Nuvama has initiated coverage on the stock with a ‘buy’ rating and a target price of ₹570 per share. This suggests a potential 40% gain from Tuesday’s closing price of ₹413.95.
Notably, this is the first ‘buy’ recommendation for the stock since its listing.
Why Nuvama is Bullish on Laxmi Dental
Nuvama highlights that Laxmi Dental is India’s only fully integrated dental product company. It specializes in customized crowns, bridges, aligners, and pediatric dental products.
The company is the second-largest domestic dental lab, generating 68% of its revenue, and has a strong network of over 22,000 dental professionals.
Additionally, it is India’s largest dental product exporter.
The brokerage firm believes Laxmi Dental is well-positioned for growth due to its broad product range, cost advantages, and favorable industry trends.
Growing demand for aesthetic dentistry, digital solutions, and rising disposable incomes further support its expansion.
Nuvama expects Laxmi Dental’s revenue to grow at a CAGR of 26%, with adjusted profit after tax (PAT) rising by 59%.
The company’s return on capital employed (RoCE) is also projected to improve from 19% to 29% between FY25E and FY28E.
Strong Performance Since IPO
Based in Mumbai, Laxmi Dental was listed on January 20, 2025, at an offer price of ₹428. Over the past month, the stock has gained 30%.
The company’s 52-week high is ₹583.70, while its lowest price in the past year was ₹312.95. Currently, its market capitalization stands at ₹2,318.30 crore.
