pattern (Latest Available)

Promoter & Promoter Group73.2%

73.2%

26.8%

Public / Retail26.8%

FII: Negligible (NSE SME)
DII / Mutual Funds: Negligible (SME ineligible for most schemes)
Total Shares: 2.477 Cr (₹10 FV)

Smart Money Assessment

NSE SME Context: Institutional smart money (FIIs, domestic MFs) cannot meaningfully participate in NSE SME stocks due to regulatory and AUM constraints.

Signal: High promoter stake (73.2%) is the primary positive ownership signal — promoters have significant financial skin in the game.

Watch: Any reduction in promoter stake below 70% (via secondary sales) would be a negative signal. Pledging of promoter shares (currently none disclosed) would escalate risk meaningfully.

PART B

Technical Analysis

Stage · Momentum · Key Levels · Trend & Relative Strength · R:R

📈 TradingView — YASHOPTICS Weekly Chart (Dark Mode Layout) · Primaegis Research

Weekly Signal

BUY

MA Signal: 0.77 (Bullish)
Oscillators: 0.18 (Neutral)

Bullish bias on weekly

Daily Signal

NEUTRAL

Mixed signals on daily
Low volume SME

No strong directional bias

Stage Analysis

Stage 2

Rising trend from base
Below ATH (₹153.50)

Setup: Pullback within uptrend
Entry on dips near support

Relative Strength

Moderate+

vs Nifty 500
SME index outperformer

NSE SME stocks often
outperform in bull phases

B2 — Key Price Levels

Level Type	Price (₹)	Significance
52-Week High / ATH	153.50	Primary resistance; breakout above = strong bull signal
Key Resistance	140–145	Previous consolidation zone; overhead supply
CMP	129	Current market price — near midpoint of 52W range
Key Support 1	115–118	Prior base; 50-week MA zone (estimated)
Key Support 2 / Stop	100–105	Strong demand zone; below = thesis re-evaluation
52-Week Low	77.70	Extreme downside if thesis breaks; not a stop

B5 — Risk:Reward Analysis

Scenario	Entry (₹)	Target (₹)	Stop (₹)	R:R	Catalyst
BULL — Aggressive	125–130	175–185	105	~2.5–3.0x	Vapi commissioning + inventory normalisation
BASE — Moderate	125–130	155–165	108	~1.5–2.0x	Revenue ₹80 Cr in FY27; ROCE improvement
CONSERVATIVE	<120 (on dip)	145–150	105	~1.5x	Near ATH retest; existing momentum continuation

⚠ NSE SME stocks have wider spreads and lower liquidity — execution at listed prices may differ. R:R calculations are for research framing only.

📈 LIVE TradingView Chart — NSE:YASHOPTICS (Interactive)

📊 TradingView — YASHOPTICS Fundamentals Layout · Primaegis Research

PART C

⚡ Consolidated VIEW Thesis

Primaegis Research Internal Analyst Opinion · May 2026

Investment Thesis Summary — YASHOPTICS

Yash Optics & Lens Ltd is a sub-₹400 Cr NSE SME-listed ophthalmic lens manufacturer riding two powerful secular trends: India’s rapidly growing myopia burden and the premiumisation of prescription eyewear. The company has grown revenues at 37% CAGR over FY22–FY26, expanded EBITDA margins to 27.3%, and maintains a near debt-free balance sheet — all positives.

The critical debate is the Inventory Days of 483 (CCC: 471 days), which is anomalously high and demands management explanation. If this represents channel-building ahead of new capacity, it is strategically justifiable; if it reflects slow-moving or excess inventory, it is a working capital and earnings quality risk.

The Vapi expansion (CWIP ₹22.38 Cr) is the primary catalyst. Commissioning in FY27 should unlock ₹80–100 Cr revenue potential and allow EPS to re-accelerate from its current ₹3.65 trough toward ₹5+ over FY27–28, which would compress P/E from 35x to ~25x — a re-rating opportunity.

Technical picture (Weekly: BUY, Stage 2 uptrend) is constructive. CMP ₹129 offers reasonable entry for a 3–12 month position with R:R of ~2–3x if expansion thesis plays out. Key stop: ₹105. Position sizing must reflect SME illiquidity.

Scenario Analysis — 1-Year Price Targets

🔴 BEAR CASE (20% probability)

₹85–95

Triggers: Vapi expansion delayed beyond FY27; Inventory Days worsen; margin compression due to input costs; ROCE stays below 10%

Valuation basis: P/E ~24x on EPS ₹3.50 (compressed margins)

🟢 BASE CASE (55% probability)

₹155–175

Triggers: Vapi commissions Q2-3 FY27; Revenue ₹80+ Cr FY27; Inventory Days normalise to 300; EPS ₹4.50–5.00

Valuation basis: P/E ~32–35x on EPS ₹4.80 (FY27E)

🔴 BULL CASE (25% probability)

₹200–240

Triggers: Rapid capacity ramp; Premium lens mix shift (high-index, digital); Export orders; Mainboard migration signal; EPS ₹6–7

Valuation basis: P/E ~33–35x on EPS ₹6.50 (FY28E premium)

PRIMAEGIS RESEARCH OPINION · INTERNAL ANALYST VIEW · NOT SEBI-REGULATED

ACCUMULATE

Conviction: MEDIUM

Horizon: 3–12 Months

Risk Profile: MEDIUM-HIGH (SME)

⬆ UPGRADE TO BUY if:

→ Vapi plant commissioning confirmed + revenue run-rate ₹20+ Cr/quarter by Dec 2026
→ Inventory Days decline below 300 in any reported quarter (FY27)
→ EPS guidance ₹5+ for FY27 announced by management

⬇ DOWNGRADE TO REDUCE if:

→ Inventory Days cross 600 or no management explanation by Q2FY27
→ Vapi commissioning delayed beyond March 2027
→ PAT margin falls below 12% for two consecutive quarters

Rationale: Good thesis intact (India optical growth + capacity expansion) but Inventory Days 483 is unresolved and EPS is declining. ACCUMULATE on dips below ₹120; build full position only when Vapi commissioning confirmed. Not suitable for aggressive allocation until inventory clarity emerges.

Rating Scale

STRONG BUY

BUY

► ACCUMULATE

NEUTRAL

REDUCE

SELL

STRONG SELL

⚠ INTERNAL UNREGULATED ANALYTICAL OPINION — NOT SEBI-REGULATED INVESTMENT ADVICE. Neither Ameya Pimpalgaonkar nor any contributor to this report is a SEBI registered investment advisor or research analyst. Nothing in this report constitutes a recommendation to buy, sell, or hold any security. This is for research and educational purposes only.

⚠ Research Disclaimer & SEBI Compliance

This report is produced by Primaegis Research as an internal analytical exercise. Neither Ameya Pimpalgaonkar nor any contributor to this report is a SEBI-registered investment advisor or research analyst. This report does not constitute a SEBI-regulated research report under the SEBI (Research Analysts) Regulations, 2014.

Nothing contained herein constitutes investment advice, a recommendation to buy or sell any security, or an offer or solicitation to deal in securities. Past performance is not indicative of future results. Investing involves significant risk including possible loss of principal. NSE SME stocks carry additional risks including low liquidity, wider spreads, and limited regulatory oversight compared to mainboard listings.

All data is sourced from publicly available information including Screener.in, BSE/NSE filings, TradingView, and web-accessible company disclosures. Figures marked with * are estimates. Verify all data independently before making any financial decision.

Report Date: May 28, 2026 · CMP at report date: ₹129 · Primaegis Research · Internal Research Pipeline v2.0