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Motilal Oswal expects 75% upside for this newly listed stock as part of its 'bull case'Laxmi Dental operates on three growth engines -- custom labs, which make up 62% of its revenue; clear aligners, the only Indian player with USFDA approval and paediatric dental products such as SDF, Bioflx crowns -- each offering strong growth potential with expected compound annual growth rates (CAGRs) of 21%-33% over FY25-27.By Shloka Badkar   July 14, 2025, 9:45:49 AM IST (Published)2 Min ReadShares of Laxmi Dental Ltd. gained close to 2% on Monday, July 14, after brokerage firm Motilal Oswal Financial Services initiated coverage on the stock.

The brokerage initiated coverage with a "buy" rating on Laxmi Dental and a price target of ₹540 per share, which implies a 26% potential upside from the previous closing price of ₹427 apiece. The price target is also near the stock's listing price of ₹542 apiece on the NSE.

Motilal Oswal said the company is a unique India's only fully-integrated dental platform with strong B2B2C reach across over 22,000 clinics and exports to more than 90 countries. Its tech-led model and early adoption of digital dentistry, intra-oral scanners, support leadership in the space, it added.

The brokerage stated Laxmi Dental operates on three growth engines -- custom labs, which make up 62% of its revenue; clear aligners, the only Indian player with USFDA approval and paediatric dental products such as SDF, Bioflx crowns -- each offering strong growth potential with expected compound annual growth rates (CAGRs) of 21%-33% over FY25-27.

Laxmi Dental has witnessed a strong financial trajectory, as per Motilal Oswal. Its revenue, earnings before interest taxes depreciation and amortisation (EBITDA) and profit after tax (PAT) grew sharply in the financial year 2025 to ₹240 crore, ₹42 crore and ₹26.2 crore, respectively. The company is expected to deliver a 24%, 48% and 62% CAGR in revenue, EBITDA and PAT by FY27, respectively, the brokerage said.

Motilal Oswal has valued the stock at 43 times its one-year forward price-to-earnings ratio. In its bull case scenario, the brokerage has a price target of ₹750 per share, which implies a potential upside of 75% from Friday's close.

Here are the key risks as per the brokerage:

Delay in receipt of approvals to launch or register products in international geographies may affect revenue prospects.

Slower adoption of technological development at the industry-level may adversely affect the positioning of Laxmi Dental from a competition perspective.

A slower scale-up of dentist coverage would reduce the growth pace of its domestic lab business.

Better dental solutions substituting crowns/bridges may affect overall demand and consequently, the business prospects of Laxmi Dental.

All three analysts that have coverage on the stock have a "buy" rating on it.

Laxmi Dental shares gained 1.81% at ₹436.99 apiece. The stock has declined 22.44% in the last six months.

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