At a Glance:
Vasa Denticity runs DentalKart.com, India’s go-to e-commerce platform for dental supplies with 20,000+ SKUs and 30 house brands. FY25 sales hit ₹249 Cr, and they’ve set foot in London too. But stock is down from ₹840 to ₹614. Why? Let’s drill in.
🧠 1. What They Actually Do
- 🛒 Runs a full-stack B2B e-commerce marketplace for dental professionals
- 🧪 Portfolio includes orthodontics, endodontics, surgical kits, consumables, lab gear, and even cosmetic/aesthetic tools
- 🦷 300+ domestic + global brand tie-ups, including 30 own labels
- 🚚 Recent logistics and SmileWorks lab expansions
- 🌍 Opened UK subsidiary (Dentalkart Distribution UK) in June 2025
🪥 TL;DR: They don’t clean your teeth. They sell the things that do — to thousands of dentists, clinics, and hospitals.
💸 2. Financial Pulse Check – Strong Growth, Soft Margins
| FY | Revenue (₹ Cr) | Net Profit (₹ Cr) | OPM | ROE | ROCE |
|---|---|---|---|---|---|
| FY20 | ₹30 | – | 1% | – | – |
| FY23 | ₹123 | ₹8 | 8% | 26% | 80% |
| FY24 | ₹170 | ₹15 | 11% | 17% | 45% |
| FY25 | ₹249 | ₹17 | 9% | 17% | 23% |
📈 CAGR over 5 Years:
- Sales: 52%
- Profits: 🔥 186%
- FY25 EPS: ₹10.28
👀 Profit growth is tapering (FY25 EPS up just ~9%) despite topline surging 45%
🧮 3. Valuation – Not For the Weak of Teeth
- CMP: ₹614
- EPS (TTM): ₹10.28
- P/E: 59.8x
- Book Value: ₹79.8 → P/BV: 7.7x
- Market Cap: ₹1,021 Cr
🧠 Valuation vs Peers:
- Laxmi Dental: P/E 87x
- Poly Medicure: P/E 65x
- Prevest Denpro: P/E 31x
🎯 Fair Value Range:
| Scenario | EPS FY26E | P/E | FV |
|---|---|---|---|
| 🧂 Base | ₹11 | 35x | ₹385 |
| 😬 Realistic | ₹12 | 45x | ₹540 |
| 🚀 Bull Case | ₹14 | 60x | ₹840 |
🎯 FV Range: ₹385 – ₹840
(CMP ₹614 = slightly overpriced unless growth reaccelerates)
💰 4. Balance Sheet – Toothpaste Tube That’s Squeezed
- No debt — deleveraged 🟢
- Net worth: ₹133 Cr
- Massive jump in fixed assets and investments in FY25
- Inventory Days: Up to 112
- Cash Conversion Cycle: 109 days 😬
🧯 Cash from ops in FY25 = –₹5 Cr, second year in red = not smiling anymore
📉 5. Red Flags (And Cavity Warnings)
- ❌ Working capital days increased to 154 😬
- ❌ No dividend — despite consistent profits
- ❌ Promoter holding fell 3% in Mar 2025
- ❌ Clarification sought by NSE on Mar 2025 results 📩
- ❌ Stock down ~27% from its ₹840 peak
📦 Asset-heavy expansion may bite back if growth slows down
🧍♂️ 6. Shareholding Pattern – Smart Money Enters (Quietly)
| Entity | Mar 2025 |
|---|---|
| Promoters | 66.5% (↓ from 69.6%) |
| FIIs | 3.54% (↑ from 0%) |
| DIIs | 1.72% |
| Public | 28.2% |
🕵️ FII/DII entries hint institutional interest, but declining promoter stake = keep watching
🧾 7. Expansion Highlights
- 🦷 Expanded SmileWorks dental lab network
- 📦 Capex in distribution & warehousing
- 🇬🇧 Entered UK via Dentalkart UK Ltd (51% stake)
- 🧳 Applying D2C + marketplace model globally (UK is test case)
🌍 Global dental e-comm play? Could be IndiaMart x Amazon for dentists… if executed well.
🏁 Final Verdict – A Clean Smile With Gum Sensitivity
Vasa Denticity is a rare, niche, well-branded SME digital play in healthcare — but at ~60x earnings, it’s priced for perfection.
- 📈 Sales are booming
- 🦠 But cash flow is bleeding
- 🧠 High ROE, but slipping YoY
- 🧃 No dividend, and dilution risk creeping in
Grade: A- stock in a B+ valuation — watch for FY26 margins and UK execution before chewing further.
🏷️ Tags:
Vasa Denticity, DentalKart, SME Stocks India, Healthcare E-commerce, Dental Tech, Online Marketplace, EduInvesting, Fair Value Report, IPO Performance
✍️ Written by Prashant | 📅 June 26, 2025
