Laxmi Dental Technologies’ shares jumped 3% after Nuvama Institutional Equities initiated coverage with a bullish ‘BUY’ rating and a target price of ₹570. The brokerage highlights Laxmi’s stronghold in India’s underpenetrated dental market and its multiple growth levers.
As the largest player in India’s dental care segment—boasting a footprint nearly 5x larger than its third-largest competitor—Laxmi is primed for expansion. Nuvama sees significant upside as the company strengthens its presence across dental labs, aligners, and pediatric solutions.
One key driver is Laxmi’s lab business, benefiting from the shift toward metal-free crowns and digital impressions. Its flagship Illusion Zirconia crowns and iScan Pro scanners have driven digital impressions to 62% of total volumes in H1FY25, up from 28% in FY22. This segment is projected to grow at a 20% CAGR, with margins expanding by 925 basis points to 22% by FY28.
The clear aligners segment is another major growth catalyst, expected to grow at a 39% CAGR through FY28E, driven by rising demand for aesthetic dentistry and a scalable B2B2C model. Additionally, Laxmi’s Kids-e-Dental—India’s first pediatric dental brand—is expanding globally, with revenues expected to more than double by FY28.
With a healthy post-IPO balance sheet and well-planned capex, Laxmi Dental is well-positioned for long-term growth. Nuvama values the stock at 40x FY27E EPS, a 25% discount to peers like Poly Medicure and China’s Angelalign.
Laxmi Dental shares opened at ₹422.00 on Wednesday, touching an intraday high of ₹435.00 while maintaining a low of ₹422.00. The stock remains significantly below its 52-week high of ₹584.00 but well above its 52-week low of ₹313.20.
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