Laxmi Dental Limited offers a comprehensive portfolio of dental products, they are India’s only end-to-end integrated dental products company as at September, 2024. The 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. They have had a presence of more than 20 years and according to the F&S Report, based on revenue for Fiscal 2024, they are amongst the top two largest Indian dental laboratories. They manufacture the dental products across the six manufacturing facilities spread across 147,029.63 square feet. Primary dental products offered by the laboratory include custom made dental prosthesis such as metal free crowns and bridges, including their range of branded premium zirconia crowns and bridges 'Illusion Zirconia', porcelain fused to metal ('PFM') crowns, bridges, and dentures. Metal-free products contributed to 53.70% of the total revenue from the dental laboratory business catering to the Indian market and to 36.31% of total revenue from the dental laboratory business catering to international markets respectively in Fiscal 2024. They have launched iScanPro on August 9, 2024, branded intraoral scanners for digital dentistry, currently being employed by 264 dentists. Dental restoration units prepared using digital impression constituted 48.61%, by volume, of the total units sold by the domestic laboratory business and constituted 55.48%, by volume, of the total units sold by the international laboratory business in Fiscal 2024. The facilities in Boisar are in compliance with the quality system regulations enforced by the United States Food and Drug Administration ('US FDA'). In 2021, company launched clear aligners under the brand Illusion Aligners, and also offer aligner and retainer material, thermoforming sheets, biocompatible 3D printing resins, thermoforming machines and consumables under the brand 'Taglus' which are used for manufacturing clear aligners. Kids-E-Dental offers a comprehensive range of paediatric products, including pre-formed branded paediatric crowns, silver diamide fluoride ('SDF'), space maintainers, fissure sealant, reinforced splint and mineral trioxide aggregate. As of September 30, 2024, they have six manufacturing facilities, three of which are located in Mira Road, Mumbai Metropolitan Region, two in Boisar, Mumbai Metropolitan Region, Maharashtra and one in Kochi, Kerala, and further five supporting facilities two of which are located in Mumbai, and one each in Delhi, Bengaluru, and Ahmedabad with manufacturing capabilities. The manufacturing facilities in Boisar and one of the manufacturing facilities in Mira Road have been registered with the US FDA. Further, they have also obtained registration from ANVISA (Brazilian health regulatory agency) in relation to thermoforming sheets, offered by them. As per financial performance, Laxmi Dental Limited has posted total income / net profits of Rs 138.07 Cr / Rs (17.23) Cr (FY22), Rs 163.84 Cr / (3.85) Cr (FY23), Rs 195.26 Cr / Rs 26.83 Cr (FY24) and Rs 117.90 Cr / 23.45 Cr (H1 FY25). So as per previous financials data, company has shown good growth. Company has an average EPS of Rs 1.77 and average RoNW of 22.77% for last three fiscals. Issue is priced at a P/BV of 33 as per NAV of Rs 12.97/- as on 30.09.24. If we attribute latest earnings of FY23, FY24 and annualised FY25 on equity post issue, then asking price is at a P/E of around NA, 87.7 and 50.16 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, three lead managers are associated with this IPO, and have handled around 65 IPOs in last three fiscals. ( As on 09.01.25 ) As per financials, Laxmi Dental Limited has shown steady growth, RoNW is 78.8% and P/E is NA, 87.7 and 50.16 respectively as per FY23, FY24 and annualised FY25 earnings. So issue looks agressively priced when compared with peers. Company is end-to-end integrated dental products company, which is fragmented business segment and expected to grow at good rate. So, we give SUBSCRIBE rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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