Laxmi Dental share price rises 3%; Motilal Oswal initiates 'Buy'; check TP

Laxmi Dental shares rose 3.2 per cent in trade, logging an intraday high at ₹441.6 per share on BSE after Motila Oswal initiated coverage with 'Buy'

Laxmi Dental share price rose 3.2 per cent in trade on Monday, logging an intraday high at ₹441.6 per share on BSE. At 9:27 AM, Laxmi Dental shares were trading higher by 2.2 per cent at ₹437.2 per share on the BSE. In comparison, the BSE Sensex was down 0.16 per cent at 82,369.42. The company's market capitalisation stood at ₹2,372.72 crore. 

 

The 52-week high of the stock was at ₹583.7 per share and the 52-week low of the stock was at ₹307.55 per share. 

Motilal Oswal initiates 'Buy' 

From the previous close at ₹427.8 per share, domestic brokerage Motilal Oswal sees a 26 per cent upside. The brokerage has initiated a 'Buy' and setting the target price at ₹540 per share. The brokerage cites supportive industry trends and the company’s strong potential for sustained growth, assigning a 43x 12-month forward earnings multiple.

Why is Motilal Oswal upbeat on Laxmi Dental?

Over FY22–25, Laxmi Dental's revenue grew from ₹140 crore to ₹240 crore, while Earnings before interest, tax, depreciation and amortisation (Ebitda) margins expanded from 4 per cent to 17.5 per cent. Net profit for FY25 stood at ₹262 crore, recovering from a loss in FY22. 

 

Motilal Oswal projects a 24 per cent revenue compound annual growth rate (CAGR), 48 per cent Ebitda CAGR, and 62 per cent profit after tax (PAT) CAGR over FY25–27, driven by strong traction across its three core verticals—custom labs, clear aligners, and pediatric dental products.  Track Stock Market LIVE Updates

Segment-wise growth 

Lab business:

The lab segment contributes 62 per cent of the company's total revenue. Motilal expects this vertical to grow at a 21 per cent CAGR through FY27, driven by rising adoption of digital dentistry, a shift towards premium metal-free crowns, and outsourcing by US-based dental labs to India.

 

Clear aligners: 

Laxmi Dental is the only aligner company in India that is fully vertically integrated, having end-to-end capabilities from raw material to distribution. Further, the company's launch of clear aligners under the brand ‘Illusion Aligners’, was the first Indian brand to receive 510(k) clearance from the United States Food and Drugs Administration (US FDA) in CY21 to market clear aligners. This segment is forecasted to grow at a 33 per cent CAGR, reaching ₹140 crore in revenue by FY27.

 

Pediatric dental products:

Motilal Oswal projects this niche segment to grow a 31 per cent CAGR, reaching ₹44.9 crore by FY27. As Laxmi Dental is India’s only manufacturer of US FDA-cleared Silver Diamine Fluoride (SDF) and developer of the patented Bioflx zirconia crowns, the company is expected to benefit from the segment growth.

Laxmi Dental listing

The stock listed on bourses on January 20, 2025. On the National Stock Exchange (NSE), Laxmi Dental IPO listing price was ₹542 per share, reflecting a listing gain of 26.6 per cent or ₹114, as against the issue price of ₹428.

 

Similarly, on the BSE, Laxmi Dental shares listed at ₹528 apiece, commanding a premium of 23.3 per cent or ₹100, as compared to its initial public offering (IPO) issue price.