Laxmi Dental Limited is set to launch its initial public offering (IPO) from January 13 to January 15, 2025, aiming to raise approximately ₹698.99 crores. The IPO consists of a fresh issue of equity shares valued at ₹138 crores and an offer for sale of 12.83 million shares. Priced in the range of ₹407 to ₹428 per share, Laxmi Dental operates as one of India’s largest dental laboratories, providing a wide array of dental products and services.
₹120
₹428
₹542.00
Expert Opinions
Market sentiment for the Laxmi Dental IPO is positive, reflecting growing investor interest in the healthcare sector, particularly in dental products. Laxmi Dental stands out as one of India’s largest dental laboratories, offering a comprehensive range of products, including custom-made crowns and aligners, supported by six manufacturing facilities that enhance operational efficiency. Laxmi Dental stands out as one of India’s largest dental laboratories, offering a comprehensive range of products, including custom-made crowns and aligners, supported by six manufacturing facilities that enhance operational efficiency.
The Valuation Analysis shows a revenue increase from ₹163.84 crores in FY2023 to ₹195.26 crores in FY2024, reflecting strong performance and demand for dental products. With an expected EPS of ₹5.11, the P/E ratio indicates growth potential, though it may be higher than some industry peers. From a long-term investment perspective, Laxmi Dental is well-positioned to capitalize on the increasing demand for dental services in India.
Investor Considerations
Company performance and fundamentals reflect a strong operational framework, with Laxmi Dental being one of India’s largest dental laboratories, reporting significant revenue growth and profitability. The sector outlook is favorable, driven by increasing demand for dental products and services as awareness about oral health rises among consumers. The IPO valuation, With an expected EPS of ₹5.11 for FY2024, the projected P/E ratio of 79.74 to 83.67 indicates strong growth potential in the dental sector, despite being higher than industry averages.
Growth prospects are bolstered by plans for expanding manufacturing capabilities and investing in new technologies to enhance product offerings. However, investors should be mindful of risk factors, including competition from established players and potential fluctuations in raw material costs. A long-term investment horizon is advisable, as Laxmi Dental aims to leverage favorable market trends while navigating challenges in the dental sector.
FAQs
The Grey Market Premium showed excellent accuracy in predicting Laxmi Dental’s listing performance. The GMP of ₹120 predicted a premium of 28.04% over the issue price, while the stock delivered a similar gain of 26.64%. With a minimal prediction error of just 1.09%, the GMP effectively captured both the direction and magnitude of the listing gains, proving to be a highly reliable indicator in this case.
Laxmi Dental IPO Current GMP is ₹120.
Laxmi Dental IPO Expected Returns is 28.04%.
Laxmi Dental IPO estimated listing price is ₹548.