The shares of this newly listed integrated dental products company came into focus after Nuvama initiated coverage with an upside potential of 28 percent.
Stock Performance
With a market capitalization of Rs 2,440.59 crore, Laxmi Dental Ltd fell 3 percent in Tuesday’s trading session to an intraday low of Rs 432.65 per share compared to its previous closing price of Rs 444.05 per share. The shares retraced and were trading at Rs 440.55, marking a slight fall from the previous close.
Brokerage View
Nuvama Institutional Equities has initiated coverage on Laxmi Dental with a target price of Rs 570 per share, indicating a 28 percent upside from the previous closing price.
Rationale
Laxmi Dental, India’s only fully integrated dental products company, is poised for strong growth in India’s underpenetrated dental care market, where the organized sector holds a minimal share. It is India’s second-largest domestic dental lab, generating 68 percent of its revenue and serving a network of over 22,000 dental professionals. It is also the country’s largest exporter in this segment.
The company is capitalizing on the rising demand for metal-free crowns with its high-margin ‘Illusion Zirconia’ brand. The aligners segment is expected to grow at a 39 percent CAGR from FY25E to FY28E, driven by increasing aesthetic awareness, rising incomes, regulatory approvals, and a ‘pay-as-you-go’ pricing model. Kids-e-Dental, an exclusive pediatric dental brand, is also a key growth driver.
Future Outlook
Nuvama projects strong growth, forecasting a 26 percent CAGR in revenue and a 59 percent CAGR in adjusted PAT. Meanwhile, RoCE is expected to rise from 19 percent to 29 percent over FY25E–28E. This would be driven by operating leverage, digital initiatives, and a shift toward branded products. Adjusted PAT is projected to surge nearly fourfold, growing at a 59 percent CAGR over the same period.
Company Overview
Laxmi Dental, an integrated dental products company with a comprehensive portfolio. Its offerings include custom-made crowns and bridges, branded dental products such as clear aligners, thermoforming sheets and aligner related products and paediatric dental products.
Financial Performance
As of December 2024, the company reported a 29 percent growth in revenue from Rs 47.79 crore in Q3 FY24 to Rs 61.67 in Q3 FY25. This was accompanied by a strong 105 percent increase in net profits from Rs 2.3 crore to Rs 4.8 crore during the same period.
Written by Shwetha Sairam
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
