Synopsis:
Laxmi Dental shares jumped 10% after Motilal Oswal initiated coverage with a Rs 540 target, citing strong growth across custom labs, clear aligners, and paediatric dental products. In its bull case, the brokerage sees a 68% upside with a Rs 750 target.
The shares of a newly listed dental products company, operating across custom labs, clear aligners, and paediatric dental solutions, surged up to 10% after Motilal Oswal projected a potential 68% upside in its bull case.
With a market capitalisation of Rs 2,451 Crores, the share price of Laxmi Dental jumped over 10% on Monday to hit an intraday high of Rs 469.00 per share from Friday’s closing price of Rs 427.80 per share.
What’s the News
Motilal Oswal initiated coverage on Laxmi Dental with a “buy” rating and a base case target price of Rs 540 per share, implying a 21% upside from Monday’s close. In its bull case, the brokerage sees the stock hitting Rs 750, suggesting a potential 68% upside.
The brokerage highlighted that Laxmi Dental operates on three strong growth engines: custom labs (62% of revenue), clear aligners (only Indian player with USFDA approval), and paediatric dental products like SDF and Bioflx crowns. Each segment is expected to grow at a CAGR of 21%–33% over FY25–27.
It noted Laxmi Dental’s unique position as India’s only fully integrated dental platform with B2B2C reach across 22,000+ clinics and exports to over 90 countries. The company’s early adoption of digital dentistry and intra-oral scanners further strengthens its leadership.
Motilal Oswal expects the company to deliver a 24% CAGR in revenue, 48% in EBITDA, and 62% in PAT over FY25–27. It has valued the stock at 43x one-year forward P/E.
Key risks: According to the brokerage, these include delays in global product approvals, slower tech adoption across the dental industry, weaker dentist coverage expansion, and the risk of substitute products replacing crowns/bridges.
About the Company
Laxmi Dental Limited, founded in 2004 by Rajesh Khakhar, is one of India’s leading dental products companies. Starting as a small dental lab in Mumbai, the company has grown into a fully integrated dental platform with a global presence.
Under the leadership of CEO Sameer Merchant, Laxmi Dental has embraced digital dentistry and launched innovative products like Illusion Aligners. Today, it has over 2,300 employees, six manufacturing units, and exports to 95+ countries.
It is the second-largest player in India’s dental lab business and the top exporter, supported by a network of over 22,000 clinics. With a wide range of branded products, strong digital capabilities, and strict quality standards, Laxmi Dental is well-positioned to lead in the dental care industry
The company reported a revenue of Rs 239 crore in FY25, up by 23.2 percent from its FY24 revenue of Rs 194 crore. Coming to its profitability, the company reported a net profit rise of 28 percent to Rs 32 crore in FY25 from Rs 25 crore in FY24. The stock delivered an ROE and ROCE of 22.5 percent and 18.7 percent, respectively.
Written By: Rohan Pandey
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