Laxmi Dental Limited’s shares are in focus today, Wednesday, as they surged over 5%, reaching an intraday high of ₹435. The reason behind this rise is a positive report from global brokerage firm Nuvama Institutional Equities.
The firm has initiated coverage on the stock with a ‘buy’ rating and set a target price of ₹570 per share.
This indicates a potential 40% increase from Tuesday’s closing price of ₹413.95. Notably, this is the first ‘buy’ recommendation the stock has received since its listing.
Why Is Nuvama Bullish on Laxmi Dental?
According to Nuvama, Laxmi Dental is India’s only fully integrated dental product company. It specializes in customized crowns, bridges, aligner solutions, and pediatric dental products.
The company is the second-largest domestic dental lab, contributing 68% of its revenue, and has a strong network of over 22,000 dental professionals. Additionally, it is India’s largest exporter in the dental sector.
Nuvama believes that Laxmi Dental is well-positioned to expand in the growing dental market. Factors like its wide product range, economies of scale,
and industry trends—such as increasing demand for aesthetic dentistry, digital solutions, and rising disposable incomes—support its growth.
The brokerage firm expects the company’s revenue to grow at a CAGR of 26%, while adjusted profit after tax (PAT) is expected to rise at 59%.
Furthermore, the company’s return on capital employed (RoCE) is projected to improve from 19% to 29% between FY25E and FY28E.
Strong Performance Since IPO
Laxmi Dental, based in Mumbai, began trading on January 20, 2025, at an offer price of ₹428. Over the last month, the stock has risen by 30%.
The company’s 52-week high stands at ₹583.70, while its lowest price in the past year was ₹312.95. Currently, its market capitalization is ₹2,318.30 crore.