Laxmi Dental share price advances 5% as Nuvama initiates with 'Buy' rating

Laxmi Dental share price: Recently-listed dental products company Laxmi Dental share price was in demand on Wednesday, March 26, 2025, as the stock zoomed as much as 5.08 per cent to hit an intraday high of Rs 435 per share. 

 

However, at 11:00 AM, Laxmi Dental shares were off highs and were trading 2.15 per cent higher at Rs 422.85. In comparison, BSE Sensex was trading 0.11 per cent lower at 77,930.05 levels.

 

The northward move in the Laxmi Dental share price came after domestic brokerage Nuvama initiated coverage on the stock with a ‘Buy’ rating. The brokerage has set a target price of Rs 570, which reflects an upside of 37.69 per cent from its previous close (March 25) of Rs 413.95. 

 

 

“We believe Laxmi Dental is poised to capture a meaningful share of the pie given its wide portfolio and scale aided by tailwinds such as preference for aesthetics, digitalisation and rising income. We forecast a revenue/adjusted profit after tax (PAT) compound annual growth rate (CAGR) of about 26 per cent/59 per cent with return on capital employed (RoCE) rising from 19 per cent to about 29 per cent over FY25E–28E. Initiate at ‘Buy’ with target price (TP) of Rs 570,” said Aashita Jain, Shrikant Akolkar, Gaurav Lakhotia of Nuvama, in a note.

 

Analysts highlighted that India has a high oral disease burden, but remains an underpenetrated and fragmented dental care market with organised market share in a mere single digit. 

 

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Given this, here are the top reasons for initiating coverage on Laxmi Dental

 

Comprehensive and integrated leader in an expanding market

 

With an extensive portfolio of products and a robust network of over 22,000 dental professionals, Laxmi Dental stands out as the ideal choice to tap into the rapidly growing and underserved dental care market, according to Nuvama. 

 

The company is approximately five times larger than the third-largest player in the domestic market, yet it has just begun to capture its potential in terms of market share, analysts highlighted.

 

Shift to metal-free products, digitalisation driving lab biz growth

 

Nuvama analysts said that the rising preference for metal-free crowns due to their durability and aesthetic benefits positions Laxmi Dental’s high-margin ‘Illusion Zirconia’ as a key player in this shift. 

 

Additionally, the transition from physical to digital impressions is accelerating, with Laxmi Dental’s ‘iScan Pro’ scanner playing a major role in this change (digital units contributed 28 per cent in FY22, growing to 62 per cent in H1FY25).   ALSO READ | Waaree Renewable Tech shares jump 5% on ₹232 crore LoA from parent

 

The digitalisation, analysts believe, is resulting in faster turnaround times, lower logistics costs, and reduced rework. Also, the company’s efforts to target US-based Dental Service Organisations (DSOs) are expected to further fuel export growth. 

 

As a result, Laxmi Dental’s lab business revenues are projected to grow at a about 20 per cent CAGR, with margins expanding by approximately 925 basis points (bps) to approximately 22 per cent (on a gross basis) by FY28E.

 

Aligners: Nascent but thriving segment

 

The aligners segment, experiencing rapid adoption, is expected to grow at a robust about 39 per cent CAGR over FY25E–28E, supported by trends such as increased focus on aesthetics, higher disposable incomes, 510(k) clearance, and a sustainable B2B2C ‘pay-as-you-go’ model. 

 

Moreover, Kids-e-Dental, Laxmi Dental’s exclusive brand for pediatric dental products, stands out as a key growth driver, analysts at Nuvama said.   ALSO READ | NTPC, Power Grid get new 'overweight' from JPMorgan on rising demand growth

 

As the only Indian brand offering such specialised products, and with global expansion plans underway, analysts believe, Kids-e-Dental’s sales are set to more than double between FY24 and FY28E.