Nuvama Institutional Equities has initiated coverage on Laxmi Dental with a ‘Buy’ rating. It sees an upside of 37%, and the target price is at Rs 570 for the stock price. The brokerage is betting on an underpenetrated and fragmented dental care market, which the company is likely to capitalise on.
Not just that, Nuvama believes that the company is likely to get help from preferred aesthetics, digitalisation, and rising income.
“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. We believe Laxmi 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,” said the brokerage in a research note.
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Aligners represent the fastest-growing segment in the dental care market in India as well as globally. “India’s prevalence of malocclusion (75%) surpasses that of the US (67%), yet the adoption of orthodontic treatment remains exceptionally low in India, with just 0.1% penetration versus 3% in the US. In India, metal-free crowns are gaining acceptance for their durability and aesthetic appeal. Laxmi is all set to capitalise on this shift with its branded high-margin ‘Illusion Zirconia’,” said Nuvama.
Nuvama on Laxmi Dental: Digitalisation to aid growth
The industry is moving from physical impressions to digital, with Laxmi’s ‘iScan Pro’ scanner capturing this shift (digital units contribution rose from 28% in FY22 to 62% in H1 FY25), yielding faster turnarounds along with reduced logistics and rework costs.
On a gross basis, “we reckon Laxmi’s lab business revenues shall grow at a 20% CAGR, with margin expanding 925 bps over FY25–28 to 22%,” said Nuvama.
Laxmi Dental IPO details
The company debuted in the secondary market in January 2025. The shares made a strong debut with a premium of 26.64%, listing at Rs 542 on the NSE over the issue price of Rs 428. Meanwhile, on BSE, it was listed at Rs 528, up 23.36% from its IPO price. The IPO was open for subscription from January 13 to January 15.
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