Nuvama Institutional Equities has initiated coverage on Laxmi Dental Technologies with a bullish ‘BUY’ rating and a target price of ₹570, citing the company’s dominant positioning in India’s underpenetrated dental care segment and multiple long-term growth levers.
Laxmi, already the largest player in the Indian dental segment with a footprint ~5x that of the third-largest competitor, offers an end-to-end integrated portfolio across dental labs, aligners, and pediatric dental solutions. Despite its dominance, Nuvama believes the company has barely scratched the surface in terms of market share, given the highly fragmented and underserved nature of India’s dental ecosystem.
One of the key drivers of future growth is Laxmi’s lab business, which is capitalizing on the industry shift toward metal-free crowns and digital impressions. The company’s branded high-margin crown offering, Illusion Zirconia, and its iScan Pro scanner have already made significant inroads — digital impressions now account for 62% of volumes in H1FY25, up from 28% in FY22. Nuvama estimates this segment will grow revenues at a 20% CAGR and see margins expand by over 925 basis points to reach 22% gross margin by FY28.
In the fast-growing clear aligners segment, Laxmi is well-positioned to benefit from rising adoption of aesthetic dentistry and its scalable B2B2C model. The broker expects the aligner business to grow at a whopping 39% CAGR over FY25E–28E, bolstered by market trends, increasing disposable incomes, and global regulatory clearances like 510(k) in the U.S.
Another emerging growth driver is Kids-e-Dental, Laxmi’s exclusive pediatric dental brand. The company remains the only Indian player offering a dedicated kids-focused product suite and is now expanding globally with international registrations underway. Nuvama expects Kids-e-Dental revenues to more than double over FY24–28E.
“With the balance sheet turning healthy post-IPO and capex plans well in place, Laxmi is well-positioned to ride the sector tailwinds,” Nuvama stated in its report. It values the company at 40x FY27E EPS, which is at a 25% discount to peers like Poly Medicure and China’s Angelalign, reflecting Laxmi’s smaller scale and shorter operating history. The brokerage also notes that its discounted cash flow model supports the ₹570 target price.
Key risks include slower-than-expected ramp-up in the aligner segment, geographic concentration, and the ongoing CBI case involving the company.
Founded to address the growing demand for dental care solutions in India, Laxmi Dental Technologies operates across three core verticals — dental labs, clear aligners, and pediatric dental care. The company has built a network of over 22,000 dental practitioners and has expanded its reach into global markets, with a clear focus on innovation, digital transformation, and high-margin branded products.
