Motilal Oswal has initiated coverage on Laxmi Dental with a ‘Buy’ rating. The brokerage has a price target of Rs 540, implying an upside of 26% from the current market price. Laxmi Dental has and advantage of being India’s only fully integrated provider of dental solutions. Here are three reasons why Motilal Oswal initiated coverage on Laxmi Dental: 

Motilal Oswal on Laxmi Dental: Unique and integrated market position

Motilal Oswal highlighted that Laxmi Dental is India’s only fully integrated provider of dental solutions. It offers three high-growth segments: custom labs, aligner solutions, and pediatric dental products. This integrated approach provides a strong competitive advantage for sustainable growth. Significantly, Motilal Oswal notes that there are no direct listed competitors for Laxmi Dental, underscoring its unique market standing.

Motilal Oswal on Laxmi Dental: Strong growth trajectory 

The company has performed well in terms of financial performance over the past three years. Its revenue surged to Rs 240 crore in FY25 from Rs 140 crore in FY22, and a recovery to a net profit of Rs 26.2 crore in FY25 from a loss in FY22. 

Motilal Oswal expects substantial future growth, estimating a CAGR growth for revenue of 24%, EBITDA of 48%, and net profit of 62% during FY25-27. 

This robust growth potential, supported by a customised and scalable business model, is a primary driver for the ‘Buy’ rating, said Motilal Oswal.

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Motilal Oswal on Laxmi Dental: Digital edge, strong distribution network, and favourable industry tailwinds 

  1. Digital edge: Laxmi Dental is well-positioned due to its digital edge, having made early investments in digital dentistry and deployed over 600 intraoral scanners (IOS) in India, said the brokerage house.
  1. Strong distribution network: It has an extensive B2B and B2C network covering over 22,000 dental clinics and dentists across 320 cities, and exports products to more than 90 countries. 
  1. Favourable industry tailwinds: The company is set to benefit from significant industry tailwinds, including a shift towards premium metal-free products, increasing adoption of digital dentistry, and a growing trend of US labs outsourcing work to India.