Laxmi Dental Limited

Healthcare — Medical Instruments & Supplies · NSE

₹185.01−₹5.79 (−3.03%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Laxmi Dental Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Laxmi Dental Limited manufactures and sells dental products in India, the United States, the United Kingdom, and internationally. The company provides custom-made crowns, bridges, clear aligners, thermoforming sheets, aligner related products, and pediatric dental products.

IndustryMedical Instruments & Supplies

SectorHealthcare

Employees2,513

Annual revenue₹272 Cr

How does it make money?

Turns over ₹272 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹19 left at the operating level before interest, tax and depreciation. Each of its 2,513 employees supports ₹10.8 lakh of revenue a year, the signature of a people-led business.

EBITDA margin19.2%

Net margin10.7%

Revenue / employee₹10.8 lakh

Who are its competitors?

The closest listed comparisons in its industry are SUN PHARMACEUTICAL IND L, CIPLA LTD, DR. REDDY S LABORATORIES, APOLLO HOSPITALS ENTER. L. These are the companies its valuation and returns are measured against elsewhere in this report.

SUN PHARMACEUTICAL IND LP/E 34.9x · ROE 14.5%

CIPLA LTDP/E 31.8x · ROE 9.8%

DR. REDDY S LABORATORIESP/E 31.0x · ROE 8.8%

APOLLO HOSPITALS ENTER. LP/E 54.3x · ROE 22.0%

What is its competitive advantage?Little sign of one

Returns on capital of 11.5% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE11.5%

ROE11.9%

Peer median ROE14.5%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 39.1% and earnings to grow about 58.1% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+39.1%

Est. earnings growth+58.1%

Analysts2

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +71% while net margin moved -527% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+71%

Margin effect-527%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

65/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

64/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

32.8x

2Y Median

45.0x

23 monthly readings · mean 55.4x · range 26.2x–109.6x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 27% below its 2y median of 45.0x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟡Against its sector it is priced broadly in line with the peer median of 33.3x.

vs. its own history

Cheap

45.0x median over 23 months · -27%

vs. sector peers

Fair

33.3x median of 4 peers · -2%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

32.8x

P/B

4.19x

EV/EBITDA

19.7x

PEG

1.43

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 7.1% to 19.2% over 3 years.
Debt is being paid down
Total debt is down 66% over 3 years.
Return on equity is rising
ROE has improved from -22.3% to 11.9%.
Return on capital is rising
ROCE has improved from -0.4% to 11.5%.
Valuation below its historical average
At 32.8x the stock trades 27% below its own median of 45.0x.

🔴 What Needs Attention2

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Receivables growing faster than sales
Receivables are up 123% against revenue growth of 71% — customers are taking longer to pay.

Red Flags

3 items require attention · 2 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 5.33x — earnings must service borrowings before shareholders see anything.
🔴Receivables growing faster than salesFinancial
Receivables up 123% against revenue up 71% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹23 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 7.1% to 19.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 66% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 27% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 5.33x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 123% against revenue up 71%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 15% a year✓ 19.5% CAGR
Latest reported year was 13.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 17%✓ 19.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹23 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 11.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 6 neutral · 2 weak

Market Cap

₹1,018 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

32.8x

Fair

Fairly valued against the generic band

P/B Ratio

4.19x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹5.64

Profitable

Profitable on a per-share basis

ROE

11.9%

Moderate

Moderate capital efficiency

ROCE

11.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

5.33x

High

High leverage

Revenue Growth (YoY)

13.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

23.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹23 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹185.01

P/E (Forward)

14.6x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

13.4%

Average

Average margins

Net Margin

10.8%

Good

Strong bottom-line conversion

Current Ratio

6.13

Comfortable

Healthy short-term liquidity

52W Range Position

15%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

194.0 / 197.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

33.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹159 Cr	₹191 Cr	₹237 Cr	₹272 Cr	+19.5%
EBITDA	₹11 Cr	₹26 Cr	₹45 Cr	₹52 Cr	+66.6%
EBITDA Margin	7.1%	13.5%	19.2%	19.2%	—
PAT (Net Profit)	-₹4 Cr	₹25 Cr	₹32 Cr	₹29 Cr	—
EPS	₹-0.72	₹4.51	₹6.05	₹5.26	—
ROE	-22.3%	58.3%	15.2%	11.9%	—
ROCE	-0.4%	20.0%	16.3%	11.5%	—
Total Debt	₹39 Cr	₹50 Cr	₹20 Cr	₹13 Cr	-30.5%
Free Cash Flow	₹4 Cr	-₹7 Cr	₹28 Cr	-₹23 Cr	—

🟢 Revenue has grown at 19.5% a year over 3 years.

🟢 EBITDA has grown at 66.6% a year over 3 years.

🟢 EBITDA Margin has risen from 7.1% to 19.2% over 3 years (+12.1 pts).

🟢 PAT (Net Profit) has turned positive, from -₹4 Cr to ₹29 Cr.

🟢 EPS has turned positive, from ₹-0.72 to ₹5.26.

🟢 ROE has risen from -22.3% to 11.9% over 3 years (+34.2 pts).

🟢 ROCE has risen from -0.4% to 11.5% over 3 years (+11.9 pts).

🟢 Total Debt has shrunk at 30.5% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹4 Cr to -₹23 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹294 Cr

Total Liabilities

₹50 Cr

Total Debt

₹13 Cr

Cash & Equivalents

₹8 Cr

Operating Cash Flow

-₹5 Cr

Capex

-₹18 Cr

Shareholding (proxy)

Institutional Holding

16.3%

Insider Holding

68.2%

Analyst Consensus

Recommendations

3 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹340

+83.8% vs CMP

Target Range

₹280 – ₹400

Peer Comparison

Company	P/E	ROE
SUN PHARMACEUTICAL IND L	34.9x	14.5%
CIPLA LTD	31.8x	9.8%
DR. REDDY S LABORATORIES	31.0x	8.8%
APOLLO HOSPITALS ENTER. L	54.3x	22.0%

Recent News

1 positive2 mixed3 general

Laxmi Dental Limited (LAXMIDENTL.NS) Edges Higher, Nears Key Resistance Zone - Technical Analysis

https://www.siam.in/, 12 Oct

LAXMIDENTL Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Buy Laxmi Dental; target of Rs 280: Motilal Oswal

Moneycontrol.com, 13 Aug

Laxmi Dental Q1 FY27 Results Preview

Univest, 08 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Laxmi Dental AGM: All resolutions passed, IPO variation approved

scanx.trade, 29 Sept

Laxmi Dental soars after Q4 FY26 profit jumps 136% YoY

Business Standard, 22 MayResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong13.2/20

🟡Financial HealthAdequate11.9/20

🟢GrowthStrong13/20

🟢ProfitabilityStrong10.7/15

🟡ValuationFair9.5/15

🔴RiskHigh2.5/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 15% a year19.5% CAGR
✓EBITDA margin holds above 17%19.2%
✗Free cash flow remains positive-₹23 Cr
✓Debt / EBITDA stays below 2x0.3x
✓ROCE stays above 8%11.5%