1. At a Glance
India’s only vertically integrated dental products company, Laxmi Dental, just reported ₹239 Cr in FY25 revenue and ₹32 Cr PAT. With ROE of 22.5% and 58% profit CAGR over 5 years, this ortho-tech upstart has teeth. But with a P/E of 98.6, it better keep flossing flawlessly.
2. Introduction with Hook
If Invisalign and Mamaearth had a B2B Indian baby, it would probably look like Laxmi Dental—a company making aligners, dental consumables, and enough news to keep regulators AND retail investors awake.
Between a ₹40 Cr Bizdent acquisition, increasing its US subsidiary stake, and dealing with CBI + IT dept drama, this dental darling is a high-growth molar with a few cavities.
- FY25 Revenue: ₹239 Cr
- FY25 PAT: ₹32 Cr
- ROE: 22.5% | ROCE: 18.7%
- Stock P/E: 98.6x
3. Business Model (WTF Do They Even Do?)
B2B2C dental-tech manufacturer. Fully integrated—from aligner design & manufacturing to marketing dental products across clinics, exports, and now with US expansion.
Product Categories:
- Clear aligners (flagship)
- Dental implants & consumables
- Digital scanning tools
- Overseas and OEM contracts (India + US)
Client Base:
- Clinics
- Hospitals
- Distributors
- Dental colleges (R&D)
4. Financials Overview
| FY | Revenue | Operating Profit | Net Profit | OPM (%) | EPS (₹) |
|---|---|---|---|---|---|
| FY21 | ₹92 Cr | ₹4 Cr | ₹-5 Cr | 5% | ₹-156 |
| FY22 | ₹137 Cr | ₹7 Cr | ₹-19 Cr | 5% | ₹-596 |
| FY23 | ₹162 Cr | ₹9 Cr | ₹-4 Cr | 6% | ₹-129 |
| FY24 | ₹194 Cr | ₹25 Cr | ₹25 Cr | 13% | ₹804 |
| FY25 | ₹239 Cr | ₹42 Cr | ₹32 Cr | 18% | ₹5.78 |
Yes, that 804 EPS in FY24 was pre-IPO + low equity capital. Adjusted EPS now reflects reality.
5. Valuation
- CMP: ₹482
- EPS (FY25): ₹5.78
- P/E: 98.6x
- Book Value: ₹37.9 → P/BV: ~12.7x
- Market Cap: ₹2,651 Cr
Fair Value Range: ₹400 – ₹520
- If margin expansion sustains and US scaling works: ₹520
- If profit growth slows or legal troubles continue: ₹400
6. What-If Scenarios
| Scenario | EPS Est. | P/E | FV ₹ |
|---|---|---|---|
| Bear (EPS ₹5.5) | 70x | ₹385 | |
| Base Case (EPS ₹6.5) | 80x | ₹520 | |
| Bull Case (EPS ₹7.5) | 90x | ₹675 |
7. What’s Cooking – News, Triggers, Drama
- Acquired 8.9 lakh shares in Bizdent Devices (₹40.9 Cr)
- Increased stake in US subsidiary to 71.43% (Apr 2025)
- Employee Stock Option Scheme floated (Apr 2025)
- CBI case closed against promoter Rajesh Khakhar (Mar 2025)
- Show Cause Notice from IT Dept (Feb 2025)
Summary: Bullish on biz. Cautious on governance.
8. Balance Sheet
| Metric | FY24 | FY25 |
|---|---|---|
| Equity Capital | ₹0.31 Cr | ₹11 Cr |
| Reserves | ₹31 Cr | ₹198 Cr |
| Borrowings | ₹61 Cr | ₹20 Cr |
| Total Liabilities | ₹135 Cr | ₹285 Cr |
| Total Assets | ₹135 Cr | ₹285 Cr |
Post-IPO Cleanup: Paid off debt, bolstered equity, funded acquisitions.
9. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY24 | ₹8 Cr | ₹-15 Cr | ₹1 Cr | ₹-5 Cr |
| FY25 | ₹44 Cr | ₹-29 Cr | ₹111 Cr | ₹125 Cr |
FY25 saw IPO proceeds kick in. But high capex + acquisition cash burn visible.
10. Ratios – Sexy or Stressy?
| Metric | FY24 | FY25 |
|---|---|---|
| ROCE | 19% | 18.7% |
| ROE | 22% | 22.5% |
| OPM | 13% | 18% |
| Inventory Days | 186 | 119 |
| Debtor Days | 47 | 56 |
Verdict: Margin expansion and balance sheet cleanup complete. But valuations stretch dental elasticity.
11. P&L Breakdown – Show Me the Money
| FY | Revenue | PAT | EPS | OPM |
|---|---|---|---|---|
| FY22 | ₹137 Cr | ₹-19 Cr | ₹-596 | 5% |
| FY23 | ₹162 Cr | ₹-4 Cr | ₹-129 | 6% |
| FY24 | ₹194 Cr | ₹25 Cr | ₹804* | 13% |
| FY25 | ₹239 Cr | ₹32 Cr | ₹5.78 | 18% |
*FY24 EPS distorted by low pre-IPO equity capital.
12. Peer Comparison
| Company | CMP | P/E | ROE % | OPM % | Mcap (Cr) |
|---|---|---|---|---|---|
| Laxmi Dental | ₹482 | 98.6 | 22.5% | 18% | ₹2,651 |
| Poly Medicure | ₹2102 | 62.9 | 15.9% | 27% | ₹21,297 |
| Tarsons Products | ₹384 | 68.7 | 4.8% | 28% | ₹2,045 |
| Vasa Denticity | ₹631 | 61.4 | 17.0% | 9.2% | ₹1,049 |
| Prevest Denpro | ₹571 | 37.6 | 18.7% | 34.9% | ₹685 |
Note: Laxmi has best ROE, but also highest valuation premium. Clear market hype.
13. EduInvesting Verdict™
Laxmi Dental is a rare, vertically integrated player in the Indian dental space with scalable products, global ambitions, and proven margin expansion.
But it’s also a stock:
- Trading at 98x P/E
- Faced multiple governance red flags
- Has declining promoter holding (-45% QoQ)
It’s a high-growth, high-risk play, best suited for those who like clean teeth and dirty risk.
Hold your breath. And your stop-loss.
Metadata
– Written by EduInvesting Research | 20 July 2025
– Tags: Laxmi Dental, Aligner Stocks, Healthcare IPO, Dental Tech India, Governance Risk, CBI Case, Pre-IPO Boom
