Laxmi Dental IPO Review

Laxmi Dental is India’s only end-to-end integrated dental products company as at September, 2024. Their offerings include custom-made crowns and bridges, branded dental products such as clear aligners, thermoforming sheets and aligner related products as a part of aligner solutions, and paediatric dental products.

The performance depends largely on the efforts and abilities of the Key Managerial Personnel, Senior Management, Rajesh Vrajlal Khakhar, the Promoter, Chairperson and Whole Time Director and Sameer Kamlesh Merchant, the Promoter, Managing Director and Chief Executive Officer, have an average experience of over 30 years and 20 years, respectively in the dental products industry. The input and experience of the Promoters, our Key Managerial Personnel and Senior Managements are valuable for the development of business and operations and the strategic directions taken by the Company.

The Revenues from operations for the period ended on Sep 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 1,179.00 Million, ₹ 1,952.64 Million, ₹ 1,638.44 Million and ₹ 1,380.70 Million respectively. The EBITDA for the period ended on Sep 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 304.70 Million, ₹ 254.14 Million, ₹ 108.27 Million, and ₹ -27.47 Million, respectively. The Profit after Tax for the period ended on Sep 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 227.39 Million, ₹ 252.29 Million, ₹ -41.63 Million, and ₹ -186.79 Million respectively. This indicate a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ 5.11 and post-issue EPS of ₹ 4.59 for FY24. The pre-issue P/E ratio is 83.76x, while the post-issue P/E ratio is 93.24x against the Industry P/E ratio is 94x. The company's ROCE for FY24 is 19.97%, ROE for FY24 is 78.73% and RoNW 78.78%. The Annualised EPS based on the latest financial data is ₹ 9.04 and PE ratio is 47.34x. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Laxmi Dental showing potential listing gains of 24.51%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Apply to the Laxmi Dental Limited IPO for Listing gain.

Disclaimer: The information provided in this IPO review is for educational and informational purposes only and should not be construed as financial advice or an offer to buy or sell securities. The review must not be used as a singular basis of any investment decision. The views herein are of a general nature and do not consider the risk appetite or the particular circumstances of an individual investor; readers are requested to take professional advice before investing. Nothing in this document should be construed as investment advice. The content is based on publicly available information and market perceptions as of the date of publication and is subject to change. Neither the author nor the website is responsible for any losses or damages arising from the use of this information. 

About the Author
 CA Abhay Kumar (Also known as  CA Abhay Varn) is a qualified Chartered Accountant by profession and cleared CA at age 21. He is a SEBI Registered Research Analyst with Registration Number - INH300008465. He Possesses 8+ years of experience in the Stock Market Field and has also worked in Big CA firms during the training period. He is good at Technical analysis and Fundamental Analysis and uses both Technical and Fundamental analysis along with five other important factors that affect the movement of the Market namely Global Market Analysis, Upcoming Event Analysis, Institutional Money Analysis, Derivative Data Analysis, and Emotions and Sentiment of Traders and Investors in his Framework called - Technical Fundamental GUIDE to find the winning Trades.